March 15, 2020

As Malls Close

They're closing malls in Pennsylvania.

Brands like Patagonia and Urban Outfitters are shutting down.

All necessary, of course. If you think it is an overreaction, that's your perspective and let's pray that you are proven right.

We'll need to assume that retail essentially shuts down for a couple of months. With luck, some sales migrate over to e-commerce, leaving you with an annual p&l that might have looked ok but will instead look like this:

You might lose almost 90% of annual (ANNUAL) retail profit by being virtually shut down for eight weeks. If you can move 20% of what you lose online (while holding e-commerce sales flat ... which is a big challenge), you double (in this example) e-commerce profit, saving your business for the year.

You were born to be a Leader ... you were born to figure out how to solve really challenging problems.

This is a really challenging problem.

You've got this.

Tomorrow we'll talk about what happens to File Power and Expenses ... given that your CFO is going to DEMAND that you cut that marketing budget in half to "save" your business at the very moment you shouldn't reduce spend a bit.

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