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How To Cope With Poor Holiday Sales
By Bizbox
The new projection is that holiday sales will grow 2.2% this year. Growth! you think. In a contracting economy--this is good news!
Think again. Retailers depend on the yearly holiday season the way workers depend on that paycheck every other week. In other words, a robust holiday season is factored into larger business plans. And if holiday sales tend to grow over the previous year's, then that's factored in, too.
And they do. That 2.2% growth may sound nice, but it's exactly half the 4.4% growth that holiday sales have grown by on average over the past ten years.
So what do you do? MSNBC interviews a representative from the National Retail Federation as well as the main behind all of those National Federation of Independent Business press releases, economist William Dunkelberg, for some advice.
It's interesting that Dunkelberg sees a greater choking of inventory than of credit, on which he appears relatively sanguine. The key point made by the NFR guy, meanwhile, is one we've hammered home: that small businesses--"independent retailers," in his parlance--have a crucial advantage over the chains, and that is their ability to offer one-on-one, personalized customer service.
So by all means, discount where you can; and certainly look out for your payroll costs, which Dunkelberg identifies in the clip as small retailers' most vulnerable spot. But don't forget to do what you were likely doing best before the downturn: giving customers reasons beyond price and inventory do their holiday shopping with you.
Comments (0)November 19, 2008 6:05 PM
