Footwear Insight

22 • Footwear Insight ~ June 2020 footwearinsight.com THE BACK END ISN'T BUSINESS AS USUAL 3 For many businesses, decisions on buying, marking down and future orders are being reevaluated using a completely overhauled set of criteria. We've kept people employed, we're communicating more than we ever did and we're managing cash flow better than ever before." Adam Beck, Beck's Shoes M ultiple retailers told Footwear Insight that the shutdown had made liquidity a top prior- ity for the foreseeable future. CARES Act funds have been a bridge, although many retailers said planning for longer-term viability will require multiple approaches. At Wesley's Shoes in Chicago, owner Bruce Wesley said being approved for the Paycheck Protection Program as well as the SBA's Economic Injury Disaster Loan programs have helped rebuild the busi- ness, but that rent abatements from the University of Chicago (the store's land- lord) and working with vendor partners have been critical. Alan's Shoes' Miklofsky said most stores will need to think differently for at least the balance of 2020, maintaining liquidity to keep their merchandise mix appropri- ate and meet business needs. "The overall equation is that it's less about profit this year than it is about cash flow," he said. "Cash is king, and you'll need to hoard or obtain as much cash as possible to get through the year." "The no. 1 takeaway is cash flow, cash flow, cash flow," Beck agreed. But Beck said his shop has seen a silver lining in the struggles. "Company morale is at an all- time high. We've kept people employed, we're communicating more than we ever did and we're managing cash flow better than ever before," he said. "It's been a lot to take in, but we're going to be better business people because of the pandemic." l The Beck's Shoes sales floor. Felger's Footwear THE PANDEMIC AND SHUTDOWN'S LASTING EFFECTS

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