Susan Dickenson

Retailers tweak & trim to meet challenges of holiday spending pinch
November 26, 2007

Retailers have just started what may prove to be one of the most challenging holiday seasons in years. In response, many retailers are planning to fuel the sales of tweaked and trimmed inventories with a flurry of promotions and discounting. Sixty-four percent of retail marketing executives surveyed in October said they're exercising more caution in their sales and inventory planning this season. These are among the findings from the BDO Seidman Retail Compass Survey of CMOs, an annual survey of chief marketing officers from leading U.S. retailers. More than a third of the CMOs said they're increasing their marketing focus on green products this year, something smaller retailers are doing as well.

Homeward Bound, a New England lifestyle store with three locations in Massachusetts and Connecticut, is supplementing its large selection of naturally-made environmentally-friendly toys this year with green gift ideas for adults. Homeward Bound's nature-inspired collection includes bird-themed gifts, animal-inspired designs and collectibles from India and South Africa. Co-owner Kathy Walsh said the store's passion for green living also extends into product lines such as beeswax candles and Homeward Bound's exclusive “live edge” designs, which give a rough, fresh-cut look to the edges of wood accent pieces and shelving.

Over on the West Coast, Tara Riceberg (photo, right) has found one way to minimize risk with a temporary holiday boutique. Riceberg spent years working alongside her mother in their Beverly Hills store, Tesoro. After the store closed in 2004, Riceberg launched her home styling business, TWEAK, but found that the retailer in her just wouldn't die. So she put a merchandising idea into motion and landed at Saks Fifth Avenue Beverly Hills with Tweak's holiday selection of pre-wrapped gifts, organized by price for quick and easy holiday shopping. “It was fantastic to merchandise by price point. You see this a lot on Web sites but rarely in stores,” she said. Several months ago, a friend suggested Riceberg give it another go. She was pondering the idea as she drove past her old store location, now subdivided into three shops and sporting a For Lease sign. “I parked and ran upstairs to say hello to my old landlord. Next thing you know, I'm opening up Tweak Holiday Boutique. I had just three weeks to build out, order, stock and pre-wrap, but I made it – and opened for business in October.” Riceberg markets with “Tweakly” e-mails (photo, left) and is open each morning by 8 a.m. “It's all about convenience and making gift shopping easier, especially for those you buy for but don't know very well – the manicurist, dog walker, doctor, teacher, your spouse's business associates,” she said. Tweak Boutique also stocks one-of-a-kind items for those who enjoy browsing for special, more expensive items. And Riceberg, who found herself missing the buzz of the holiday season, gets to return to retailing for a quick fix during the most profitable time of the year.  Retailers, tell me how you’re weathering the retail climate thus far… or send news of your holiday boutique (and include a couple of photos) to susan.dickenson@reedbusiness.com.

Posted by Susan Dickenson on November 26, 2007 | Comments (0)