As we all know now, we are living in historic times. Our industry, our country, and the world is changing faster than ever before. For all of us this is a new experience.

Sales have dropped to such a point that a survival mentality has taken over. The reasons and causes of this worldwide economic downturn are well publicized, but the long-term effect and impact are yet to be determined. Some are even predicting that this will end up shaking the very core of capitalism.

Consumers drive 70 percent of our nation’s business, which puts retailers in the front lines of this downturn, as evidenced by the liquidations we’ve already seen and those that will inevitably follow.

Cash has become king and debt has become the pallbearer for those who have too much. Banks and venture capital groups either don’t have the funds or are hording what they have left and won’t be coming to the rescue. Yesterday’s IPO frenzy has slowed to an occasional drip and store expansion plans have virtually disappeared. A few have even predicted that we’ll lose close to 173,000 retail units in 2009 alone. With over 300,000 retail jobs already gone, what will we see over the next eighteen months?

Even healthy retailers are acting as if they are in bankruptcy mode. Capital, travel, and payroll budgets are all being scrutinized to a degree never seen before. And this will continue at least for the next two years.

While in the past the LP industry appeared almost recession proof, we are now feeling the effects like everyone else. Even with the significant increase in theft activity seen over the last few months…some saying as much as a 30 percent increase… our industry is losing jobs from store to senior level. Regretfully, most of these jobs are lost for at least two to five years.

Our industry’s proactive mantra is being replaced with a reactive approach that stretches and expands responsibilities, decreases quality, and increases stress on both the retailer and the executive. Combine this with the retailer’s survival mentality and the job losses we’ve already seen makes for a very difficult environment.

Jobs are scarce. Bulletin boards show one million fewer postings compared to the same period last year. Regretfully this trend will be with us for a while and it’s impacting everyone and every organization. The ranks of the job seekers has swelled to an alarming level, and even those who have jobs are wondering what’ll happen if they lose theirs. The vendor community is reeling as well. By August 2009 we’ll likely see a 30 to 40 percent reduction in headcount in this group; all of whom are valuable members of this industry providing a service, adding value, and making a living.

For the first time in modern history the line between the unemployed and employed seems to be ever grayer with the step between the two small. How we as an industry and as individuals respond and contribute will determine how successful we’ll recover.

Interestingly enough what will make both groups successful is very similar. This is a time when every employer, every job seeker, and every vendor must reinvent themselves and rethink their business, their career, their goals, and their value. This is a time when thinking out of the box is a necessity, not a cliché.

Establishing a clear plan and sprinting for it will put you in a proactive mode when everything around you appears to be reactive.
Take the time to develop a new plan for your job, your career, your business, and your survival. Create a plan and then be ready to flex, because flexibility and embracing new ideas, new approaches, and new thoughts will help make you successful… or at least survive this turbulent time.

Secondly, take the time to help your unemployed peers make sure they’re getting the help they deserve with outplacement services, networking, and introductions. Advice is great, but action delivers results. So do something for them.

Recently, a prominent CEO shared his thoughts about these economic times. He believes that this economic crisis will bring manufacturing back to North America, which will be a good thing for us long term. However, getting there over the next eighteen months with be difficult. He also said with great conviction that he believes in the great American entrepreneurial spirit and that it will take us out of this. So echoing his words—find your American entrepreneurial spirit and sprint to it!

Turning your Retail Loss Prevention, Audit & Safety Human Resource Questions into INFORMED DECISIONS!