Progress magazine
cover story
Ringing Up Success: Holiday Strategies for Merchants
By Heidi Howell
The
holiday season is upon us. Recently, we spoke with three local
merchants to gain insight into their annual preparations and plans.
Representatives of Keller’s, Warden’s and Stewart & Jasper Orchards
offered practical advice that can help your business stay focused and
competitive during this ultra-busy season.
Let’s start with
merchandise. To prepare for the holiday rush, Keller’s purchases its
Christmas decorative merchandise in January for the following season,
says Cherie Keller, co-owner/chief executive officer. “You have to
evaluate the trends you see in the previous year and monitor the
declining and increasing sales,” she says. For example, “There are two
types of trends we’re seeing: decorating trees (ornaments) and
decorating homes (table centerpieces, table figurines). The trend is
moving away from tree decorations and moving toward home decorations,”
Keller says.
Attracting holiday shoppers is another important
component. Joe Cunningham, president, furniture division, for Warden’s,
explains, “In our retail business, we utilize direct mail quite a bit
with featured items that have proven successful over past holidays. In
the office furniture business, items such as executive leather chairs,
student desks and even desk accessories are popular.” He adds that in
the downtown Modesto store, the large glass windows are typically
painted with a holiday theme.
Speaking of attracting shoppers,
Jason Jasper, vice president of Stewart & Jasper Orchards, advises
businesses to “consistently advertise the uniqueness and/or quality of
your product in addition to specials for the holidays. It’s also
important to inform potential customers of the convenience and customer
service at your store during the holiday rush,” he says.
What
marketing tactics do local merchants use? During the six weeks prior to
Christmas, Stewart & Jasper Orchards advertises in as many forms of
media as its budget allows. “We have scheduled promotions in place as we
approach Christmas,” Jasper says. At Warden’s, direct mail is the
primary source of marketing during the holidays. Cunningham says mailers
are first aimed at current customers, while additional pieces target
potential prospects. Point-of-purchase displays are also part of the
mix. “We always decorate heavily during this time of year; we brighten
up and emphasize those items we like to promote with lots of ribbons,
bows and signage,” he says.
Keller’s marketing tactics include
creating a preferred customer mailing list with mailings three to four
times per year, Cherie Keller notes. “In November, we send a gift card
to our preferred customer mailing list. Our customers love it,” she
says, adding that although shoppers are affluent, the gift of $10
excites them. “We usually get a seven to 13 percent response from our
preferred customer mailing list,” Keller says. The store once hired a
consultant who advised, “You want to ‘get the fish when they’re
biting.’”
Other Keller’s marketing tactics include newspaper and
radio advertising, in-store events and year-round free gift wrapping.
Keller’s has invited a choir to sing in the store and has held cooking
events, men’s events and a signing event. “Our cooking event offered
food samples in our cookware department,” Keller says. “Our men’s event
is held one week before Christmas, which is (traditionally) a shopping
night for men. We serve wine.” She says Keller’s also holds a
manufacturer signing. This December, guest Christopher Radko will sign
ornaments.
When asked what the most important aspect for
businesses is during the holiday shopping season, Keller responds,
“Customer service: 20 percent of your customers create 80 percent of
your sales. They will continue to come back.” A close second is gift
selection for independent stores, she says. “The independent stores have
a broad selection compared to the national chains.”
Jason Jasper
of Stewart & Jasper Orchards suggests stores decorate for the
holidays. “Creating a festive holiday atmosphere in your store to
promote the holiday spirit to your customers” is key. “This, along with
great customer service and attention to detail creates the ideal
shopping experience for your customers,” he says.
Warden’s Joe
Cunningham says businesses need to provide a pleasant shopping
experience for customers. “In today’s competitive market, there are no
‘second chances.’ The holiday season may be the first time or only time
of the year a customer visits your store,” he says. “Creating a warm,
friendly shopping experience would have to be the most important aspect
for my business. Why? So they’ll come back again. So they might tell a
friend.”
What advice do these merchants have for other businesses during the holiday shopping season?
•
Cherie Keller: “Don’t run out of merchandise. Don’t be afraid to have
lots of merchandise on hand. It’s better than running out, as my father,
Ervin Keller, would say.”
• Jason Jasper: “Have your inventories prepared for the last-minute shopping rush.”
•
Joe Cunningham: “Hire and train enough staff to handle the potential
busy periods; don’t get caught short-handed. Don’t concentrate on
‘making the sale,’ concentrate on creating a customer ... for life. This
doesn’t pertain just to the holiday season, this applies to the entire
12-month calendar year.”
Holiday bites
• Stanislaus
County retailers take in roughly 30 percent of their total annual sales
during the fourth quarter (fall), according to The Alliance and Board of
Equalization data. Total taxable revenue for area retail stores in
2003: $4,336,170.
• According to the Economic Development
Department and the Great Valley Center, permanent jobs in the retail
sales sector are projected to add about 347 jobs per year through 2008
in Stanislaus County. As such, employees with temporary jobs during the
holiday season are among the best positioned to take advantage of that
growth.
• In California, retail hiring was softer than usual in
December 2004, as the gain in retail employment from November to
December was about 40 percent lower than the average gain from 1991
through 2003. But retailers added more jobs than usual in October and
November of last year. Holiday hiring followed that same pattern in the
nation as a whole.
• Number of establishments around the country
that primarily manufactured dolls and stuffed toys in 1999: 217. Their
total shipments: $359 million. California led the nation in such
locations, with 28.
• Number of locations that primarily produced
games, toys and children's vehicles in 1999: 800. Their total
shipments: $3.5 billion. California led the nation in establishments,
with 123.
• Number of malls and shopping centers dotting the
U.S. landscape in 2000: 45,115. California had the highest number of
shopping centers, with 6,044.
Sources: The Alliance,
www.boe.ca.gov/news/tsalescont.htm, Great Valley Center, www.census.gov,
http://www.stanalliance.com/communities/stanislaus/taxes.shtml,
www.dof.ca.gov/HTML/FINBULL/Feb05.HTM
© HHWS for Modesto Chamber of Commerce
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