With economic uncertainty becoming the new normal, retail businesses – whether online, high street, or a hybrid – must act now to strengthen their foundations. While you can’t control the economy, you can control how well-prepared your business is to weather the storm.
Here’s a more detailed and action-focused look at what you can do:
1. Double Down on Digital, But Do It Strategically
Retailers that had robust digital systems in place before COVID were the ones who adapted fastest. This isn’t just about having an ecommerce website – it’s about ensuring your entire digital infrastructure works together.
- Audit your current digital setup – POS, inventory, CRM, ecommerce, email marketing – and identify where integrations are missing or underused.
- Use automation to reduce manual processes and human error.
- Ensure your website is mobile-friendly, fast-loading and optimised for search engines – especially if local search matters to you.
Need help reviewing your digital stack? We can guide you on affordable improvements that have real ROI.
2. Unify Your Sales Channels and Get Smarter with Stock
Omnichannel is more than a buzzword – it’s a survival tactic. Customers want flexibility, and your systems need to keep up.
- Sync stock levels across all sales channels to avoid overselling.
- Offer flexible fulfilment: click and collect, home delivery, in-store pickup – and make it seamless.
- Use data from one channel to inform decisions in others, like using website browsing behaviour to trigger in-store promotions or vice versa.
3. Lean Isn’t Just About Cutting Costs – It’s About Smart Spending
Now is the time to get forensic with your outgoings.
- Scrutinise every subscription and recurring payment. Are you still using that software? Is there a better alternative?
- Shift spending towards revenue-generating or customer-retaining activities – like loyalty programmes or upselling tools.
- Ask your team for ideas. They often know where waste is happening, and bringing them into the process builds morale and buy-in.
4. Put Customer Loyalty Front and Centre
When people have less money to spend, they become more selective. Retailers that build relationships, not just transactions, will win out.
- Use personalised emails, thank-you messages, and follow-up offers to stay front-of-mind.
- Leverage social media to tell stories, not just push products.
- Consider loyalty points, member-only deals or exclusive content to keep shoppers engaged.
Tip: Don’t assume what your customers want – ask them. Quick surveys or polls via email or social are gold dust.
5. Refresh Your Value Proposition
Your messaging needs to shift with the times. Are you offering value, or just selling things?
- Reposition products around durability, practicality or savings where appropriate.
- Highlight bundles or ‘buy more, save more’ options.
- Test different messages: does “everyday essentials” resonate more than “luxury treats” right now?
People still buy in a recession – but they buy differently. Tap into that mindset.
6. Build a Cash Buffer While You Can
A strong cash position is your best insurance policy.
- Set a goal to have at least 10% of your annual turnover in cash reserves – more if possible.
- Create a rolling 13-week cash flow forecast and update it weekly.
- Be realistic about delayed payments, slower stock turnover, and changes in customer behaviour.
Bonus: This is also the time to revisit credit control processes and reduce your reliance on any single supplier.
You Don’t Have to Do It All Alone
It can feel overwhelming, especially if you’re spinning all the plates. But the good news is, many of these changes are incremental. Focus on what’s in your control, and prioritise the areas where you’ll get the most immediate return.
At Holden Associates, we work with retail businesses across the UK to make sure their financial setup supports sustainable growth, not just survival. Whether you need help refining your short-term tactics or developing a long-term strategy, we’re here to help.
Let’s talk about how to make your business recession-ready and future-proof.
