With less than 10 weeks to go, retailers are pulling out all the stops to secure those essential Christmas sales. Make sure you aren’t left behind with Retail Week’s Christmas checklist

It’s less than 10 weeks until the big day and you could cut the retail atmosphere with a knife. A few more news stories about billions being wiped off the stock market, rising inflation or the decline in property prices and most people will hardly feel like celebrating at all.
The consumer mindset means making forecasts for this Christmas is even more difficult than usual. Many believe consumers will start their shopping earlier.
Mamas & Papas launched its Christmas shop in stores and online last week and a spokeswoman says she was “shocked at how strong sales were in the first week”. She adds: “We thought it would grow gradually. It hasn’t – it’s immediately gone crazy.” She attributes this partly to the fact that many consumers want to spread their outgoings as much as possible. So those retailers that haven’t launched their Christmas shops already might well have missed a trick.
On the other hand, the volatile economic climate has led others to believe that many will delay their Christmas shopping. As former Woolworths supply chain director Alastair Charatan, who is now director at supply chain consultancy EOC, says: “Forecasting will be particularly hard because many people will delay payment because they’re so unsure about the months ahead and their financial and job security.”
And then, of course, there’s the aftermath to bear in mind. Lisa Derbyshire, business development director for reverse logistics provider The Returns Company, points out that cash-strapped consumers may return items for cash given their possible financial situation after Christmas. “What impact will this have on the businesses’ cash flows?” she says.
All is not lost, however. The sector anticipates a 20 per cent year-on-year rise in online sales at Christmas. But competition will be fierce. Conchango retail consultant Dan Wilkinson says: “Unsurprisingly, price will ultimately be the main focus this year so clear, compelling offers must be accompanied by an easy to use and engaging user interface to ensure conversion.”
In general, there is much retailers can do to tempt shoppers to not only spend their cash with them and boost the amount they spend once they’ve walked through the door. But it is a question of organisation. Selfridges marketing director Sally Scott says that the retailer started planning for this year’s festive marketing activities in December last year. “The ad campaigns are done, media is booked, events have been commissioned and special appearances are all lined up. We start with the creative concept and work from there, looking at where we need an injection of innovation,” she says. As she points out: “A time of economic turmoil is when customers look for enjoyment and escape – we’re focused on creating an opportunity to get away from the doom and gloom.”
Ultimately, it’s vital to ensure every person in the organisation knows just how crucial this Christmas will be. There may be a handful of retailers whose sales are soaring despite the immensely difficult trading conditions, but everyone else needs to be realistic.
For many, it’s not going to be pretty. For some, it’s going to be downright ugly. And the more prepared they are, the better they can make this vital sales period. The clock is ticking.

Stores

Have you:

  1. CONSIDERED OPTIMUM LAYOUTS?
    Piling maximum product into a store in anticipation of higher demand doesn’t make shopping easier for customers. Ensure there is space to navigate the shop and for queues to form. Look at the layout from a customer perspective. Also consider whether you need additional signage and think about placing items that could be cross-sold next to each other.

  2. INVESTIGATED HOW TO BOOST SECURITY?
    Given the economic climate, shoplifting is likely to be even more rife this year. Look for store hot spots where it might be easier to shoplift, as well as product lines that are likely to be targeted, and brief staff accordingly. It’s also important to create a culture of honesty – the more awareness is raised about collusion, the more the risk is minimised.

  3. CHECKED WINDOW DISPLAYS?
    Retailers should have planned window displays months ago and some have unveiled theirs already. For those that haven’t, now is the time for last-minute checks. Will bringing forward the launch of these displays be beneficial if trading is sluggish? Are electrical and IT requirements in place? Is the promotional message in the window carried throughout the store?

  4. REVIEWED LAST YEAR’S EVENTS?
    Patterns emerge from every Christmas, whether they’re to do with peak trading, staffing levels or availability problems. Now is the time to review and use this information to plan for all eventualities. If you didn’t record such data last year, ensure one person in the store is given specific responsibility for collating and recording such details from this Christmas onwards.

  5. LOOKED AT COMMUNICATION?
    A smooth flow of information between stores and head office is even more vital at Christmas, but the sheer volume of data can be overwhelming. Ask store staff about improvements that could be made on last year and put a plan in place. Only send out truly necessary information, keep it concise and keep it clear.

Top tip: Sainsbury’s retail lead project manager Paul Gilligan says his store manager role at the grocer taught him the importance of planning night shifts. “By October I had signed off a schedule for all the night shifts, worked out how many people would be working each shift and got them to sign to it. Otherwise, the closer you get to Christmas, people just don’t turn up or say they’ve already booked holiday, which makes replenishment a nightmare,” he explains.

Staff

Have you:

  1. STARTED RECRUITING?
    It’s a race to find the best temporary staff, so the earlier retailers start, the better. Some, such as Waterstone’s, already have in-store signage enquiring whether customers are interested in temporary work. In fact, it’s always a good idea to try to recruit from your customer base because they’re likely to have an affinity with your brand. Now is also a good time to ensure shifts are being planned, so everyone is aware of their expected hours.

  2. FOCUSED ON TRAINING?
    Official induction programmes are essential for temps. Skimping on training is never a good idea, even when budgets are stretched – temps should not be expected to learn the ropes as they go along, because this will only lead to mistakes and lost sales. Equally, if they don’t feel part of the team they’re likely to be unmotivated.

  3. SET TARGETS?
    There’s no harm in healthy competition among store colleagues. You don’t want to create a pushy sales culture, but incentivising them with rewards if they hit key performance indicators helps put cash in the till and can mean they are more attentive to customers. Ensure daily briefing sessions are held so that everyone in the store is mindful of the importance of a strong financial performance.

  4. STRESSED THE IMPORTANCE OF CUSTOMER SERVICE?
    Shoppers are particularly sensitive to how they are treated at this time of year. Anything that stands in the way of them completing their Christmas shopping list will be noted and customer service is as important as sales. Remind store staff that they are integral to the success of the business. Compile a list of common scenarios they may have to deal with and suggest ways to tackle them.

  5. REFLECTED ON LAST YEAR?
    Christmas isn’t just a stressful time of year for head office – it’s equally stressful for store colleagues. Longer opening hours, hordes of shoppers and a deluge of customer enquiries put staff under pressure and this can lead to poor customer service. Ask them about any problems they experienced last year and look at ways to make their working lives more pleasant. Happier staff mean happier customers.

Top tip: Russell & Bromley head of HR Ann Friday recommends circulating a Christmas preparation document to every store manager to pass on to staff. It should cover everything from operating times to security issues. “It contains a raft of information that’s particularly useful for new staff,” she says.
RKETING

Marketing

Have you:

  1. EXPLORED THE IDEA OF ONLINE GIFT CATALOGUES?
    If budgets don’t allow for a direct mail Christmas catalogue, putting a virtual catalogue on your web site is a cheap and effective alternative. It’s also a good way of drawing further attention to top-selling lines, as well as lifting sales of lines that you may want to discount closer to Christmas.

  2. CONSIDERED VIRAL MARKETING?
    Most people will remember the stampede of customers to Threshers when it launched a 40 per cent e-mail discount voucher – supposedly to family and friends – that was quickly circulated nationwide. Depending on how trade is going, such campaigns are a quick and inexpensive way of driving sales nearer to Christmas. If they are an option for your brand, have such a campaign ready so that it can be activated immediately if deemed worthwhile.

  3. COLLECTED MAXIMUM CUSTOMER CONTACT INFORMATION?
    It’s not too late to put extra effort into gathering as many customers’ e-mail addresses as possible, in an effort to maximise the return on investment of your festive marketing campaigns. Customer competitions, both in stores and online, are an effective way of collating contact details.

  4. FOCUSED ON SEARCH ENGINE OPTIMISATION?
    If not, then unfortunately it’s too late for many of the most competitive terms because it takes time for search-engine crawlers to recognise any additions. However, there are always the paid-for searches and the sooner you buy those words the better, because the cost rises astronomically the closer you get to Christmas.

  5. INTEGRATED ON- AND OFFLINE MARKETING EFFORTS?
    Consistent messaging and pricing will further aid conversion online. As Conchango retail consultant Dan Wilkinson says: “There’s no point in running a great offline campaign if consumers can’t find the same message online.”

Top tip: Selfridges marketing director Sally Scott says: “The most important part of Christmas is coming up with a theme that will inspire customers to come to our stores for a captivating festive experience. Be true to your brand and you’ll be true to your customers.”

Online

Have you:

  1. SET UP A DESIGNATED CHRISTMAS INFORMATION PAGE?
    The most organised retailers already have a specific section of their site devoted to the festive season, such as John Lewis, Homebase, Sainsbury’s and Harrods. But many more don’t. Bear in mind that some shoppers will be thinking about Christmas earlier than ever this year, in an effort to spread the cost as much as possible. The sooner retailers get their attention and offer inspiration, the better.

  2. CONSIDERED FESTIVE WEB SITE DESIGNS?
    Anything that increases conversion rates is a good thing. The extent of online festive touches will depend on the nature of the brand. In some cases, overdoing it will make a site look tacky, but just as you would use visual merchandising in stores to get shoppers in the mood to spend, the same applies to your site.

  3. TESTED WEB SITE CAPACITY?
    Online sales are forecast to top last Christmas and retailers whose sites can’t cope with surges in demand will lose valuable sales and credibility among online shoppers. Retailers should have already estimated potential increases in traffic and load-tested their site to ensure the software is able to withstand huge spikes. If necessary, strengthen your web site infrastructure.

  4. FOCUSED ON CUSTOMER SERVICE?
    It’s not just stores that require extra staff at Christmas. Online enquiries also shoot up at this time of year and shoppers don’t want to be kept on hold in a queue while they wait to speak to a member of the customer services team regarding their order. Make sure you start putting mechanisms in place to recruit the best possible temporary staff to ensure the best service for your online shoppers.

  5. THOUGHT ABOUT PROMOTING THE CHRISTMAS DELIVERY SCHEDULE?
    Not being able to fulfil customers’ Christmas orders could lead to a PR disaster. To avoid any misunderstandings, retailers need to clearly communicate Christmas delivery information to their customer base to ensure all orders are received in time for Christmas day.

Top tip: Firebox managing director Christian Robinson says: “Online retailers are raising the bar, but customer expectation will be higher than ever this year. Think like the customer thinks in every area of your preparation and you will be well placed to meet those demands.”

Supply Chain

Have you:

  1. CONSIDERED HOW TO MAXIMISE AVAILABILITY?
    During the festive season, customers expect to find any promoted item in stores. Retailers must ensure they run peak planning meetings regularly, taking into account lessons from last year. Supply chain managers need to run frequent meetings with suppliers and distribution partners to ensure everyone is ready to respond to any availability issues quickly and efficiently.

  2. BRIEFED STAFF ABOUT STOCK ACCURACY?
    If necessary, invest in training so that everyone – temps, store staff, delivery drivers, warehouse operators and management – understands the importance of stock accuracy and the individual role they have to play. Retailers should also check stock labelling as early as possible. If a box arrives labelled white scarves but turns out to be black scarves and no one has bothered to check, there will be an immediate availability issue that could have been easily avoided.

  3. LOOKED AT HOW TO ORGANISE YOUR STOCKROOM?
    Given the amount of extra stock required over Christmas, stockrooms can become a disorganised mess. Retailers need a well thought-out system. Some adopt warehouse-style systems to help them, so look at ways in which store staff can learn from warehouse colleagues. This may include, for instance, simple location codes.

  4. CONSIDERED A CONTINGENCY PLAN?
    Christmas never runs like clockwork, so make sure you have a back-up plan to cope with unexpected surges in sales. Assess whether your warehouse operations need to increase their hours during the festive run-up. Also, ask in advance about any staff that are prepared to work overtime at short notice. Close communication is essential.

  5. THOUGHT ABOUT UNSOLD STOCK AND RETURNS?
    In the fight to drive sales, it’s easy to forget about what’s going to come back. What is your worst-case scenario? How will you handle excess product? Also, for some retailers an above-average level of returns or unsold stock will mean that getting credit with suppliers to return those goods is a priority. But competitors will be thinking the same and supplier credit might be limited, so retailers need to think about how to get there first and secure credit agreements early in the new year.

Top tip: To maximise forecasting accuracy, EOC director Alastair Charatan urges retailers to “use every clue they can” and “heed early warning signs”. He says: “If you’ve got orders from catalogues or the web site before products have reached stores, that’s a sign it will be a big seller.”