We are living in unprecedented challenging economic times with most of the economic pressure coming from external sources. The cost pressures for everyone and especially charities is considerable with most being very concerned if their unrestricted income from retail will be secure in the future. To future proof a charity retail business there are a range of stages that are proven if followed because every charity retailer is slightly different and there are no short cuts.
The recommended process is as follows:
Review your current retail business
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Carry out an honest appraisal / review of the whole current retail business using a range of highly detailed quantitative tools.
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Complete a robust qualitative review based on the current operational practices and compare to the latest and future best practices (online and shops).
Project future sales and costs
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Project the future sales performance / cost projection of the retail business by shop location and online selling platforms if the retail operation remains the same as it is currently.
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Project the future sales performance / cost projections of the retail business by shop location and online selling platforms if the retail operation adopts the latest and future best practices (online and shops).
Develop your retail strategy
Whilst many people naturally lean towards a 5-year strategy, we recommend a 3-year strategy or detailed reviews every year if you prefer a longer strategy. This is because retail is changing fast and to ensure it remains relevant some refreshing / updating is highly recommended.
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Consider the expansion / contraction / consolidation options to generate additional unrestricted income.
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Discuss the findings internally and agree the overarching retail strategy.
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Produce the financial modelling to support the overarching retail strategy with enough detail to obtain board approval.
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Write the retail strategy with a range of landmark, detailed financial modelling, and schedule review dates (yearly).