Instore Magazine • May 2025 • Kyle Bullock

Finally, after months of tears and headaches, a new masterpiece sparkled to life.

AUTHENTICITY is a local retailer’s greatest asset — and AI can’t deliver it. Customers crave real connections, not algorithm-driven interactions. While AI may promise efficiency, it can’t replace genuine storytelling, personal engagement, and the magic of a human touch. Don’t trade authenticity for automation — AI is important, but it has its place.

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Steal these strategies from successful corporations to stay lean, mean and profitable

OH, HOW THE mighty fall. Signet Jewelers — the parent company to Kay’s, Zales, Jared and Blue Nile — reported poor profits after last Christmas and their stock dropped nearly half its value in only a few short weeks. Independent jewelers everywhere smirked. The big dog came up short and the indie guy was there to take the profits.

Don’t celebrate for long, though. Your competition is gearing up for a comeback.

Over the coming months, Signet will be taking steps to regain its footing. Don’t underestimate their ability to do this, either. You don’t become the big dog without being great at what you do.

Signet is cutting expenses, especially in senior leadership. They are moving away from brands and exploring merchandise that carry bigger profit margins. They will be personally reconnecting with the customer for a tailored experience. And they have millions in their pocket to lead an innovative charge forward.

Other big brands are taking similar measures. Starbucks is simplifying its menu and services. Red Lobster and Darden Restaurants (think Olive Garden) have already started, commanding greater profits. Here are three strategies from these innovative companies that we can copy to stay ahead of them.

1. Reduce Debt. Both Signet and Darden paid down more debt last year than in the three previous years combined. They used cash-in-hand to lower their liability. You do the same. Liquidate what is not working — stock over 5 years old, for example — and pay down your debt. Less debt means more in the bank. More in the bank means more interest you earn than interest you pay back.

2. Invest in Profit Products. Signet is exploring inventory that will command better-than-average profit because this is where the greatest opportunity to grow lies. If your gross profit isn’t at 55% or greater, start moving in that direction now. If you have a line or vendor commanding less than that, consider increasing that line’s margin or replacing it altogether.

3. Get Back to Basics. Why did Starbucks, Red Lobster, and Olive Garden reduce their menus? To serve their core items faster and more efficiently. As a small business, focus on your core offerings this year. Anything outside of the core business will get in the way of doing what you do best. Consider outsourcing, delegating, or dropping these areas altogether so your time isn’t divided among less-performing categories.

KYLE BULLOCK is a small business retailer, consultant, and partner with trainretailmanagement.com. For over 10 years, Train Retail has offered practical, low-cost training solutions for retailers to build stronger kyle@trainretail.com