PERSPECTIVES

From The Co-Founders

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Tips, Tactics & Strategic Insights and Commentary
from The ROI Co-Founders, Pat Johnson and Dick Outcalt
Outcalt & Johnson: Retail Strategists LLC; Retail Turnaround Experts

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Christmas Week Is Only 90 Days Away. Amazing, or What?!

Consider this: Will this Holiday Season happen... 

  • In traditional RETAIL Time? 
  • Or always-on INTERNET Time? 
  • Or, the grinding PANDEMIC Time? 
  • Or, some combination of all of it?

What a 90 days it will be! 

Remember July and early August, when there was much optimism? 

  • Consumers were excitedly resuming in-store shopping and dining. 
  • Social gatherings were increasing. 
  • Pent up demand was high. 
  • And shoppers were eager to make this year extra special to compensate for last year. 

Then, the Delta variant surged. 

  • And the accompanying uncertainty has wreaked havoc. 
  • While the stock markets are reacting downward to the uncertainty, the more meaningful indicator for retailers – Consumer Confidence –  is at its lowest level in nine years. Ugh!

But amidst all this is the resilience of retailers and shoppers alike. 

The majority of people are vaccinated, and determined to put the pandemics behind them. Enough already, they're saying! We have people to see and family and friendships to celebrate. And they are shopping early. This could be fantastic!

This 2021 Holiday Season will be all about relationships. Your customers are counting on you to help them make this year special.

All those new ways that you established during the pandemics to be connected with your customers? This is the time for them to shine! Use emails and texts and social media to keep your customers personally aware:

  • the unique and special merchandise you have;
  • your added conveniences of online ordering or curbside pickup;
  • the safe shopping environment you offer;
  • your knowledgeable staff; 
  • and others that are proprietary to your stores.

Your shoppers already know that this year is different. They know that inventories are tight, and there are fewer retailers to choose from. And they are shopping early! They likely won't be driven by Black Friday specials and early season discounts. They want special, and many are willing and able to pay for it.

Indeed, it looks like 2021 will bring a Holiday Season like no other. 

Related Articles

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    Bold Way To Improve Productivity 

    As we look around, we see a popular cost-saving and productivity-boosting tactic being instituted by many national retailers, shopping malls, and restaurants. They are open fewer hours. 

    This offers an opportunity for you to revisit your store hours and employee scheduling practices. Maybe it's time to consider some changes, if you haven't already. 

    Your customers have voted with their feet. Your goal is to see what patterns there are in their shopping visits. (This could be a fine project for a summer employee home from college.)

    Start small; focus on , say, the last four weeks of data collected by your POS system. But this time, produce reports by the day of the week. Yep, seven columns of data. Wait till you see what it can reveal!

  • COVID-19 thumbs/ReadySetGo2.png

    Just a few more days until...the 26th!

    The savvy retailers know that now is the time to be putting the finishing touches on – wait for it – being ready for December 26!

    Yes, this unique time period between December 26 and New Year's Day is a tremendous make-or-break opportunity. Indeed, many retailers find they net more from this time than any earlier stretch of 6-10 days!


    Why? Three main reasons.

    First, the many opportunities to reduce expenses "back to normal". Less advertising cost. Less staff. Fewer hours.

  • COVID-19 thumbs/foggy.jpeg

    The Lingering Days of Summer

    Since Labor Day in the US is the first Monday in September, this year it happens as late as possible. Labor Day will not be celebrated until next Monday, September 7. 

    Most years, most folks would be perfectly happy to have August stretched out even longer. Ahh, those lazy, hazy, crazy days of summer, right?

    • Well, we DO have the "crazy" part down pretty well. And "hazy" rings true too, as the fog of uncertainty persists.
    • And now, imagine it: a Zoom Thanksgiving... OMG!

    And so, meanwhile, we regard Consumer Confidence as THE key indicator of consumer spending. Just last week, the Conference Board reported that Consumer confidence is at a six year low*. Ouch!

    But, was that a surprise to retailers? Not really. Most retailers are well along in coping with these challenges. 

  • retailclock2.png

    Continuing Flexibility Test

    As we introduced previously, the New Normal for retailers is already here. It is a new "retail clock." 

    • "As the global efforts to "flatten the curve" of the coronavirus pandemic continue, there is another curve that is being flattened. That would be the seasonality of retail sales. 

      "And this may prove to be what really defines the New Normal for retailers. 

      "The customary peaks of retail spending have been flattened."

    Of course, it is not just retailers who have been affected; the shoppers also have been adapting. But whereas retailers think in terms of seasons (weeks and months), the shoppers are adjusting their patterns at the daily and weekly level.

  • Thanksgiving Is "Late" This Year

     

    "Christmas will be here before you know it."

    Well, actually, Christmas will be here the same time it always is: December 25. 

    However, what does change are the cues for the shoppers. 

    That is, Thanksgiving falls as late as it can this year, on November 28. That means, for those keeping score at home and for the breathless business pundits, there are only 26 shopping days between Thanksgiving and Christmas. This is six days shorter than a year ago, and the shortest since 2019.

    That's why some retailers, especially those that are publicly traded, are making mighty efforts to lengthen the shopping season. 

    But, is there actual value in trying to prompt shoppers to start their Christmas shopping before they have even handed out Halloween candy? Yes, but...

  • What's Behind Those Top Line Numbers?

    Need Perspective on Your Sales Numbers? Here's How to Look Behind the Top Line

    Consider this retailer, whose sales over the last 4 weeks are down sharply compared to last year.

    Some retailers in this situation essentially freak out. But the pros, like you, know to keep asking questions. Before they decide what to do next to fix lagging sales, they want to know "Why?"

    So, rather than guess the answer, here is a way to get to the numbers behind the numbers; to begin to know the "why" of your sales trends, whether they’re falling or rising.

    All it takes is tapping into the data that's already in your POS system, and putting together a little summary tally sheet. The point is to get some key data together in one place so you can easily, quickly, and for free, compare and analyze your results.



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