Ricardo Lopez, CEO of Bellwether Coffee, discusses the challenges faced by retailers in the United States, who are vital contributors to the economy with over 52 million Americans relying on the sector for their livelihood. Factors such as growing competition, rising costs of goods, real estate prices, and labor shortages are causing strain on business owners as they strive to control costs while increasing revenue.
To future-proof their businesses, retailers can consider implementing various strategies, using the coffee industry as an example. One approach is to establish new revenue streams by expanding product lines, offering subscription services, opening wholesale accounts, or creating new business models. Diversification can help businesses be more nimble and adaptable to market fluctuations without constantly changing prices for consumers.
Owning more of the supply chain can also benefit retailers, as seen during the Covid-19 pandemic when businesses were vulnerable to supply chain disruptions. Bringing roasting in-house, for example, can increase profit margins and reduce the risk of disruptions faced by wholesalers. By taking control of their supply chain, retailers can better manage challenges such as labor shortages and price increases.
Market outside the traditional retail space to increase brand visibility and attract a wider customer base. Coffee retailers, for instance, can sell their products to other cafes, restaurants, and grocery stores, expanding their sales and brand recognition. Building sustainability into the business model is also crucial, as consumers are increasingly willing to pay a premium for sustainable products. Retailers can set measurable sustainability goals, such as fair wages for workers and eco-friendly packaging options, to showcase their commitment to sustainability.
Despite the challenges faced by retailers, these businesses play a significant role in the economy and can thrive by following key recommendations and staying innovative. Adapting to the evolving retail landscape and implementing strategies for diversification, supply chain control, marketing expansion, and sustainability can help retailers succeed in the competitive market. The retail sector is constantly changing, but with the right approach, businesses can position themselves for long-term success. The Forbes Business Council offers growth and networking opportunities for business owners and leaders looking to qualify for membership.
