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Retail readies for advent of tight pockets at Christmas

September 20, 2011 by Laurel Tielis — Author and Professional Speaker, Laurel Tielis & Associates

It's not a fashion statement, but an economic one. According to a survey commissioned by the London-based global news agency Reuters, American shoppers will be holding on to their wallets this year. More than four-fifths, or 82 percent of the people asked, expect to spend the same or less on Christmas gifts.

That's no surprise when income, adjusted for inflation, is back at 1996 levels; almost one in six Americans is now living at the poverty level, and even the affluent, who led a short-term run back to higher sales, have had their confidence in the economy shaken.

But it's a major disappointment for retailers, for whom the holiday season is usually a make-or-break time in terms of profitability for the year. So in an effort to avoid a Bah! Humbug Christmas, Kwanza, or Hanukkah, big box retailers have already begun stocking stores with holiday merchandise.

Don't deck the halls before Halloween

While that might work for chain or department stores, small business owners have neither the space nor the inclination to deck the halls prior to Halloween. But, independent retailers could take a tip from those mass merchandisers like Walmart who have listened to customers and brought back layaway.

They can do the same, and go them one better, by starting a Christmas Club for shoppers. Not the kind of club that was a staple at banks for years, where people deposited small sum of money each week in a Christmas account, so that when it was time to go shopping, they could afford to do so.

Create community and engage your customers

But rather, form a club where you bring together shoppers at your store once a week, or once a fortnight, to create community and engage your customers. You can promote this through social media such as Facebook, Twitter, or LinkedIn; write about in your newsletter, post it on your website, and reach out to local media through a phone calls or a press releases.

Keep it simple–serving coffee and cake, wine and cheese, or beer and pretzels–and offer ideas that will help your customers with their holiday buying. If you partner with other retailers, you can have a moveable feast, going from store to store each week.

You might invite a financial adviser to talk about how to maximize wealth (or at least to aid your customers in holding on to what they already have), bring in a personal shopper to help them mix and match new items with things they own, a la consignment store or thrift shops, or provide shoppers with information about how to keep products looking or working their best.

The more you do now to bring in business, the more you will benefit when the holidays actually roll around. And you'll do it without creating buyer fatigue, but rather by assisting people in the spirit of the holiday.

What are you planning to do this year to keep registers ringing and make it a merry Christmas?

About Laurel Tielis

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