Chain Store Age

18 May 2015

The strong U.S. dollar is weighing heavily on today's global brands. While raising prices overseas is an easy lever to pull, it's not the most effective one. In a contributed Chain Store Age article, Brian Ehrig, retail strategist at Kurt Salmon, explains how retailers can improve profitability and brave the currency storm: “While cutting prices may be a nonstarter, a more sustainable solution with minimal consumer impact would be to strategically pare back SG&A spending — the selling, general and administrative services that can easily account for as much as 10% of a corporation’s expenses.” Ehrig adds, “Strategically reducing costs by addressing the inefficiencies created by recent industry shifts can provide companies with a highly effective buffer — and a quick way of realizing significant savings. There’s no need to wait until the headwinds die down.”

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