Chain Store Age recently highlighted Chico’s strategic plan to weather the economic storm.
According to the Associated Press, Chico’s outlined the plan in a statement following its annual shareholder meeting.
“The company plans to improve the “fit, fabric and quality” of its clothes. At the same time, it plans to slow real estate square-footage growth until the weak retail environment improves, the report said.
It also plans to tighten control on inventory, and cut expenses and capital expenditures.”
THE REAL WORLD RETAILING TAKEAWAY
It’s the merchandise, Stupid.
The first time I wrote for allbusiness.com, I wrote about how if you have the merchandise right, then you’re on the right track. Read it here.
Beyond the merchandise, Chico’s is doing the same things I’ve been recommending:
Tightening inventory – cut waaay back. But not so far as to run out of product. Everyone has room for inventory cuts.
Cutting expenses – reevaluate everything, from payroll hours to the actual hours you stay open. Just as you’ve changed your personal habits, you need to change your business habits.
Get going, if you haven’t already. Time’s a wasting.