Research has suggested that as much as 25 per cent of annual sales can be completed during the holiday period. Consequently, how this period is managed can significantly impact profit.
It’s a simple situation: A successful December can elevate a retailer’s year from ordinary to memorable, while a poor showing can lead to disaster.
In recent years, the retail landscape in Australia has changed significantly with the adoption of Black Friday sales. Traditionally a US event, local consumers have embraced the occasion, and it’s changed how jewellery retailers approach the year's final months.
Put simply, Black Friday is an opportunity for jewellery retailers to move ‘dead’ or slow-moving stock to secure cash flow ahead of the holiday period.
Stock assortment is critical as holiday ‘classics’ must be balanced with trending products. Retail Edge Consultants president David Brown says managing your ‘best sellers’ at this time of year is critical.
“Understanding your top-performing products is critical. Analyse sales data from previous seasons to predict this year’s winners,” he explains.
“Is there a particular item that always flies off the shelves? Ensure you have plenty in stock and consider bundling them with complementary products.”
He continues: “Moreover, keep an eye on emerging trends. From sustainable gifts to experiential presents, staying ahead ensures you meet evolving customer preferences.”
There are many methods jewellery retailers can use to monitor trends. Reading industry publications such as Jeweller is a strong start, and social media can also provide valuable insights.
For those business owners who are ‘hands-on’ and actively involved in the business, collecting and analysing customer feedback can offer valuable insights into why certain items are trendy.
It is recommended that you use this information to refine your product offerings and enhance your marketing strategy; however, remember that these are anecdotal reports!
While a customer may have a strong argument in favour of or against a specific jewellery product, these feelings may not resonate with other customers. That said, the more voices contributing to the discussion, the better.
As Brown highlighted, regularly reviewing sales data can shape your understanding of which items are performing well. This can help you make informed decisions about which products to promote, discount, or phase out.
Adjusting your stock based on seasonal trends and occasions can be effective. For example, certain jewellery pieces may sell better during holiday seasons or special events. As mentioned, Black Friday is an opportunity to 'say goodbye' to products that your staff has struggled to sell.
In the lead-up to last year’s Black Friday event, Salesforce ANZ area president Jane Brown said retailers should seize the opportunity.
“Aussies are getting savvy with their spending and hunting for the best value deals this Christmas,” she explained.
“Now is the time for retailers to stand out from the pack with personalised product recommendations and loyalty programs which deliver real value for customers in new ways.”
She added: “Embracing predictive and generative AI to offer sophisticated recommendations will help retailers be more productive and efficient, while delivering the personalised experience customers demand.”
While focusing on best-sellers is essential, it’s also wise to diversify your product range where appropriate.
Introducing new designs and collections to keep your store fresh and attractive can introduce a broader audience to your business.
“Getting your stock assortment right is a delicate dance. Yes, holiday classics like festive decorations and timeless gifts are must-haves,” Brown explains.
“However, don’t underestimate the power of trending items. Not everything will be a repeat seller. Review your sales from last year for the proven performers that always sell well.”
He continues: “This will be a good indication of whether you need spare inventory for this year. Keep an eye on consumer trends and adjust your inventory accordingly.”
To prepare for what’s ahead, retailers must invest in staff training to ensure quality customer service. This might involve refreshing product knowledge or simply ‘brushing up’ on what’s expected when dealing with customers.
Business consultant Shep Hyken encourages retailers to educate staff on the value of ‘breaking the rules’ to secure consumer loyalty.
“While it’s essential for employees to be trained on what they shouldn’t do, it may be more important to train them on what they can do,” he explains.
“By that, I mean how far employees are allowed to go before they have to say ‘no’. I call this the line in the sand concept.”
He concludes: “You should teach the employees of your jewellery store how close they can get to this line before they’ve gone too far, because it’s this level of effort creates customer loyalty.”
Early planning is always essential to meeting targets. By ensuring the business is prepared for the holiday period, retailers can capture an opportunity for growth and success.
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