Merry Merchandising Crosses All Kinds of Retail

By Dorothy Creamer, Editor
While the seasonal marketplace is definitely a place unto itself, there is a divide within that retail subset. With online merchants, pop-ups, mom-and-pops and big boxes all struggling for a piece of the proverbial holiday pie, it often seems like there couldn’t possibly be enough consumers to go around. Each of these different business models require different approaches to merchandising, stocking and marketing in order to thrive.

The Pervasive Holiday Universe
Many smaller retailers bemoan the fact that seasonal is no longer a niche, with everyone from mass retailers to food stores getting into the holiday game. With certain merchants being able to offer shoppers a one-stop-shop, the marketplace has become saturated and more competitive than ever.
CVS boasted a “larger-than-ever selection of gifts in more than 7,200 stores nationwide” in 2011 according to Erin Pensa, a spokesperson for CVS/pharmacy. “At our stores, a customer can find something for everyone on their list but it doesn’t stop there. They can also find all the trimmings – such as gift wrap and decorations for their house.” CVS begins rolling out its full holiday collection in nationwide locations in early November.

Similarly, Home Depot has expanded its holiday offerings to include everything from trees to all the trimmings. The retail giant has increased the number of Christmas-related items by tenfold and sales have increased by 300 percent. “It is home improvement for the holiday season,” Scott Manning, merchandising vice president/holiday, states.

Midland, TX-based Miss Cayce’s is a temporary holiday store, co-owned by sisters Becky McCraney and Kathy Harrison, that opens every September through January. They have been in the holiday business for more than 27 years. “We open a new store every year,” McCraney explains. “We paint walls, shop estate sales for props, have our dad build displays etc. We get all the background in place before merchandise starts shipping.”

Miss Cayce’s has attempted to increase its reach with its Show Me Decorating brand. In 2010, the company launched the Recipe for Holiday Decorating App for the iPhone and iPad. This app provides step by step techniques for decorating a beautiful tree.

Big department stores such as Macy’s have the brand recognition and marketing clout to be able to roll out splashy holiday public relations schemes. In 2008 Macy’s launched its “Believe” campaign. “We continue to add new, exciting elements each year to engage and inspire our customers,” Kristina DeGrocco, media relations manager, explains.

In 2011, Macy’s added a new component to the Believe campaign that will continue in 2012 with 14 fantasy Christmas trees inspired by celebrities ranging from Jessica Simpson, Martha Stewart and Donald Trump to Emeril Lagasse. The trees are displayed at the Macy’s Herald Square in New York and can be viewed online. The trees will be auctioned off with interested buyers bidding on the trees online and 100 percent of the funds will benefit the Make-A-Wish foundation. The celebrity ornaments will be available for regular purchase at Macy’s stores.

Creative Sales
Year-round holiday stores face many challenges, the most daunting of which is maintaining year-round sales. “Business is hard,” JoAnn Hershberger, owner of Tis the Season Christmas Shoppe, in Millersburg, Ohio, states. “If it weren’t for our grab bags that we do starting on March 1 every year to get rid of red tag merchandise, I honestly don’t know what would happen in March and April.”
Tis the Season’s policy is that once an item is four years old it is out of the merchandising mix. “We don’t do a sale room because it tends to look junky,” Hershberger explains. “We will discount an item 40 percent and it gets a red tag but stays in the mix. If it still doesn’t sell we take an additional 50 percent off and after that put it in a grab bag. This is a $40 grab bag for $10. The shoppers can’t see what’s in it, but every year, people come in to buy these grab bags.”

War of the Web
Debi Thomas, owner of Canoga Park, CA-based Traditions believes that the “unknown competitor” is the greatest challenge. “Honestly, it is not competition from other holiday stores,” Thomas states. “It is the person who isn’t running a legitimate brick & mortar, but who is selling stuff on Ebay at reduced prices, not paying taxes.”

While online merchants often are a cause for concern for brick & mortars, many retailers have embraced web-based shopping carts. City Lights Collectibles in San Diego regularly ships into Europe and Canada everyday and keeps a running log of where they have filled orders. “It’s very competitive [online], but we will not discount,” Young states emphatically. “Whenever a customer asks me if we discount, I always say, ‘Let me talk to my landlord and see if he’ll give me a discount on my rent.’”

Young also admits that part of the problem stems from vendors becoming retailers and selling direct to customers. “We monitor the Internet and the minute we see someone that’s not a storefront selling from their home or garage, we make vendors aware of it,” he declares.
 
While some importers are vigilant about monitoring online resellers themselves, Young bemoans the fact that many are not. “Some are just not bothered by it, but it destroys the value and collectible mentality of products,” Young insists. “It’s not right and vendors should protect their product and stores.”

Co-existing in the Christmas Kingdom
In some ways the battle lines have been drawn between the various providers of seasonal products. “Our goal when buying is to try to stock what our shoppers won’t find at the local Walmart,” Hershberger explains. “I try to stay away from the big box type of products. I always take one day to go to other stores in the area with my managers and see what they do. If we see what we have in two other stores, we discontinue it.” 
 
Hershberger also believes that one of the worst ideas for a vendor is to get their product on QVC. “I have no desire to compete against QVC,” she states. Hershberger recalls that she went so far as to call one of her vendors that began selling on QVC. “They said that they weren’t selling the same items to our store, but it makes me leery,” she asserts. “I don’t want a customer to say that they could get this elsewhere. If I hear that – we’re done. Trying to make a living as a year-round Christmas store – you have to have limits.”