Outcalt & Johnson: Retail Strategists, LLC
  • Home
  • Perspectives (Blog)
  • Thought Leaders
    • Retailers Hold the High Cards Now
    • Coming Soon: Impending Blight
    • Amazon's Relentless Disruptiveness
    • 3 Levels of Retail Accountability
    • 9 Steps to a Retail Growth Plan
    • Turnaround Case Study
    • Follow on Twitter
  • Innovative Team
  • When to Call Them
  • What They Do, and How
    • Strategic Retailing
    • Sell My Store, Please!
    • Retail Turnaround Experts
  • Projects by Client Type, Size, Location, etc
    • Crisis/Turnaround
    • Assessments/Action Plans
    • Owner Issues/Organizational Development
    • Growth Management/Target Marketing & Merchandising
    • Financial/Restructuring
  • Links to Recent Clients
  • About
    • Bios/Credentials >
      • What People Say About Them
    • Co-Founders, The Retail Owners Institute®
    • Retail STRATA:G® Online Resources
    • Get to Know Them: Online Webinars
    • Retail Speakers
    • Custom Webinars
  • Contact

Strong Waves Incoming. Ready to Take Advantage?

12/14/2020

 
Picture
This Holiday season is bringing three big waves for retailers, in rapid succession. And each one requires a strikingly different management response. 

Wave #1 - the High Margin Wave - has begun in earnest, and will continue through Christmas Eve.
Faced with the shipping delays (and surcharges), customers have turned to brick-and-mortar stores. The savvy retailers are ready for them.
  • Customers will want plenty of reassurance of your health safety procedures. There's a virus out there, remember?

  • Some stores may offer shopping-by-appointment, much like scheduling a dinner reservation (remember those?) This allows essentially private shopping for some customers.

  • Curbside or in-store pickup will appeal to many, and is important to offer. But it does reduce the opportunity for add-on purchases. Where you place your in-store pickup can make a big difference.

That's why this is the time where merchants will have tucked away all the off-price merchandise, showcasing only the full margin goods. Unleash your merchant instincts! That sweater you've been offering at $60? Mark it to $65! Customers know that for Christmas to happen, they must and will buy now.

Wave #2 - the "I got it on sale!" Wave - starts Saturday, December 26.
All that merchandise you tucked away during the first wave? Now it is back, with extra sharp markdowns. 
  • Those customers who love the after-Christmas sales, plus gift card recipients in search of bargains, will be very active on that weekend.

  • Be ready for them. What they really are after is bragging rights of what a great deal they got! 

  • And remember, the first markdown is the cheapest. Your goal is to raise as much cash as you can.

Wave #3 - the "Many happy returns?!" Wave - is the undertow that could become a tsunami. 
Brace yourself. The rate of returns of merchandise purchased online is about 4 times higher than a retailer's typical return rate.

Come January, customers seeking to return or exchange merchandise they received (or self-gifted) at Christmas could feel like a stampede. And difficult for your staff to keep smiles on their faces. (Another good reason to wear a mask!)
  • Now is the time to think through your policies for returns and exchanges, and make them very clear from the outset. Avoid surprises. 

  • The Coronavirus compounds this issue, given the matter of safely handling merchandise that comes back. 

  • But it will be a great opportunity to interact with your current customers and potentially many new ones. Seize the chance to impress them.

Watch for the three separate waves. And don't get seasick!
​

©Copyright, Outcalt & Johnson: Retail Strategists, LLC and The Retail Owners Institute®

Comments are closed.

    Tips, Tactics & Insights  from Retail Strategists

    All
    Culture
    Financial Strength
    General
    Inventory Management
    Leadership
    Owner's Responsibilities
    Pandemic
    Perspective
    Retail Growth
    Retail Projections
    Strategic Opportunities

Services
Perspectives
Thought Leaders
Contact

About
Outcalt & Johnson: Retail Strategists, LLC • A Consulting Team for the Retail Industry