Entrepreneurship & Small Business

retail business is down 50% this year!!

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  • Apr 25th, 2019 1:11 pm
Newbie
Dec 8, 2015
13 posts
5 upvotes
Toronto, ON

retail business is down 50% this year!!

Any business owners here feel the pain? I own a furniture/lighting store and business has slowed down since last october. This month April is the worst! I've never been in a situation where i cant even make rent the first two weeks of the month, in fact I only made 20% of my rent thus far this month. This is super scary stuff! Usually MArch and April business starts to pick up but not this year, it is getting worst and worst every month and i am stressed! How are the other industries doing?
14 replies
Deal Fanatic
Oct 7, 2007
9404 posts
5374 upvotes
Have you done any analysis to figure out why the drop in business? Are you losing business to new competition that didn't previously exist? Or are the industries that drive the sales of your product slowing down? Or is it something else?
Deal Addict
Nov 18, 2015
1236 posts
1688 upvotes
Waterloo, ON
Well the housing market has slowdown.. I could see why furniture/lighting sales would drop too...
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
I own a medical devices business and I will say January and Feb were bad (Mainly weather since it was so crappy). My overall sales are slightly down this year as well (big stock market meltdown from Oct to Dec wasnt helping either)

My March and April have been very busy though!

So yes do an analysis and see why you dropped business that much -- new competition, less marketing, people shifting online, etc? Sometimes if the stock market is crashing, lots of people stop spending as they are glued to the doom and gloom. Weather can play a part and Jan and Feb weather was horrible (in Toronto anyways) so less people wanting to buy stuff.
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
wartune123 wrote: Well the housing market has slowdown.. I could see why furniture/lighting sales would drop too...
This too. Especially if he's in Vancouver then I can see why his sales are really down..
Newbie
Apr 8, 2019
2 posts
I feel like the extended cold weather coupled with a slowing real estate market (approx 5% reduction in home purchases) is contributing to this, especially considering your nature of business. Do you also sell online? or have an online presence? I know when the weather sucks and I want to browse for new items for the house, if a store doesn't have a lot of online presence it terms of showing off their products or ordering online etc. I just skip that business and move on to the next.
Deal Expert
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Mar 9, 2007
15618 posts
13276 upvotes
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WOULD SOMEBODY THINK OF THE CHILDREN!!!
Deal Addict
Oct 6, 2015
2463 posts
1401 upvotes
Talk to your landlord. Since probably everyone is in the same boat, its not like the landlord has much bargaining power either.

I monitor an indicator relating to rail traffic, and its basically collapsed over the past few weeks.

Bank of Canada really screwed the pooch by raising rates so high when the economy couldn't support it. With no inflation to be seen either.
Newbie
Dec 8, 2015
13 posts
5 upvotes
Toronto, ON
doesnt seem like competition is a factor because i havent noticed any new stores opening up nearby. The traffic is just not there anymore. I think its the whole housing market industry thats slowing down. But ive heard even restaruants and mechanics arent doing so well right now either!
Deal Expert
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Aug 2, 2010
15196 posts
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Here 'n There
Hmm, I can hardy ever get a restaurant reservation and my mechanic says business is fantastic.

I think in your case it's a bit of slowdown in purchasing generally as I reported above and online competition. I find it much easier to shop online for lighting as selection is limitless. Same with furniture. It's much easier to shop around that way than to spend the time going to a store that is going to have limited inventory anyway. Also, the prices are typically lower.
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
dwong22 wrote: doesnt seem like competition is a factor because i havent noticed any new stores opening up nearby. The traffic is just not there anymore. I think its the whole housing market industry thats slowing down. But ive heard even restaruants and mechanics arent doing so well right now either!
I think your business is likely getting hit by online.. wayfair is one place where you can find thousands of light fixtures. same with amazon unfortunately.

Its just the way... the younger generation wants to do everything online and not go in store.

Personally for a light fixture I would like to see how it is in person and buy.. but then again most dont think that way.

Some businesses will be effected by online more than others.
Deal Expert
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Aug 2, 2010
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Here 'n There
Sanyo wrote: I think your business is likely getting hit by online.. wayfair is one place where you can find thousands of light fixtures. same with amazon unfortunately.

Its just the way... the younger generation wants to do everything online and not go in store.

Personally for a light fixture I would like to see how it is in person and buy.. but then again most dont think that way.

Some businesses will be effected by online more than others.
Yea but if I don't like it I just send it back for full refund. Furniture is a bit more difficult of course so you have to be more certain it is what you want but the websites are so well done now with multiple pictures from all angles and close-ups that disappointment is less often.
Newbie
Dec 8, 2015
13 posts
5 upvotes
Toronto, ON
eonibm wrote: Yea but if I don't like it I just send it back for full refund. Furniture is a bit more difficult of course so you have to be more certain it is what you want but the websites are so well done now with multiple pictures from all angles and close-ups that disappointment is less often.
yeah this is what i dont want to deal with. The returns and open boxes. Once the item is taken out of the box and customers creates a mess trying to repackage it, i wont be able to sell it out to anyone so it becomes garbage after.
Deal Expert
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Aug 2, 2010
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Here 'n There
dwong22 wrote: yeah this is what i dont want to deal with. The returns and open boxes. Once the item is taken out of the box and customers creates a mess trying to repackage it, i wont be able to sell it out to anyone so it becomes garbage after.
Allowing customers to return items for refund is great marketing and in this day and age is a fact of life for vendors. How do you compete then with those who do, all things being equal? Not allowing it just drives another nail in what could be an inevitable coffin for your business.

I allow refunds and then re-sell returned products at a discount. It's been great for marketing my products.

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