RETAIL INC

It’s going to be a “Camouflage Christmas” Jingle bells, Jingle bells, jingle all the way Oh, what fun it is to buy things we need today Jingle bells, jingle bells, jingle as we say I know you wanted a pc but here’s our new family tv!

SHOP-SA asked Robert Sadler, well-known retail guru, about so tips for selling over the Festive period. In his unique way, he is sharing his insights with us.

What is a “Camouflage Christmas”? This peak season will, in my opinion, be a gifting season where people camouflage things they need to buy as gifting. For example, the microwave is broken. We must have one but don’t have the disposable income to buy that and gifts. So, let’s camouflage the microwave as an Xmas gift!

We also know that schoolwear and equipment form a significant part of Xmas gifting amongst African consumers. Personally, I don’t subscribe to the view that the stationery industry is not part of peak trading. I do, however, think that the mindset of stationery retailers is fixed in that mode. What if we took the view that we were a key part of the Xmas trading season and planned accordingly? So, if you’re not already bored, read on! Understand the customers mindset. The secret to success in any commercial endeavour is to understand how the customer is feeling. What are they thinking? What are their key motivations in this moment? So, lets paint a picture of the average South African consumer: Under time pressure, cash strapped, concerned about the future, rising cost of living.

The trick is to offer promotions that alleviate those concerns. For example, concerned about the future? Your sales team emphasises reliability and warranty/ guarantees. Cash strapped? Price promotions that help reduce the stress and make shopping an easy, affordable, and enjoyable experience. No one likes spending money they don’t have!

Promotions during the peak season The most important words in retail now are “free” and “you save”. For example, “Buy 2 get one free” is the same as a 33%-off sale. It just sounds a lot more enticing - right? “You save” encourages multiple purchases i.e., “buy 3 and save R30”. I am always amazed at how few people actually work out that they are spending more in total, but hey, it works! Look at linking all your promotions to your loyalty programme.

“Combo” deals are another important weapon in increasing volume turnover link up complimenting items and offer a price incentive to buy more. Maximise the increased footfall Any peak season is the perfect time to increase your loyalty programme membership and, if you don’t have a loyalty programme, you’re losing the battle before you know you’re in the fight! Every major retailer I can think of has a rewards programme to encourage people to spend more money in their stores on a regular basis. A simple card and stamp system is very cost effective.

Pro tip: put a stamp in the first box to get people started!

Promote the loyalty programme aggressively through marketing (social media is free) in the store and at the point of sale - every transaction should start with “Are you a member of our loyalty programme?”

“Bring backs” are a promotional tool to encourage people to come back during your traditionally quiet times, i.e. 10% off any purchase in February. This technique encourages a return visit and, in conjunction with the loyalty programme, forms a powerful commercial tool.

What if there is no increased footfall? Then go find the customers! Virtually every mall I know has empty stores –consider a pop-up store with a paying operating costs and a percentage of turnover deal.

Understand the time frame

Before Black Friday became the retail sensation that it is, peak season trading started around the second week of December and finished after the January sales.

Today, everything is different. Black Friday is no longer a day, it’s a month and has fundamentally changed shopping habits.