"I'm telling you, it is going to be a bloody Christmas. The vast majority of people are maxed out." Rich Kizer, Retail ConsultantBlack Friday and Cyber Monday – the initial holiday whirlwind – might be over, but now we’ve entered a new selling period. We call it “The Stage”; the time when we are able to gage how aggressive retailers will be in the weeks following Thanksgiving weekend.
Just before Black Friday, in an interview in the Las Vegas Business Press (http://www.lvbusinesspress.com/articles/2008/12/01/news/iq_25369700.txt), we said that Christmas this year would be a bloody sales period, meaning that stores would be very aggressive in order to reduce inventories and get their share of retail sales; this at a costly profit premium, thus the “bloody” side of the picture. Now we’re seeing it happen; the amount of direct mail pieces arriving in mailboxes is enormous. The “Biggest One Say Sale Ever!” is followed a week later by “Our Biggest One Day Sale in History!” We understand. It’s the old retail adage “If you miss out on sales in December, you will never get them back.”
Customer Conscience
Customers are very aware of what’s going on. We’ve all heard the terms “customer satisfaction”, “customer skepticism”, “customer driven”, and so on. Now we have to add “Customer Conscience” as thrilled, yet dumbfounded, customers tell us they’ve been able to combine multiple offerings and spend just $7.00 on items that normally retail for $28.00 or more. JC Penney has a coupon out right now that allows shoppers to save $10.00 on any item priced at $10.00 or more, and associates tell us shoppers are lining up to get $12 items for two bucks. But for the first time ever we’re hearing customers say, “With great deals like this, I sure hope the store will still be in business after the holidays.” It’s a different world and customers are on your side.
Watch Your Inventory!
Right now, we urge you to control your inventories. Be creative in moving merchandise that must moved before December 26. Remember, it’s much easier to sell anything in December while the store is busy – and the markdowns you take now are much cheaper than markdowns taken in January and February. We want you to make money! A stagnate inventory can kill your cash flow.
Get Ready for Returns
The day after Christmas is coming, and so are customers bearing returns. Your job is to train everyone in the store on how to handle these returns, and the training needs to start right now. You cannot afford to wait until December 26!
Train associates not to automatically ask if the customer would like a refund. Instead, tell your associates to offer an exchange, as in “I can hold this behind the counter for you while you look for another item.”
In your training session, encourage associates to build a mental list of exchange item candidates; better yet, you create a list they can build on. Post your Suggested Exchange Items List at each register and at your service counters. Your goal here is two fold: you do not want to lose the sale dollars you’ve already earned, and you want to keep your customers happy. If a customer can’t find an exchange item they like then offer that customer a gift card. Point out that new merchandise arrives in your store every week. Traditionally, gift cards generate up to two times their face value.
Yes, you are up to your ears in holiday sales, but your focus needs to be on the future – start working on it now.
Just before Black Friday, in an interview in the Las Vegas Business Press (http://www.lvbusinesspress.com/articles/2008/12/01/news/iq_25369700.txt), we said that Christmas this year would be a bloody sales period, meaning that stores would be very aggressive in order to reduce inventories and get their share of retail sales; this at a costly profit premium, thus the “bloody” side of the picture. Now we’re seeing it happen; the amount of direct mail pieces arriving in mailboxes is enormous. The “Biggest One Say Sale Ever!” is followed a week later by “Our Biggest One Day Sale in History!” We understand. It’s the old retail adage “If you miss out on sales in December, you will never get them back.”
Customer Conscience
Customers are very aware of what’s going on. We’ve all heard the terms “customer satisfaction”, “customer skepticism”, “customer driven”, and so on. Now we have to add “Customer Conscience” as thrilled, yet dumbfounded, customers tell us they’ve been able to combine multiple offerings and spend just $7.00 on items that normally retail for $28.00 or more. JC Penney has a coupon out right now that allows shoppers to save $10.00 on any item priced at $10.00 or more, and associates tell us shoppers are lining up to get $12 items for two bucks. But for the first time ever we’re hearing customers say, “With great deals like this, I sure hope the store will still be in business after the holidays.” It’s a different world and customers are on your side.
Watch Your Inventory!
Right now, we urge you to control your inventories. Be creative in moving merchandise that must moved before December 26. Remember, it’s much easier to sell anything in December while the store is busy – and the markdowns you take now are much cheaper than markdowns taken in January and February. We want you to make money! A stagnate inventory can kill your cash flow.
Get Ready for Returns
The day after Christmas is coming, and so are customers bearing returns. Your job is to train everyone in the store on how to handle these returns, and the training needs to start right now. You cannot afford to wait until December 26!
Train associates not to automatically ask if the customer would like a refund. Instead, tell your associates to offer an exchange, as in “I can hold this behind the counter for you while you look for another item.”
In your training session, encourage associates to build a mental list of exchange item candidates; better yet, you create a list they can build on. Post your Suggested Exchange Items List at each register and at your service counters. Your goal here is two fold: you do not want to lose the sale dollars you’ve already earned, and you want to keep your customers happy. If a customer can’t find an exchange item they like then offer that customer a gift card. Point out that new merchandise arrives in your store every week. Traditionally, gift cards generate up to two times their face value.
Yes, you are up to your ears in holiday sales, but your focus needs to be on the future – start working on it now.
