fbp
Independent Retailers Continue Strong Confidence Entering Q4

Written by Doug Marsh

October 1, 2020

NMG Index moved up nearly a point, as retailers’ sales performance continues to stay strong 

As the industry continues to move forward in the face of numerous challenges, Independent retailers reported another month of strong confidence levels and sales performance. 

The third edition of the Nationwide Marketing Group Independent Retail Confidence Index (NMG Index) saw the overall confidence level increase nearly 2 points in October to 192.25 (from 190.57 in September). Percentage wise, the NMG Index moved up nearly 1 percent to 68.4% nearly reaching the August high of 68.5%, strongly tilting towards the more confident end of the scale. 

, Independent Retailers Continue Strong Confidence Entering Q4, Nationwide Marketing Group

According to retailers’ open responses throughout the survey, confidence is high, but there is continued concern around product availability and backorders“Business is good and as long as we can continue to get product, we will be in great shape,” said one retailer. Another reported “It depends on product availability.”  Despite the supply chain challenges, retailers are for the most part continuing to see a steady flow of business as many parts of the country begin to “get back to normal” and stores reopen.  

Store Traffic 

Some retailers stressed concern over the election uncertainty, an uptick in COVID cases in some areas, as well as consumers learning more about the availability issues. That said, retailers continue to report high confidence in their ability to drive foot traffic. In fact, in the first three months of the NMG Index, confidence in retailers’ ability to drive traffic into their stores has outpaced their confidence in their ability to drive e-commerce sales.  

, Independent Retailers Continue Strong Confidence Entering Q4, Nationwide Marketing Group

Retailers seeing stronger foot traffic in the past month point to a combination of increased awareness advertising and consumers demand staying high. On the other end of that spectrum, retailers who reported lower confidence in their ability to drive foot traffic have still seen their sales up. Traffic is down overall but sales are up, I would like to see traffic increase but as long as those coming in are buying it is good,” said one retailer. 

Sales Goal Performance 

And beyond their strong foot traffic confidence, Independent retailers have maintained an exceptionally high success rate converting that foot traffic into actual sales.  

, Independent Retailers Continue Strong Confidence Entering Q4, Nationwide Marketing Group

Although those coming in short of their goal has increased some, the NMG Index survey found that nearly 70% exceeded their sales goal, with 54% of all retailers exceeding that goal by more than 11%.  

 Product Confidence 

The product categories month-over-month for the NMG Index were almost identical. Looked at on a scale of 1-to-10 (where 10 is the “most confident”), the 18 product categories garnered an average score of 6.55 in OctoberLast month, the average score checked in at 6.52. 

, Independent Retailers Continue Strong Confidence Entering Q4, Nationwide Marketing Group

If you are interested in participating in the monthly NMG Index survey, you can sign up right here to have the survey delivered directly to your email. 

Connect With Us!

More Podcasts

124: Castle Rental & Pawn Talks NIL Deal with Local College “Rental” Athlete

124: Castle Rental & Pawn Talks NIL Deal with Local College “Rental” Athlete

The stars aligned perfectly for Enos Barger, managing partner at Castle Rental & Pawn, to sign an NIL deal with a local college athlete and recent transfer student. But theirs is a situation that other independent business owners can learn from and look to capitalize on in their own markets.

123: Celebrating 70 Years of Queen City Audio Video & Appliances

123: Celebrating 70 Years of Queen City Audio Video & Appliances

Started as a TV repair shop in 1952, Queen City Audio Video Appliances has grown into a widely successful independent retail business in the Charlotte, NC market. As they celebrate 70 years in business, we sit down with second-generation owner Roddey Player and his kids Roddey Jr. and Kate to talk about the company’s legacy, their expansion efforts and more.   

122: Brand Story Time with Todd Getz from GE Appliances

122: Brand Story Time with Todd Getz from GE Appliances

A lot fo work and effort goes into crafting an effective brand story. Just ask Todd Getz, Executive Brand Director for GE and GE Profile, who has made stops at Coca-Cola, P&G and Colgate Palmolive before landing in Louisville. Todd shares his experience at GEA and dives into some of the things he’s working on.