Retailers: Get past hurricane blues
In the horrific wake of Hurricanes Katrina and Rita, everyone's anxious about the impact on consumer spending as the all-important holiday season gets under way.
Some analysts are even talking Grinch. "We're looking at serious problems in the retail sector," predicts Britt Beemer at American's Research Group, a Charleston, S.C. consumer research firm. "It's likely to be the first negative Christmas selling season since Jimmy Carter was in office."
Pain in the pocketbook and ache in the heart
Fuel shortages are the main worry. "With gas over $3 a gallon and home heating turned on earlier than normal, consumers may have trouble paying bills," says Beemer. Plus, the weeks of agonizing video coming out of the Gulf Coast have made it hard to feel indulgent. The war in Iraq is also taking its toll on families and incomes while disaster clearly knows no season, as sadly proven by the catastrophic earthquake in Pakistan.
All in all, it doesn't quite add up to tinsel and glitter.
Build your holiday sales with these three strategies
What can small retailers do to put some jingle into this selling season? Here's a three-point plan to turn holiday blues into bling.
1. Make your Web site truly jolly.With stiff prices at the pump, holiday buyers are expected to shop closer to home, skipping trips to malls or far-flung discount centers. They're also going to let their fingers do the shopping. Online sales during the fourth quarter are predicted to hit $26 billion, up nearly 22% over last year, according to eMarketer, an Internet research firm. Most of that jump, says eMarketer, "will come at the expense of traditional channels as consumers shift spending from brick stores to Web sites." This is your heads-up. Begin developing online options for gift-giving research and e-commerce with this to-do list.
2. Bank on a Santa factor.Traditionally, the competitive edge for smaller retailers is customer service and the personal touch. Leverage this advantage. Hire a friendly Santa for your shop and then send out a postcard mailing to let families know when to bring in the kids. Or, consider these other value-added services appropriate for your wares that make life easy for your customers.
3. Draft a plan for the end game.The past few seasons have seen a surge of last-minute gift buying as retailers and consumers wait to see who blinks first in the annual battle of price versus selection. Last year, the 10 days before Christmas turned out to be very strong, despite lackluster sales in the previous weeks. Say hello to the just-in-time lifestyle. If you're still playing by the old rules, now's the time to get a new playbook. These tactics can help boost your down-to-the-wire revenue.
There is still time to invest some cheer in your holiday marketing plans. Just get moving now.