Retail readiness... Retail is in the detail... Christmas is coming..READY??
For retailers that have checked, double checked, reviewed, written post-Christmas documents around key learning’s from the past year – and how to ensure that next Christmas is even more successful that the one just passed.
The teams then go into overdrive around campaigns, stock, web and stores schedule how this should be implemented and executed with military precision!
Then – something that although was always in the back ground since the start of 2008 – an imminent recession!
The impact of this across retail and other sectors is significant. However as retail rely on a huge amount of their business at key holiday seasons - Christmas & Easter - then the continued viability of some retailers can hang on a single successful Christmas period – of which if you are not prepared could ultimately cause the demise by the time the needles have dropped off the tree and turkey has been gobbled up.
What to watch out for during a recession
PRICE – PRICE - PRICE – so crucial that I named it thrice! Indeed with wallets being tightened within an inch of their very being price will be a major factor in deciding what and where to shop. There are other factors that are effecting this recession, such as high petrol prices – so here are some pointers on the behaviour patterns:
Stock & Campaigns
Price is the focus here – so ensure that your best offers are communicated across the marketing and advertising channels that you are using. No point in having that ultimate gift on a key display point – if the consumer is always thinking about the price and cost of goods. Don’t make it look like a tacky sale point – it takes a few scared retailers to scream SALE and this always has an a negative effect on all retailers – as the consumer thinks that the January sales have suddenly hit early and will ultimately look for even cheaper bargains and offers. So stay clear of SALES – use your messaging and pricing as key indicators that you are aware of the credit crunch and your prices reflect what is happening out there. Keep the Christmas spirit alive and keep upbeat – this is time where although “penny pinching” will be in full effect – entice them into a warm and inviting environment that is price conscious, well staffed, happy to help and assist and get the best out of the consumer who ultimately will leave a happy shopper and you as a happy retailer – if you have done your homework.
Web and other channels
The web has similar properties – but is faceless to the point that consumers could, and do enter your store at any point in the day or night to do a spot of shopping or price comparison – so make sure that your site is well maintained and available! (downtimes should always be kept until 3.00am) Deliver crystal clear messaging around P&P, shipping, estimated delivery dates – think of worst case scenarios, because if you use Royal Mail for example – you will be competing with the millions of packages per day that they will need to handle and process and deliver – so be realistic and your customer will reward you with returned loyalty – over promise and under deliver (or fail to deliver) then you will become victim of the consumers wrath.
360 Retail
The 360 Retail that I have been talking about for the past few weeks is key here, in that if you have a high street or just a bricks and mortar estate – make sure that the same principles apply on the channels that you sell through as well. Be this website, kiosk, mobile, catalogue, floor space within a department store even to the point that you have a small stall in a shopping mall with a supporting website – all areas here are critical that you deliver a fully rounded experience from entry to exit. As simple as local paper advert to national TV advertising – whatever was the entry point ensure that this a clear concise message that the consumer can relate to and is greeted with when entering the retailers point of contact with the consumer. Let’s face it if you have attracted then thus far and enticed them to come and visit you – don’t let them down with irrelevant offers or conflicting messaging – For example if you advertise that you have a flat panel 32” LCD TV that is half price – make sure that you have this item as a key focal point either in your store, online etc.. I may sound simplistic and almost Retail 1.1 – however I have seen so many retailers fail to keep their marketing promise and the offer that they enticed the consumer in with is no longer there or has been replaced with a slightly more expensive (or higher margin) product that will ultimately annoy the consumer and almost immediately leave. You can cross sell, up sell and co-promote other offers and suggestions but learn the 360 Retail rule by delivering what you are promising from beginning to end.
Out of Town Complexes
Some consumers will look to some of these retail outlets as a key opportunity to get all their shopping in one fatal swoop. So expect a horde of shoppers that have travelled there for a one hit visit – a list as long as...well Santa’s list! They will not want to leave until all the names on the list have been ticked and checked twice. They may decide to plan the entire day there to be sure – kids could be at Nans or even a babysitter booked to ensure a pure focus on shopping. So retailers have to be ready at this point to cater for the consumers and to some point – look toward the channels that they have available to them. If what the consumer is looking for is no longer on the shelves, not arrived yet, failed to appear in the last delivery – size the opportunity – do not let the consumer out the store without trying all available avenues to you to be sure that you have secured that sale and not your rival / competitor. This could be as simple as taking their order, and telephone number to call the customer when it arrives and then arrange an over the phone transaction and send the item to the customer. If you have a website – check availability on there and help them create an order there and then to guarantee the customer will receive their goods before the big day. Give them options, alternatives speak to them understand what they are looking for and entice information out of them – see my last post around Operations – to engage with consumers – they don’t bite and do prefer face to face communication. This will be one of the biggest threats to retail this year – staffing – easiest element of the business to keep low and ask the staff that are there to “push harder” – but if your staff are talking, advising, dealing with your customers – who is ringing through the transactions? Never underestimate the staffing value
Traditional High Street
In that same light due to petrol prices and other factors some will avoid these and opt for the traditional high street (that after my earlier blog in the Summer showed that things are not great there) where they can “pop” in to their local high street to do their shopping in comfort of their own surroundings or closest town to do their shopping. Again the key factors are the same as the out of town experiences – but more so as I know of a few key traditional high street retailers that are on the brink of collapse and will need a really good Christmas to survive – so complacency has no part in this Christmas trade. I fear that this Christmas we will see a good deal of these retailers fail to meet their targets and vanish off the high street for good – they will blame the web and online – but I think that looking at their proposition, location, stock and effectiveness to compete ion 21st century retailing will be the factors here and not just the web.
Exchanges, Returns, Refunds...err!! (ERR)
Is that not the normal response that consumer face in today’s retail climate when they ask for an exchange or refund? Sales Assistant first words “err....”
This is the time of the year that retailers will see consumers that for the other 51 weeks of the year have not been to your store / site. To ensure that you are not immediately alienating these new consumers and that if they are unsure that you are the best or correct fit for their Christmas shopping needs – you may have completed or about to complete your transaction due to following all the above steps – but just at point of purchase the “err” question arises – “if this is not suitable, not the right one, not the left one... can I.....”
The high street has been awash with reports and research that consumers have not been best pleases shall we say around some of the latest “ERR” positions of retailers. This will be due to return rates, impact on their bottom line, speed of turning these returned items around and a whole host of other issues (especially in Entertainment Retail where piracy has led to a massive push back on consumers) However looking at the 360 Retail model again – if you want loyalty and a return customer – do you really want to alienate them?
Summary
So what has been unearthed from these words of wisdom? Nothing revolutionary I guess (one would hope) however where retailers are trying to get everything in place for the beginning of Christmas – perhaps some of these key points have been overlooked or not even on the radar. So quick coffee break moment:
Reload, Refresh, Review: at your forthcoming Christmas line up – does it still hold value and a comprehensive offer that is aimed at a much more price conscious consumer
eCommerce, e-tailing, e-store: the web will grow even bigger this year with industry experts declaring an estimated 20% lift on last year – which will place strain and endurance tests on even the most robust eCommerce platform. Get ready by evaluating your platform NOW! Invest in some load testing, analyse your analysis’, ensure that you have enough bandwidth available – speak to your hosting company about your previous peaks and look to have additional bandwidth or burstable bandwidth.
Tailor your campaigns, offers and Christmas strategy around the current climate around financial instability and uncertainty. Consumers will look to give themselves a feel good factor at Christmas – but not at a cost that could cripple their finances.
Analysis, Analytics, Action: Look at your stats (this covers both web and physical stores) they will give you an ideal picture of what has happened in your business over the last 9 months – in the run up to the peak trade moment. What are your like for like sales showing? How are you figures year to date? Budgets – achievable or are you way out on these? Re-forecast to ensure high levels of productivity within your business by showing newly defined targets and goals that could, must be achieved. Amazing what realistic targets can do to a team!
Inspire: your consumers and potential consumers by delivering an inspiring Christmas that looks after their finances by delivering value for money and quality – but inspire with products and service that will leave a permanent impression post-economic slowdown. It may well be a time to watch the pennies, but there is no need to make everything look and feel that it is on the cheap side.
Listen, Look and Learn: we all need to continue to learn and grow. Look at what your competition is doing both right and wrong. Compare that to what you do rightly or wrongly. Ask for help and advice – what you already know and have used previously may no longer be relevant or current in this retail space. That could be as little as 12 months ago. Back to basics – 360 Retail is a great way of establishing your entire offer – from Entry > Exit > Return
Although you will read, see and hear that Christmas 2008 is a “belt and braces” time, yes it will be a tough ride, following some of these rules and guide notes will ultimately leave you post-Christmas ready for the immediate challenges that lie ahead in 2009 – but at least you may well be one of the retailer winners that get to face 2009!
Have A Merry & Successful Christmas 2008
