by James Mason
16 December 2011
Black Friday; who cares? We should, and here’s why…
The day after Thanksgiving Day in the United States is often referred to as Black Friday. Officially, it’s the first day of the Christmas shopping season for our cousins across the pond and, traditionally, the day when retailers come out of their overdrafts and go into the ‘black’. Whether this is totally true or not matters little; what is important is that we understand the issues surrounding retail patterns and learn how to use them.
On the day
Staffing
Where appropriate give key members of staff something extra at Christmas. From a tax perspective, you can give a ‘trivial’ gift up to £50 without too many HMRC problems and spend up to £150 each on a Christmas party; but the subject of taxation and what you can give to an employee can be complicated so check with your accountant.
Christmas Spirit
There is no greater a time when the need to have a good vibe in the shop is at its most important. I always think of Scrooge at this point; indeed, I have made written reference to him before. Do as much as you can to pump-up the spirit of Christmas at this time of year. Customers really pick up on a positive vibe. Quality Street and Christmas carols are my favourite.
Bargains & Discounts
Everyone loves a bargain as they say, and this is a good time to start the process of clearing out what you think won’t sell in the following year. Discount product ranges too so that you become known as being the best value in town for certain things. It’s the ‘cheap bread at the back of the store’ principle, and it works.
Finishing off
Stock-taking
In the hospitality trade it is not uncommon for a bar or restaurant to check its stock position twice a day (!). I’m not suggesting that standard retailing needs to do this but on the flip side I have known people struggle with undertaking the exercise once a year. Make the effort to always know what you’ve got, what cost you what and what you need to get rid of.
New Year Sale
The end of year sale, or any other sale, is a golden opportunity to capitalise in a number of ways. Don’t do what a lot of retailers do and simply put up a sign and take 50% off everything. That’s not a sale, that’s a discount. Work your stock position to see what you can make out of it. Use all your VM and other skills to maximise margins and volumes.
And finally
Retailing is brilliant. You buy stuff and sell it for more than what you paid for it. Do enough of it and the collective margin out sizes all the other costs. Before you know it you’re making some money and having fun. However, retailing has possibly never been harder. Peter Green has problems and who would have thought Comet could go bust. My advice is to stick to the principles and watch the detail. Have a great Christmas and from all of us here at Fifth Element, a very happy New Year to you all.