By Gerald Friedler and Jon Hauptman, special to GMDC
Seasonal merchandising has emerged as a powerful source of growth for mass-market retailers, offering double-digit annual sales increases in many instances.
A recently released GMDC industry report titled, Seasonal Best Practices: A Plan for Seasonal Merchandising suggests that one way retailers can establish competitive advantage during a season is by developing a comprehensive total store seasonal offering in which all departments with seasonal products participate. Combining the strong seasonal offerings found in different departments across the store, retailers can create a unique environment that makes the store the best place to shop for that season. Such a coordinated approach will help retailers:
- Effectively differentiate their seasonal solutions in today's competitive retail marketplace.
- Establish the store as a destination for all of a shopper's seasonal needs.
- Improve the store's competitive position without lowering prices.
- Drive seasonal sales growth and shopper satisfaction.
For example, some retailers have established their stores as preferred destinations for Valentine's Day by combining appropriate products from general merchandise (greeting cards, plush toys), health & beauty care (fragrances), floral (roses), bakery (cakes), liquor (wine), and grocery (candy, etc.) into a single, dramatic solution-center. Some stores have even established dedicated checkouts adjacent to the solution-center display for the two-to-three days leading up to Valentine's Day to make the shopping experience even more convenient.
However, leveraging the power of a retailer's total store merchandising assets is easier said than done. Most department managers are used to designing their own seasonal programs and have not been encouraged nor rewarded for working with their counterparts across the store to develop total seasonal solutions.
Discussion Questions: What are the key barriers preventing departments from working together more closely on seasonal programs? What can be done to remove these barriers? What role can/should CPG suppliers play in helping retailers develop and execute inter-department seasonal plans?
CLICK to download a copy of GMDC's industry report, Seasonal Best Practices: A Plan for Seasonal Merchandising