I hope to post a monthly strategy that has worked for other retailers and could possibly benefit you. Please note that I always get the account's ok to post these so I am giving away no corporate secrets.

This month's post concerns every retailer's worst problem: Obsolete inventory!

There is an account that has a unique way of dealing with obsolete inventory. Twice a year, he "rents" out a Church across from his store. On July 4th and January 1st, he holds the Mother of all sales! He starts the day at 7:00 a.m. with product marked at 55% off. By noon, the product gets marked to 75% off. By 4 p.m., all products are either $10 or $5. Whatever is left over gets donated to the Church. This retailer cleans out product, generates cash that he may need to pay off any outstanding receivables, creates goodwill in the community with donations, and gets the space rent free along with free advertising in the Church bulletin and outside board. According to the owner, he chose the dates noting, "Nothing else is open in town and most men on January 1 are watching football or sleeping".

To this particular retailer, I say — Brilliant!

Twig will be spotlighting one retailer a month. For our very first "branch", I am honored to highlight Shoe Train in Potomac, MD. Ed the owner has been a constant support for Twig since I began. Ed knows his stuff from a fit and finish perspective. I am not ashamed to say that Ed passed on some early seasons of Twig because he did not feel the product was right. He took the time to critique each pattern, and even though I know he felt disappointed he could not support the brand, he did not buy. I very much appreciated Ed's candor and thank him for his advice. This is a short history of Shoe Train:

We opened March 1979. As an underprivileged child I got a job at sixteen. I was able to learn programming and in my late teens also became a computer analyst. While in the army my primary function was as a Computer Analyst stationed at the Presidio Of San Francisco. Upon discharge from the army, I knew I wanted to explore other opportunities. I got a full time job in a Children's shoe store in Bethesda Maryland while going to college. I enjoyed the interaction with clients but most importantly working with children is very special.

Ed also has a large "special needs" business. Having witnessed these customers first hand, I can tell you that it takes a special person to have the patience to work in this environment. Most of these customers come in and ask for Ed by name.

Many vendors seek Ed's advice on product direction, and I can tell you that Ed shoots straight and does not pull punches. I am most grateful to Ed.

This section is dedicated to you. If you were the owner of a shoe company, what you would you do differently? Where are the product opportunities? What do you wish you could tell shoe companies that you never have? I would love to hear your thoughts! Please email me at Ken@twigfootwear.com. I can promise you that every email will get a personal response. I will post the most creative and include your name if you desire.

I hope you're all gearing up for a strong 2010. Twig is!