The Golden Quarter for retail is upon us and hopefully, by the end of the year, the figures will be reporting a successful Christmas period for retailers and pointing towards an even rosier outlook for 2025. Since the last retail peak season we have had a change in government and there is noise that the intention is to introduce economic policies designed to boost disposable income, including raising the minimum wage and public sector salaries. The potential increase in spending power for some is offset by the worry for many that increased taxation will mean the cost of living crisis will continue to leave its unwelcome mark.
Alongside this Labour has also pledged to reform the business rates system, which is a major burden for physical retailers. Their proposed new system of business property taxation aims to reduce costs for high-street shops, levelling the playing field between brick-and-mortar stores and online retailers. This is expected to reduce operational costs, allowing businesses to invest more in customer experience and competitive pricing.
Focus on revitalising the High Streets will be very much welcomed, whether through the aforementioned reduced taxation for brick-and-mortar stores or measures like introducing banking hubs and cracking down on shoplifting by increasing police presence. These efforts are designed to create safer, more vibrant shopping environments, which could attract more foot traffic and increase sales for local businesses.
The reality though is that it’s too early to say what impact the new government will have on the fortunes of the retail sector in the UK, so retailers need to focus on maximising the opportunities that the peak season presents, seeking wherever possible to boost sales and leave a positive lasting impression with customers. The challenge is tough. While high inflation is perhaps not the worry of 12 months ago, rising living costs are still very much having an impact and then there are factors such as staffing challenges and store closures. To ensure a successful golden quarter, retailers must take a strategic approach. By prioritising adaptability, customer engagement and operational efficiency, retailers can stand out and remain competitive, even as consumers potentially cut back on spending.
Success during this time also demands careful planning, strategic insight, and perfect execution. Without proper preparation, retailers risk missed opportunities and unhappy customers. To make the most of the peak season, it’s essential to start planning early. This involves setting pricing strategies, organising promotions, staffing, launching marketing campaigns, and making any necessary operational adjustments, such as embracing digital transformations or strengthening supply chain resilience.
First and foremost, adopting an omni-channel approach that seamlessly blends online and offline shopping experiences is essential. Offering customers the flexibility to research, purchase and receive products across multiple channels ensures a smooth and convenient shopping experience. This should be viewed as a long-term strategy, not a short-term solution, as it creates a strong foundation for attracting, converting, and retaining customers.
Another overlooked strategy which has caused a lot of customer irritation for many retailers and online stores during a Black Friday or an event is website load capacity. We’ve seen it countless times where websites have crashed on the customer due to an overwhelming amount of traffic to the site, this in turn can cause a spiral of negatives, ranging from loss of sales, loss of customers and negative reviews. It’s 2024, there shouldn’t be a situation where the website is overloaded and subsequently crashes due to traffic load, this is a recurring theme for many businesses and sites and needs to be taken seriously in the planning stage.
Investing in technology is key to enhancing the online shopping experience for your customers and it can also provide a significant advantage for retailers. Improved website functionality and optimised mobile responsiveness can help create the seamless omni-channel experience retailers aim for. This combined with the website reliability/stability that comes from investment, will set your website apart from the crowd. Additionally, emerging technologies like AI-powered assistance, virtual try-ons, and AR options can further elevate the experience by allowing consumers to visualise products in their own homes.
Offering targeted promotions and discounts to drive sales during the golden quarter is a proven strategy, but it’s crucial to know when and when not to discount. Retailers might consider bundling products, offering exclusive deals, and leveraging loyalty programmes to encourage repeat business, these promotions are by far the most common ones implemented, however, there’s been a rise in alternative promotional discount incentives such as tiered discounts, which are seen more and more with the basic concept being progressive discounts to entice customers to spend more, e.g. 10% off for £50 spent, 20% off for £100 spent. Another seemingly popular promotion is the flash sale. These limited-time discounts create a sense of urgency, which can generate excitement and increase traffic. You’ll see a lot of these flash sales with Amazon and their Prime Day, where offers can last up to an hour or until stock runs out. However, as much as these promotions can boost demand, it is essential to plan ahead and ensure a strong, stable supply chain to avoid disruptions. Building supply chain resilience is key to meeting customer demand, so where possible, consider diversifying suppliers to safeguard product availability.
Retailers offering online sales will have already put careful thought into their delivery and returns policies. However, as peak season approaches, it may be time to reassess. Were there any lessons from last year? Free returns are highly valued by many shoppers and could give you an edge over competitors. As we’ve seen recently, there are countless businesses that are charging for returns now, usually in the form of passing the postage cost over to the customer, which re-emphasises how much customers value free returns and the edge it can give you over your competitors. However, managing the increase in orders can strain customer service teams. Whatever approach you take, it must be clearly communicated to customers and streamlined to ensure a smooth, integrated returns process.
Effective customer service is essential, and it’s crucial to equip staff with the skills needed to deliver outstanding service both in-store and online. Well-trained employees can significantly improve the shopping experience and foster lasting customer relationships. In the world of the internet where all information is at your fingertips many shoppers will have already researched before entering stores, so simply repeating what’s on the display POS won’t be enough. Empower sales advisors to impress customers with their expertise, advice, and recommendations, making the customer feel like they’ve made the correct decision in coming into the store. Moreover, taking care of your team and ensuring they feel valued at work will not only improve retention but also lead to more positive customer interactions, enhancing the overall shopping journey and encouraging repeat business.
Finally, retailers should explore the support their suppliers can offer. Many brands are keen to assist with a range of activities such as product training, promotional efforts, or additional brand ambassador staffing, in-turn it not only boosts sales of their products but also benefits your business in the process.
As we know, consumers will have no shortage of options for where to spend their money, so it is pivotal that retailers go the extra mile to stand out. Whether this is through engaging marketing— through store representatives, training, or merchandising— all of which can help ensure customers know who you are and why they should choose your products. Once you’ve captured their attention, loyalty and long-term success will follow, extending well beyond the holiday season.
To read the published article by Dan Todaro, Gekko Group CEO please visit ERT
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