A Guide for the Gritty Retailer
A candid conversation with Socksmith’s co-founder, Eric Gil, on what it takes to survive—and thrive—when retail gets rough.
After nearly four decades in retail and wholesale, Eric Gil has seen the industry through boom times, busts, and everything in between. From launching his very first shoe store in 1988 to scaling Socksmith to a internationally recognized brand, Eric has weathered every economic storm with grit, strategy, and a whole lot of socks.
We asked him to share the retail survival strategies he’s honed over nearly four decades in the business—what he called “from the heart and from too many years of thinking about what happens when things go wrong and how to escape with your life intact.”
Here’s what he had to say.
A candid conversation with Socksmith’s co-founder, Eric Gil, on what it takes to survive—and thrive—when retail gets rough.
After nearly four decades in retail and wholesale, Eric Gil has seen the industry through boom times, busts, and everything in between. From launching his very first shoe store in 1988 to scaling Socksmith to an internationally recognized brand, Eric has weathered every economic storm with grit, strategy, and a whole lot of socks.
We asked him to share the retail survival strategies he’s honed over nearly four decades in the business—what he called “from the heart and from too many years of thinking about what happens when things go wrong and how to escape with your life intact.”
Here’s what he had to say.
What's Inside:
Retail Survival Strategies That Actually Work
When margins get tight, raise prices. Period.
“If you can't hold a 55%+ gross margin, you'll be out of business within a year or two.”
According to Eric, profitability isn’t optional—it’s survival. If rising costs are squeezing your bottom line, pricing is the first thing to reevaluate. Discounts may drive short-term traffic, but without strong margins, you're digging yourself into a hole.
Build your mix around margin—not markdowns.
To stay profitable without relying on sales, stores need products that can carry a 55% or higher margin. That may mean rethinking your product assortment and cutting ties with low-margin brands.
“Accessories are what make most retailers I know work. Just saying—socks are a knockout product for turn rate and margin.”
Think like a three-legged stool.
Eric’s retail philosophy comes down to balance:
- A strong store environment
- Buyable, lifestyle-connected inventory
- Customer service that creates loyalty
All three matter equally, and none can stand alone.
Inventory Management for Tough Times
Inventory is everything. Especially now.
“Shrink inventory. Cancel orders. Don’t try anything new.”
When times get tight, inventory is the biggest lever you can pull. Focus on high-margin, fast-turning SKUs. Don’t gamble on new or unproven products until you’ve stabilized.
Use data, not gut feelings.
“If a SKU doesn’t sell at least 2–3x a year, get rid of it.”
Point-of-sale reporting is key to trimming dead weight and doubling down on what works. Socksmith’s own socks, for example, are expected to turn at least six times annually with margins over 58%.
Be direct with vendors.
Now’s the time to have hard conversations. Vendors pushing slow movers or low-margin goods need to understand what’s at stake: your survival.
Boosting Sales and Customer Experience
Tariffs? Rising costs? Your prices have to follow.
“Retail prices need to go up. We all need to survive in the meantime.”
Eric doesn’t sugarcoat it: If wholesale costs rise, retail pricing must rise too. The alternative is unsustainable—and short-lived.
Marketing without spending a dime? Get creative.
Instead of spending on ads, build foot traffic through community-driven experiences like:
Local musician nights
In-store wine or snack tastings
Book signings or maker meetups
Neighborhood shopping events or First Fridays
These events are low-cost, high-impact ways to build loyalty and visibility.
Perceived value starts with smart buying.
Even without discounts, retailers can offer value by choosing products that feel like the right mix of quality, price, and purpose.
“Socksmith socks are a great blend of quality, affordability, practical need, fun, and margins.”
Managing Your Team Through Lean Seasons
When cutting back, keep your culture.
“We cut hours first. But if someone doesn’t fit the culture, let them go.”
Good staff are hard to find—and worth holding onto. But maintaining a strong internal culture is non-negotiable. Everyone needs to be on the same page, especially when roles expand and resources shrink.
Hard times? Share your ‘why.’
Transparency builds trust. Whether it’s with your staff or your customers, letting them in on your values and vision can go a long way.
“The more everyone knows about you, the better.”
Small teams, big impact.
To keep morale high and operations smooth with a small team:
Cross-train staff so they understand multiple roles
Communicate your values and vision frequently
Celebrate small wins and let everyone see their impact
Make every role feel essential
Mindset Shifts for Long-Term Retail Survival
This isn’t the first storm—and it won’t be the last.
“This feels like 2008. We just hang on like everyone else.”
Eric’s seen recessions, housing crashes, and global pandemics. Each time, he and Ellen—the co-founder and creative force behind Socksmith—scaled back, got scrappy, and made it through.
The secret to lasting retail? Love your community.
“We loved Santa Cruz. We knew we were in it for the long haul.”
Stores that last aren’t just good at retail—they’re rooted in their communities. That connection is what fuels long-term success, especially when sales are slow and uncertainty looms.
Zoom out. Stay brave. Keep learning.
“Long-term thinking is everything.”
Eric credits Ellen with keeping his entrepreneurial instincts grounded. Over time, they learned how to manage inventory, build strong margins, and weather uncertainty as a team. He urges others to do the same—and to seek support from resources like Small Business Development Centers.
Final Thoughts
Retail is not for the faint of heart—but with the right survival strategies, you can build something meaningful that lasts. If there’s one message Eric wants to share, it’s this: you’re not alone. Lean on your community, tighten your numbers, and above all—believe that better days are ahead.
“Humans are flexible. This is just another trail to be hiked.”
If you’re a retailer looking to strengthen your margins, add fresh products with serious staying power, and partner with a brand that truly gets it— we’d love to work with you.
Rachel Blackwell
This post was written by the Socksmith marketing team based on a conversation with co-founder Eric Gil. His insights—equal parts candid and hard-won—continue to shape how we support our retail community.
FAQs
What kind of retailers does Socksmith work with?
We partner with a wide range of independent retailers—from boutiques and gift shops to bookstores, outdoor stores, and general apparel retailers. If your shop shares our love for quality, creativity, and great margins, we'd love to connect.
How do I apply to become a Socksmith retailer?
You can fill out a short application right here. Once submitted, our team will follow up promptly to get you set up and stocked with socks.
What are Socksmith’s wholesale margins?
Socksmith socks are designed to deliver high turn rates and strong margins. Most retailers enjoy margins of 58% or more —a key reason Eric recommends accessories like ours as inventory anchors.
How often does Socksmith release new designs?
We launch new collections seasonally, with fresh designs added throughout the year. Many of our retailers count on newness from us to keep displays fresh and customers coming back.
How can I tell if Socksmith would be a good fit for my store?
If your customers appreciate fun, expressive, well-made socks with a story, there’s a good chance Socksmith will resonate. We’re always happy to chat or send samples—just reach out!
Can I get help promoting Socksmith in my store?
Yes! We offer signage, lifestyle photography, and marketing assets to help you promote Socksmith in-store and online. Supporting our retailers is a top priority.
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