The fourth quarter of the year is the most important time for most retail businesses; it’s where most of the money is made, and its success (or failure) can make or break a business for the whole year. Black Friday, the Christmas build up and post-holiday sales bring increased demand that all retail businesses must prepare for.
As customer numbers rise, the most popular products can’t stay in stock, and staff face the most testing times of the whole calendar; retailers can quickly be put under strain. Customers are ready to spend, but businesses need to know how to react and be equally ready to meet that demand.
From expanding stock levels, hiring new faces to tackle the masses, and even staying on top of the store presentation, retailers have plenty to prepare for before the Q4 seasonal rush even gets going in order for it to be a success.
Projecting Q4 Customer Demand
No business can go into the last few months of the year expecting there to be no change in demand and not get punished for it. Retailers must anticipate that there will be an increase in customer demand for products and need to respond accordingly. No customer will be happy if a store is completely empty, as it’s not prepared well enough ahead of time to get the demand right and will leave a lasting bad impression.
There is a fine line between underestimating and overestimating what is needed to prepare. Under-promise, and the shop will stay empty; over-deliver, and profit margins will plummet with plenty of seasonal stock left over that is unable to be sold.
Retailers can get help anticipating the shop’s needs by utilising tools available to them. They can forecast the demand by looking at their current best sellers, reviewing market trends, and even analysing their own previous Q4 sales to learn from them. This means they can plan better and ensure supply matches demand, making the most of the seasonal rush.
Expand Regular Stock Levels
If a business runs out of stock, they’ve got nothing to sell and are missing out on the seasonal boom. Retailers have to make sure that they’ve got enough stock to cope throughout the festive season and to be able to cope with all the extra demands they face. Over-ordering slightly is less of an issue than being stuck with nothing to offer customers.
When it’s peak season for retailers, it’s also peak demand for suppliers, so deliveries of products may slow down. That’s why businesses must think about ordering products ahead of time, much earlier than they usually would; they cannot afford to wait until the shelves are empty as they don’t know when they’ll get a product in stock. Instead, they expand storage capacity and order in advance whilst at the same time avoiding excessive leftover inventory. It’s very much a calculated risk which can be heavily rewarded if judged right.
Increase The Regular Cleaning & Maintenance Schedule
Q4 will bring in more foot traffic than at any other time of the year for the average retail business. As well as preparing to make the most of this, companies need to get ready for all of the effects of the increased traffic. More people entering and walking around a retail store – coupled with the worse weather – means the store is going to get dirtier quicker than it would during the other 3 quarters.
There will be mud and dirt on the floor, loose leaves that have blown in from outside, excess water from all the rain, and so on.
Not only does this prevent the store from looking its most presentable, but it can also cause safety hazards where people slip and fall over. As a result, most retail companies learn that it’s better to increase the regular cleaning & maintenance schedule over this period. Commercial cleaners Jani-King note that cleaning is vital for keeping retail spaces ready and presentable throughout trading hours, regardless of the foot traffic. Instead of cleaning the store once at the end of the day, companies need to invest in cleaning teams that stay on-site and clean throughout the day during this busy period.
Hire & Train New Seasonal Staff
With increased sales comes the need for extra staff to handle all the additional customers and their needs. Q4 brings a significant increase in demand, so a lot of businesses need to hire additional employees to ensure that the store, warehouses and customer service continue to run smoothly all through the busiest time of the year. Taking on more staff earlier on also allows retailers to make sure they find the right candidates to fit with their business, before the demand for temporary workers increases and the season is in full swing.
Recruitment is just the beginning. Even temporary employees need to have full training to understand how the business works, its products and customer expectations, as well as all the usual health and safety information that is important to know. Giving proper training from tills to stock monitoring, store procedures and customer relations might seem unnecessary for seasonal employees, but providing them with full training can help them become more productive more quickly rather than just learning on the job.
It’s important to get staffing levels correct. Too few, and the current employees risk being overworked and getting burnt out; there’s even the possibility of them quitting if it becomes too stressful. Too many, and the business ends up with unnecessarily high running costs. Businesses should rely on previous years’ sales and even discuss staffing with current employees to gauge staffing levels necessary to keep the business running smoothly during the busiest parts.
The Q4 rush not only presents businesses with opportunities to increase sales but also brings plenty of challenges. Its success depends on how well prepared, ahead of time, a retailer is. From having the right quality of stock, hiring new temporary employees and keeping the shop environment up to scratch even in the busiest moments can help retailers meet demand and customer expectations. Instead of waiting for the rush to hit and react, those who are the most successful will be able to plan ahead of time and put their strategy into place long before the seasonal rush begins.
