Creativity, optimism, fresh product keep retailers in the game
Creativity, optimism, fresh product keep retailers in the game
Susan Dickenson Retail Editor -- Home Accents Today, 11/1/2008
I share the sentiments expressed this month in our Best of Market edition by our editor in chief, Jenny Heinzen York, about the surprisingly upbeat market that just ended in High Point. The home accents vendors definitely had lower expectations coming in, but they remained positive and wrote orders. A couple I spoke with at the end of the week even reported that sales were up over the spring market.
The home accents buyers were also positive with more than half of the ones I interviewed coming off of or about to report a good year. Their customers' buying patterns were all over the place, with some retailers reporting fewer sales but bigger tickets, and others reporting more sales but of lower-priced items.
A few retailers from same geographic markets gave completely opposite accounts, such as three different shop owners from the North Carolina mountains. For one, the area has been “somewhat exempt from the downturns.” Another said the area was hit harder than others — by the gas crunch that kept tourists away. A third said he was having the biggest fall (yes, the season) he'd ever had.
A successful catalog retailer I met has found success with a “hot” new category, that of women's home offices, and was at market looking for distressed-finished desks and traditional pieces that could be repurposed as printer tables and storage units.
Most of the retailers shared the opinion of Michael Di Paulo of Denver's Homefest, the subject of this month's retail profile, who buys and advertises even more during a downturn. Another, Mark Crumpler of The Brass Exchange in Charlotte and Blowing Rock, N.C., put it this way, “Business isn't normal but you kind of make your own destiny — put nice things out there and you have a lot better chance of selling nice things.”
An increase in the amount of e-mails and invitations that arrive here in the office announcing in-store events and sales is even evidencing some newfound creativity when it comes to promoting product.
Some retailers are encouraging customers to turn their economic concerns into a reason to shop, such as Los Angeles' Tweak boutique where an American flag backs a “Save the Economy” suggestion in the front window. Santoro and Co. in Bridgeton, N.J., is offering 30% off the entire store during its Holiday Open House, being held during the last three days of November to give customers some relief from the economic crazies. The event is advertised on a postcard mailer complete with photo of an “crazed” staff.
Cassandra Tennille of Tennille & Company opened her third store of 2008 last month in Suwanee, Ga. She announced it, and her intention to continue at “full throttle” with her business plans, in an upbeat e-mail to customers. The e-mail also announced her October Boo-Berry sale, offering a “31% off gift card valued at 31% of purchases made” during the days leading up to Oct. 31.
All's fair in the retail war, and it may require more ammo than ever this season as the chains and department stores pull out all the stops to grab their share of a smaller holiday pie. Kmart, for example, theorized that tight credit would cause consumers to stretch out their spending over a longer period this season and, in response, moved up the start of its Black Friday sales from the day after Thanksgiving to Nov. 2.
Others, like Kohl's, are being more aggressive in announcing sales events and early discounts. Kohl's plans to do more holiday advertising with direct mail, e-mail, television and radio, is doubling its e-mail efforts and using more gift card kiosks. DM News reported Kohl's has also planned a series of homepage takeovers at AOL, MSN and Yahoo to promote sales events.
Luxury retailers like Henri Bendel and Saks are even offering deeper discounts and promotions, especially since a September study of affluent consumers by Harrison Group and American Express Publishing showed that 83% of those with median annual income of $325,000 are going to wait for sales before beginning their shopping. Ten months ago, that number was 67%.
If you've got time to take a breather, I'd love to hear how your fourth quarter is going, as a retailer and/or a buyer. While you're at it, send me your thoughts on specific products and categories — what's selling and what's not -— for my 2009 update of last January's In & Out list. I can be reached at susan.dickenson@reedbusiness.com.
Some retailers are suggesting customers assuage their economic worries by shopping.
























