Welcome to the last quarter of 2020. What a year it’s been already.
For many in retail, what happens over the next 3 months traditionally determines the success of the full year for the business. We have been asked several times recently what the next three months look like.
Considering sales data from plenty of business and from many different types of retail businesses, we share some thought below on what we expect. Of course, our expectations are based on current Corona trajectories as at the start of October 2020. Any change to that will impact these.
- Christmas is here, now, early. Christmas purchasing started over a month ago with sales of specific Christmas products including cards, decoration and Christmas themed items already good. People appear to be shopping to be prepared for possibly another lockdown. Some are also buying because of worries regarding the supply chain.
- Working from home is here to stay. retailers selling products that help with working from home should have a good quarter if they continue to leverage this opportunity. There is no sign of working from home slowing, which will impact businesses that rely on major CBD business worker traffic.
- Regional / rural property sales are strong. Property sales in regional and rural locations have surged, bringing in more people and plenty of new faces, which bring in new shopper opportunities. Serving new residents plays well for some retail sectors like garden centres.
- People want to be happy and give happiness. Offering products that will make people happy is key to a good fourth quarter.
- Locally made. This matters more than ever.
Focussing on these and related points positions your business well for a good last quarter.
Thinking predictions, we think that businesses that rely on strong Christmas trade have reason to expect this year to be at least as good as last year. We know one business that does more than 50% of their revenue through the Christmas season and current indications comparing this year to the last 2 years suggest they will be up this year by 20%. The product mix is the same.
The success of this last quarter really relies on your product sourcing, in-store messaging and out of store marketing … your connection with the emotional messages that matter to people, that will get them purchasing through you.
The time to act on Christmas 2020 was months ago. If you are starting now, go for it, quickly and engagingly as Christmas shoppers are spending today.
We hope that this last quarter of 2020 is awesome for your retail business and all who rely on it!