Unwrapping holiday sales opportunities for Home Improvement / DIY retailers
Ho Ho Ho! Christmas is finally here!
People are in their warm and cosy homes with their loved ones, sitting around their beautifully decorated trees, exchanging gifts. The question is: Are you there to share these joyful moments with them?
Retailers have always strived during this holiday shopping season to catch the shoppers’ eyes.
However, it looks like the Home Improvement could sometimes use a little boost...
According to the National Retail Federation, 16.1% of the annual sales in this sector is generated from seasonal holiday sales. In 2017, this accounted for $60.5 billion in the United states alone. Yet, according to Home Depot, the lowest amount of sales happen in the first and the fourth fiscal quarters.
Two plus two equals four! Need we say, it is worth it to have a strong Christmas Holiday strategy!
How Home Improvement / DIY retailers can bring Christmas cheer to their stores?
One for all, all for one - Come together to promote the industry, not only the brand. One of the reasons the sector sits back during Christmas holiday is the high costs of holiday marketing campaigns. But you know the rule of thumb: the more you’re seen, the more you sell. Through collaboration, DIY retailers can promote their products at a lower marketing cost and still create the need and desire for home improvement & repair, breath taking Christmas & garden decorations for the holidays, and DIY gifts.
Data brings you wisdom, and wisdom brings you power - Harness the power of big data to forecast what will be in your customers’ baskets and when. Make predictions on an individual level. Amazon is already using machine learning to wow its consumers through unique shopping experiences. Based on a survey conducted by National Retail Federation, 24% would like to receive Home Decor and 18% would like to receive Home Improvement Items & Tools. In 2017, 42% shopped in November. By aggregating data, you can target the right people at the right time!
Multichannel customers have the highest share - Promote and offer your products, services, gift guides or even How-to videos through multiple channels. Consumers turn to media for inspiration. Facebook, Pinterest and Youtube are the leaders in home improvement.
Get on top of your supply chain game - Susan Reda, editor of STORES media, predicts supply chain advances, efficiency, and automation as key success factor for retailers in 2019. Long-term forecasting, inventory management, capacity management, and data analytics are also the most critical elements of a Christmas holiday supply chain.
Smarten up your promotions - First, you need promotions to bring foot traffic into your stores. Offering limited-edition and in-store products or click-and-collect sales are popular examples of how to make impulsive shoppers into customers by simply inviting them in. Second, you don’t necessarily have to lose margin when promoting your products. Create a smart promotion strategy with the lowest cost and maximum effect, for example bundle certain products in a gift basket or make shared-gifts possible for high price tags. Speaking of sharing, don’t forget the shared economy. Offer rental tools for home repair or DIY gifts.
You’re not immune to the spell “Cadabra”, which later was called Amazon - Amazon is catching up to the Home Improvement and DIY sector. Its focus is mostly on tools, smart homes, Internet Of Things and security. It’s changing consumers’ expectations and shopping behavior by putting everything in a box, even live seven-foot Christmas trees!