Preparing for Peak Trading Season

The summer months are behind us, and now peak trading season, otherwise known as the “golden quarter”, will be at the forefront of retailers worldwide. 

With Halloween, Black Friday, Cyber Monday, and Christmas Day on the horizon, retailers expect increased sales as demand responds to increased marketing, advertising and promotional activity. All retailers plan for this critical trading period but some plan rather better than others.

Here’s what you need to know about navigating peak trading season to maximise profits.

Why do businesses need a strategic plan?

With Christmas shopping officially starting in October, retailers that are not prepared could lose out to their competitors. They may also see long delivery times, as well as inefficient demand forecasting, staffing levels, and pricing strategies. 

While we can expect this trading period to be the biggest of the year, the cost of living crisis has made it harder to predict customers’ behaviours as people's buying habits have changed. Days like Black Friday and Cyber Monday, where products are sold at discounted rates, will likely be more popular than ever as people look for the best deals around. 

Perhaps the two pivotal prerequisites of success are accurate forecasting, and flexibility and agility. Alongside expected events, you need to be aware of the external factors affecting demand. For example, there may be products that are experiencing increased popularity due to celebrity or influencer endorsements. Having this insight will make sure your business is fully equipped and is the go to place to place to shop from.

What areas should be prioritised?

There are many factors to consider when planning for peak trading season, and here are just a few areas you must prioritise: 

• Inventory Management
  

  Businesses need to consider their stock volumes going into this period. Under-ordering will present a missed sales opportunity, while over-ordering could see you sitting on stock well into the new year. Effective forecasting and inventory management means you perfectly strike the balance to hit the profitability sweet spot.

  
  

• Pricing Strategies
  

  Understanding how to optimally price your items based on external factors, market demand, and competitors, will ensure that your business meets its forecasted revenue goals. Black Friday has been a very negative import from the USA. Discounting in November risks missing out on full price sales in December. Again, forecasting how your customers will react to price will be critical to getting your Black Friday stance right, which in turn will impact December trade.

  
  

• Website Performance 
  

  Ecommerce businesses need to make sure their websites provide an all-round good user experience with fast performance to drive sales. Websites that offer personalised suggestions, or showcase what’s popular, will also see increased revenue.  

• Staffing Levels Without efficient staffing, customers may not receive the timely service they expect. Stores that hire temporary seasonal staff will need to ensure they are trained and prepared for the period ahead.

  
  

• Marketing Knowing where to advertise and how much to spend on your marketing will help to increase activity and target the right demographic of customers. Is your Christmas advertising really sales and profit accretive?

• Supply chains and shipping It’s important to identify any regular issues with your supply chains, as these will be especially highlighted during the peak season.

• Customer Service Whether online or in store, customers will most likely spend with the brand that delivers the fastest, most knowledgeable, and friendliest service. Having the tools in place to be responsive to customer queries will result in increased trading.

Where should I begin?

Start off by setting achievable goals for each of your key areas mentioned above. When making these objectives, always think about what will be most profitable for your business and likely to meet customer demand. 

Invest in technology that gives you better insights to plan staff and product levels and pricing strategies. Elsewhere, look at customer relationship management (CRM) platforms to effectively track orders and respond to enquiries. As this is going to be a busier time of year, businesses need to clearly communicate their shipping times and expected delivery dates to avoid frustration from customers.

Finally, your strategy should be ever evolving. You’ll need to be responsive to any changes in the market you are seeing, so if a certain product is experiencing unforeseen demand, make sure to increase volumes and orders.

Planning for success

This is the most  important time of year for most retailers worldwide. Many make most or all of their profit in the Golden Quarter. And while many businesses may have survived previous peak seasons, the world of retail and the behaviour of customers is constantly changing. 

Outside of this upcoming quarter, an effective year-round retail strategy allows you to ensure your operations support your goals and objectives beyond the peak season. 

As a leading retail consultant, we are here to help you build a successful strategy that increases revenue and sales. We specialise in inventory management, allowing you to accurately predict the stock required to meet customer demand in the most profitable way possible. 

Get in touch with us today to find out more about how we can help your brand.