Welcome to your weekly tea from the Boutique Industry. Welcome to all the new sign-ups from the Dallas and Atlanta markets! This week's email is brought to you by InstantBoss, home of Small Shop Social.
Avenger voice: "We meet again, J months"
What is it about January, June, and July? Sales fall like Wylie Coyote off of a cliff. Fourth of July sales give us a little glimmer of hope, but come July 5th, I'm ready for the boys to hit the gridiron again and parents to start their Back to School Shopping.
Kiss My Dallas
Dallas was filled with new collections from some amazing vendors. My boutique is based in the South, so take my suggestion accordingly, but here are the collections/vendors that we are most excited about:
New Denim from Southern Grace Wholesale: No MAP, open packs, vanity sizing.
Transitional Tops from White Birch
Transitional Dresses & Crochet Tops from UMGEE. Low minimums & trendy pieces
Acid Wash Plaids from New Vintage Wholesale: They acquired Artifacts, the OG in acid wash plaids
Inventory is not an Asset
Here's what's going on that we should consider as Boutique Owners:
Early June Target said it will take short-term hit to profits. They cancel orders and mark down unwanted inventory
Target CEO said it's clearing space for groceries and other non-discretionary spending
Experts believe there's going to be so much inventory in the market soon that it's going to cause a massive deflation of pricing.
Experts say discretionary spending, like clothes, will come back up in the back half of the year
Our take: Stocking up on too much inventory is not a good idea right now. Be very picky with brands. Try and work with brands that do open packs. Why so many YC brands require you to still buy 3 Smalls to get 1 Large is beyond us, but there are plenty of brands offering Open Packs in YC trends.
Takeovers: If you are not taking advantage of takeovers, you are missing out. This is a very low-risk way of testing products, then buying only what you sell. Don't fall into the trap of waiting too long after you've shown product. Sometimes brands say they are holding inventory, but if you take too long, they may release it to others. You risk having angry customers. We've found a few brands that offer Live Boxes. They'll send you samples in your size, you make a dummy order with them to reserve quantity, show/sell to your group, and then adjust quantities with them to only ship you what you need.
The Vegan Warehouse: Bags
CY Fashion: YC Clothing
Julia Rose: Gif-tables, sunglasses, some apparel
Nash Grey Wholesale: Footwear, hats, bags, accessories
Heimish: YC Apparel
Southern Grace Wholesale: Apparel, graphics, accessories, gifts
Opinion: Maybe 2020-2021 were Gifts and 2022 is a new Baseline
What if... just, what if... 2020-2021 were just anomalies for our industry. There's no way for us to understand why during a pandemic, where social gatherings fell, boutique fashion sales soared. Maybe we can chop it up to people having lots of time and they spent it shopping. However, 2022 is a new reality.
“It’s a summer of uncertainty,” said Ray Keating, chief economist with advocacy group the Small Business & Entrepreneurship Council. “Inflation is a major worry and tied to that is increases in costs small businesses are seeing from their own vendors and suppliers. There’s a tight labor market. It’s a tough mix.”
Rise in payroll demands, higher costs of goods, and low consumer confidence is not a good sign for us small business owners. When the CEO of Target says they have too much inventory, that's scary.
How do we move forward? Well I think the obvious thing is we should understand that Americans are facing some tough realities when it comes to spending. That doesn’t mean Americans aren’t buying new clothes, but it does mean we have to offer price-conscious options. Finding RTS pieces from wholesalers that are at a deep discount is key. Keep tops under $24.99. Be careful with stocking up on too many accessories as well. If Americans are buying new pieces, chances are it’ll be apparel.
Find brands that will let you do takeovers. More and more brands are offering in-stock pieces for takeovers. Brands that are offering this realize this is the new wave of fulfillment. Inventory risk in 2022 is not fun.
Trivia
Which Mom Boss is doing over $140 million in annual sales for her boutique?
a. Jennifer Lopez
b. Tori Gerbig
c. Reese Witherspoon
d. Beyonce’
The 11th person to respond to this email with the correct answer wins $100 in ZSTASH cash!
