High Point Market Fall 2008: Retailers buying, but cautiously

Part of my goal at this High Point Market is to talk to as many retailers as possible to see if I can get a clearer picture of what’s going on at retail.

Well, there’s good news and bad news. The good news is that key retailers are here and I’ve had a chance to have extended conversations with them.

The bad news is that even after a number of in-depth conversations, I still don’t have a better picture regarding retail activity.

Maybe I shouldn’t be too hard on myself, especially since most of the retailers I spoke with —and these are people at the top of their game — are just as uncertain as I am about when business will come back or what it may look like when it does.

Our conversations confirmed a number of things, however. For openers, while they may be buying very carefully, retailers are placing orders here this week with an emphasis on youth, home entertainment, casual dining and mid-to-better upholstery.

The consensus from the retailers is that despite what’s going on with the economy, exciting new product will be the bus that drives the business out of the ditch. This product will have to have  a very high perceived value, and be able to be delivered on a just-in-time basis.

While retailers may be looking to take price points down a bit, high-perceived value does not mean they want cheap goods.

They also stressed the need for innovative products. Retailers told me that these days, when customers do come in, they are not just kicking tires.

“The fact that she’s in the store at all tells me she is serious, and I can’t afford not to have something that intrigues her. I may not get a second shot,” said one owner of a regional chain.

Others mentioned attracting shoppers into the store via one-day specials, community events and quirky television spots.

But of all the elements that retailers are studying, the Internet is the No. 1 concern.

Retailers I spoke with are smart enough to know that they still don’t know enough about the Web. But they are also smart enough to know that they need to pay more attention. Specifically, they said they realize the need to have their Web sites be as meaningful as their brick-and-mortar enterprises.