Maximizing shoulder season success: Strategies for profitable seasonal transitions
All retailers focus on the rush of the peak season – the holidays, back-to-school, or the summer sales. But what about those quieter in-between months, known commonly as the shoulder seasons?
This transitional period can present challenges, but with the right strategy, it can also be a chance to clear out excess inventory, streamline operations and introduce new products to prepare for the peak season.
POS systems for retail and inventory management software can truly streamline operations and improve profitability by providing real-time data for retailers to make smarter decisions during these gaps. In fact, global spend on such retail technology is forecast to grow 10% each year between 2024 and 2028 according to PwC.
Here are 3 practical ways to maximize the shoulder season and smoothly transition seasons profitability with effective retail technology.
1. Optimize Inventory with Real-Time Data
During the shoulder season, inventory management is key to maintaining profitability across your operations, allowing for adjustments based on current trends, reducing excess inventory, and ensuring that cash flow isn’t tied up in unsold goods.
By using POS data to track sales in real-time, retailers can quickly identify which items are underperforming. For example, if certain products are consistently slow-moving, retailers can reduce their stock or offer targeted promotions to move these items faster before the next busy period.
2. Leverage Technology for Targeted Promotions
Another way to maximize profitability in the shoulder season is by offering targeted promotions that align with customer preferences and clear out seasonal items.
By analyzing purchase history through POS systems, retailers can segment their customer base and create personalized offers for different groups. For example, loyal customers may appreciate early access to discounts on next season’s products, while others might respond well to clearance sales on slow-moving inventory.
Inventory management systems can also help keep track of what's being promoted, ensuring that stock is available and that promotions are timely.
3. Prepare for Peak Season with Data-Driven Forecasting
The shoulder season is also an ideal time to start preparing for the next peak. Retailers can use inventory management software to analyze data from previous seasons and forecast demand for high-performing items, enabling :
Preemptive Stocking – Start ordering inventory for the next peak season based on the sales data pulled from the retail inventory system.
Operational Readiness – Use the shoulder season to fine-tune processes, train staff, and ensure your retail POS software is running smoothly ahead of the busy season.
Evaluate & Plan – Analyze the profitability of the past season and adjust strategies for the upcoming one.
By automating reordering and adjusting stock based on these insights, retailers can ensure they’re well-prepared for the rush without overstocking. This proactive approach helps minimize the risks of understocking or overstocking, both of which can impact profitability during peak periods.
The Takeaway:
Rather than viewing the shoulder season as a lull in business, retailers can use this time to maximize profitability by leveraging POS systems and inventory management software.
Intelligent tools can support businesses in optimizing inventory, offering targeted promotions, and forecasting demand for the next peak season. This proactive, data-driven approach ensures that retailers are not only prepared for the quieter months but are also setting themselves up for greater success when the next high-demand season arrives.
By embracing these tools, retailers can ensure that the shoulder season becomes a valuable opportunity for growth.
To find out how Management One can support you with advanced tools for demand forecasting and sales optimization during shoulder periods,get a free inventory and sales audit here.