Be Proactive

Financing Fashion and Consumer Products Since 1958

Be Proactive

Brighter days are coming. I’m not one to be optimistic when circumstances don’t warrant it. But, we at Hilldun have a unique perspective on the retail environment. We engage with thousands of independent specialty stores all over the world on a regular basis. Frequently we know the owners, the salespeople, the general staff. We hear when they are doing well and we hear about their concerns and troubles. Since they pay us for all of your invoices, we also have our fingers on the pulse of their businesses.

By virtue of our relationships to both the vendors and the retailers, often we can see trends before you may be able to. Since this crisis began, though many specialty stores kept paying their invoices at a much better rate than the major department stores (with a few exceptions), we witnessed a significant falloff in the numbers of checks we were receiving daily. Sadly, many of the high profile specialty stores have ceased paying invoices all together, despite our repeated requests for payment plans. And as you know, Saks, Macys/Bloomingdales and Neimans have placed moratoriums on their payments, or have pushed out their terms of payment by 60 – 90 days. But yesterday and today, we received hundreds of checks in the mail from small stores all over the country. The increase in the volume of payments is extremely significant, and it signals to me that there is a sense around the country that an easing of the crisis may be in sight. Certainly it will be a test for everyone, as small businesses begin to reopen regionally. Hopefully, this kind of a roll out will work without causing a setback. We will see the results in a few weeks. My fingers are crossed. If we’re careful and thoughtful, and we maintain social distancing and remain hygienic, the new normal that we’ve all been talking about may begin to set in.

The purpose of this email is to suggest to all of you, whether you provide a product or a service, that you study the map of the US with regard to which states are most likely to reopen retail shortly and/or sooner than others, and you reach out to the stores in those states and cities. Create packages of product for them, at a discount, that you believe will sell quickly and help them generate some cash flow. Core product, product that is definitely wearable now, product that suits the times and social engagements that a limited opening will allow, product that’s appealing to the eye, and is fresh and new. Present a compelling story and a strong enough inducement to the retailers, so that you can begin to reduce your current on-hand inventories. Cash flow is essential for you and for them, more so than earning a normal margin. As each day passes, and as more regions test reopening, more and more brands will be reaching out to these same stores. Be the first. Get to them before they’re flooded with other opportunities. Make deals now to generate some sales immediately, and relieve yourselves of inventory that will most likely only diminish in value with time if you hold onto it.

We’ve reached a point where the economic damage this virus is doing to our nation and the world, is requiring people to weigh the risks they’ll be taking by re-entering the economy. These are terrible choices. But we see all over the country that a number of states are willing to take the chances in order to survive commercially. I’m not making a judgment on these decisions. It’s not for me adjudicate. But if there is a prospect for you to resume doing some business without causing harm, then you should take advantage of it now. We can provide lists of specialty stores whose credit we are/were approving over the last year, based upon state,country and category of product that they carry. If this would be helpful, please reach out to Claire at cd@hilldun.com, and copy me, gary@hilldun.com and we will prepare these for you.

Stay Safe. Stay Healthy. Stay Positive.

Gary Wassner