Tips to Win the Holiday Season
by Marc Weiss
“Baseball is 90% mental.
The other half is physical.”
-Yogi Berra
As we round into the final quarter of 2019, I am reminded of this famous quote by Yogi Berra. Multiple times a day, retailers will be bombarded with pundits spinning their prognostications on the holiday season. The digital world we live in makes this even more of a threat. The reason I am against these is that they are based on…what? And what is happening may not, and probably does not, have any bearing on how you will perform.
The NRF is predicting a 3.8% to 4.2% increase in holiday sales this year. This is just spin and a way to get publicity and attention. On top of that, retailers will have to continue to read about growing e-commerce sales which, by the way, represent a little less than 10% of all retail sales.
In 2018, U.S. retail sales were 6 trillion dollars. That is all you need to know. A huge amount of money is spent in retail every day and you need your piece of that pie.
The fact is, in good economies and struggling economies, good retailers find a way to win.
So here are my tips for staying focused and making the 2019 Holiday season a win.
1. Use data to make decisions.
If you cannot measure it, you cannot improve it. Anything that cannot be measured is an excuse, and should be ignored. My favorite of all time is from a store manager saying the reason her sales were down is because the mall security guard is not seeing as many shopping bags. (We had another retailer two doors down who was killing it.) You get what you believe. Losers look for excuses and winners look for reasons.
2. Set goals. Coach daily. And measure.
Average tickets.
Conversion rates. You should have a traffic counter so you do not have to hear about the security guard’s mythical tales.
Items per transaction.
Reward success!
3. Keep fresh goods arriving based on those classifications that are selling well.
4. Make your first markdown 50%.
Get out of mistakes faster and use that cash to buy newer, profitable goods. You will make up those markdowns faster than waiting until they go at 75 or 90% off. Decisions should be made based on sell through and period of time in the store. Remember, consumers are shopping 24/7 and have an appetite for freshness.
5. Know how to use Social Media to build your community.
6. Keep the accelerator on all the time and play offense.
7. Continually look for - and hire - good people.
Choose people who share your values, can build your business, and who you can connect to. If you do not want to have lunch or coffee with someone who works for you, they probably shouldn’t be there.
8. Know your numbers - both financially and from a merchandise budget.
9. Pay attention to your business and not what the press has to say.
They are in business to make headlines, not Retail Profits.
10. Stay positive and have fun.
Remove all negativity from conversations. The stress can beat you down or build you up. As Yogi Berra said, “Baseball is 90% mental.” The same is true for Retail. 90% of half the business is mental. The other half is everything else you do, and those decisions are based on your attitude.
Plan for Success.
Management One™ has a vast pool of talent and resources. Join the Management One™ community of retailers to help your reach Your Next Level.
ONWARDS & UPWARDS,
Mark Weiss
CEO and President
Management One™ and Retail ORBIT®