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18 ways retailers can maximise their January Sales

January SalesMajor high street retailers like John Lewis, Oasis, Jones Bootmakers, New Look, Top Shop and Multiyork use a fascinating array of techniques to encourage consumers to spend more during their promotional sales periods. Here are 18 key insights that independent retailers can learn from the bigger multiples when launching their January Sales:

 

1. Sales aren't all about clearance items

Multiple retailers, like John Lewis, buy in stock known as Special Buys to sell at discounted prices during the sales. This buying accounts for a significant proportion of what is sold to consumers during the sales. Plan to have stock that you can sell specifically during your sale period instead of just focussing on left over stock clearance.

 

2. Visual display merchandising is key

As one John Lewis merchandiser points out " We've got a lot of expensive product so if you want to sell it you have to display it in a way that makes people want to purchase them.” How you present your sale items and the signage you use will boost your sales. Make it tempting.

 

3. Mark downs must be carefully considered

Jones Bootmaker’s entire senior management team spend 2 whole days locked in a room deciding what goes on sale and at what discount. 40% of annual sales for their business are taken during the winter and summer sales so their decisions are vital to the profits and turnover of the business. Too much discount and they lose profits, too little and they get stuck with dead stock. Make time to focus on getting your offering right.

 

4. There are rules to discount signs in your windows

Legally you can put up a 50% off sale sign in your window as long as at least 10% of your stock has a 50% discount and it has been on sale at the list price for a meaningful length of time. Multiyork's MD suggests this should be around 28 days. Ideally you should state when the item was on sale at the list price.

 

5. Phasing down drives sales

If you stagger your sales discounts down in stages it helps to drive sales. Consumers then have to weigh up the choice between buying it at the current discount and having the item they want or waiting for the price to drop further and risk the product being sold out. Multiples use phasing down pricing as a call to action for shoppers to buy then and there.

 

6. Other clearance channels

Jones Bootmaker has a warehouse clearance sale that it markets in a very small way in it's local area. What they don't sell there they clear to traders abroad and remove the branding from the shoes so that it doesn't damage sales in the UK. It's worth having other channels to clear your dead stock. eBay, craft fairs and car boots are all options to consider.

 

7. Understanding Oniomaniacs

Oniomania is the technical term for shopoholism which affects 1 in 10 people. Bargain hunting physically affects the pulse and stress levels of shoppers. Dr Jack Kreindler has tracked shoppers and discovered that their heart rate increases from 60 to 100 beats per minute when they find an item they like and stress / excitement levels rise from 20% to 80%. According to retail psychologist, Dr David Lewis, the body also releases reward chemicals when shopping. Essentially shopping can be addictive and your sales bargains can feed this.

 

8. Presenting sale items like a jumble sale can drive engagement

Shoppers can add value to a sale item in their mind because of the time they have spent searching through other items for bargains they have found. The longer they spend searching through sale items in your shop the more they engage with your products and the more likely they are to value them. Also, the more products customers touch in your shop the more they are likely to make purchases.

 

9. Discounting is expected in some retail sectors

£12 billion is spent each year in the UK on furniture, something which is not regarded as an essential purchase by most consumers. The furniture industry permanently run sales and offer free credit to enhance sales. 75% of furniture sold by MultiYork is sold at discounts of between 30 and 50%. Consumers expect this of the furniture sector so it's a must have marketing ploy for furniture retailers. Be aware of what customers expect of you in terms of sales discounts so that you don’t disappoint.

 

10. Personal Shoppers boost sales

Shops like Top Shop are now offering personal shopping experiences where clients can get assistance with choosing what to wear and what looks good on them from the latest season. Sales staff that meet consumers needs well will always help any retailer's profits.

 

11. Retail interiors add to the experience

Oasis spent £7 million refitting their stores focussing on a sensory experience for their customers. In their flag ship store the downstairs area is fresh and bright and upstairs is moodier and more atmospheric. The railings are positioned to be more inviting for customers. These experiences affect the mood and encourage shoppers to spend.

 

12. The customer is the fairest of them all

The mirrors in one of fashion retailers are often large and lean against the wall. This looks aesthetically good and also had the effect of slimming the person standing in front of the mirror. The lighting and the mirror are set up to make the customer appear to glow in their chosen garments. Creating a satisfying feeling for customers is important.

 

13. Smells are not to be sniffed at

Oasis has a machine that scents their retail space. Smell is a trigger for contextual memory which can help put clients in a good mood and encourage them to spend more. Using a machine called ScentAir, smells like vanilla may increase customers' perceptions of trust worthiness of sales staff, make them 84% more likely to purchase and can even mean that they value products more highly.

 

14. Getting customers to join your club

High Street retailers are using social media to help consumers feel part of a community and to create loyal fan bases. New Look have over 3 million Facebook fans and a customer email list that they send flash sale deals to which drive turnover. Can you use these to boost your sales?

 

15. Fans feel special

New Look often tweets their followers to come in for a surprise and amazingly they do respond. They literally draw customers into their stores by inviting them on social media. These customers love being the first to know about a deal that they could share with their friends. Looking after fans who refer you to others like this is key to any successful business.

 

16. Product layout boosts sales

Using a pair of eye tracking glasses (tobii glassesDr Tim Holmes, a neuroscientist, shows how our eyes are drawn to blocks of texture and colour when shopping. For example, when grouped in colours, products like shoes help to draw the eye around the store. If the shop is well laid out, retailers can use this trick to draw customers deeper into the store.

 

17. The power of suggestion

Some shops have suggestive slogans on the walls which we register in our brains even if we don't seem to notice them. The entrance to the shoe department at New Look had a sign which says "Shoe Heaven" and a slogan on the wall that said "Repeat after me: 'I deserve new shoes'." You can have a lot of fun with this kind of marketing.

 

18. Red sale signs

Red is a colour that really stands out against others so is perfect for Sale signs that they draw the eye. Too many red signs and the effect is ruined. Too garish and badly type set signs also cheapen your offering.

 

Retail sales are exciting. Consumers who love to shop do love sales. It's thrilling to find deals and even more exhilarating if there is a limited time to do this in. Retailers that do well during their January Sales take advantage of this knowledge and create experiences that give customers what they want: some fun and excitement at a price they feel is a bargain.

 

Read more:

 

How to get more customers into your retail business

7 Habits of Highy Effective Retailers

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