Veteran retailer Dave Strutton says he invested significantly in record stock levels this Christmas compared with previous years but it’s a risk he’s confident will pay off. 

“I think the bigger risk is not having enough merchandise versus having too much, particularly in the current economic climate,” he says.

“This is not a normal time in the retail world. I haven’t risked carrying such high stock levels in my 15 years of retail.”

Making the decision to buy stock from suppliers earlier rather than later is the key to maximising good margins, he says.

“There’s significant increases in manufacturing and freight costs so buying early to avoid price increases has been critical to achieving good margins. It’s also given me the space to create some special offers post-Christmas.”

“Snap lockdowns, closed stores and supply chain disruptions, have made it particularly challenging this year, leading to a necessary higher calculated risk in ordering stock.”

Mr Strutton jokes his purchasing strategy this year was ‘go hard or go home.’

“Suppliers are running out of stock quickly, and replenishments are hard to source so if you notice an item is moving early, you need to grab what’s available or quickly find a similar alternative.

“I’d rather have the stock now and run the risk of some leftover, than miss out on those sales opportunities.”

Aside from managing your stock levels, Mr Strutton has the following advice for retailers looking for success in the industry this Christmas:

In tune with your product range: Know your product, how it’s merchandised and understand why it is or isn’t selling. Putting Christmas stock out as early as October will give an early indication of sales trends, and allow time to order more, or find an alternative range. If a product isn’t selling well, ask yourself why? Was it because the product wasn’t displayed well, tucked away out of sight, or was the range too narrow? Try alternative merchandising options to help move a poor performer. Being in tune with your merchandise and sales trends will always tell a bigger narrative.

Merchandising: During the busy Christmas trading period, well merchandised stock is key to capturing the customers’ attention. Presenting the product well translates to caring about your customers’ needs and overall purchasing experience in the store. If the right stock is allocated to the right places at the right time, it can make all the difference between success and failure as a retailer.  

Monitor sales trends: Analysing your sales history daily and gaining feedback from staff and customers is more critical this year due to stock delays. No retailer wants empty shelves. Comparing sales trends against last week or even last year can help forecast demand and allow you to get on the front foot with future orders.

Impulse and Add Ons: Critical to the success of sales this year is sending a message to customers that your store has great range of product and plenty of it. In Mr. Strutton’s store, this includes positioning unique and interesting stocking fillers near the point of purchase and in high foot traffic areas. 

Pop-Up shop: In addition to his main store,  Mr Strutton runs a Christmas gifting ‘Pop-Up Kiosk’. It runs for five weeks in the lead up to Christmas and the small 12 square metre space is bang in the middle of a high traffic shopping centre. He uses minimal signage, instead preferring to maximise the valuable retail space and, as he says, have stock in shoppers faces. He believes the ‘Pop-Up Kiosk’ draws new customers to his brand and create a loyal following built up over the nine years he’s held the space. 

Avoid Discounting: Discounting in the lead up to Christmas, is not a wise strategy for any retailer. From a business perspective, discounts simply eat into your margins, and full price trading maximises profits at a time when customers are already willing to spend. After a year that’s desperately lacked magic, many people want to support retailers and embrace the spirit of giving. 

“A well-stocked and merchandised store will always give the customers a great shopping experience and set the tone for Christmas buying.”