Reaching the Peak

The Golden Quarter for retail is upon us and hopefully, by the end of the year, the figures will be reporting a successful Christmas period for retailers and pointing towards an even rosier outlook for 2025. Since the last retail peak season we have had a change in government and there is noise that the intention is to introduce economic policies designed to boost disposable income, including raising the minimum wage and public sector salaries. The potential increase in spending power for some is offset by the worry for many that increased taxation will mean the cost of living crisis will continue to leave its unwelcome mark.

Alongside this Labour has also pledged to reform the business rates system, which is a major burden for physical retailers. Their proposed new system of business property taxation aims to reduce costs for high-street shops, levelling the playing field between brick-and-mortar stores and online retailers. This is expected to reduce operational costs, allowing businesses to invest more in customer experience and competitive pricing.​

Focus on revitalising the High Streets will be very much welcomed, whether through the aforementioned reduced taxation for brick-and-mortar stores or measures like introducing banking hubs and cracking down on shoplifting by increasing police presence. These efforts are designed to create safer, more vibrant shopping environments, which could attract more foot traffic and increase sales for local businesses​.

The reality though is that it’s too early to say what impact the new government will have on the fortunes of the retail sector in the UK, so retailers need to focus on maximising the opportunities that the peak season presents, seeking wherever possible to boost sales and leave a positive lasting impression with customers. The challenge is tough. While high inflation is perhaps not the worry of 12 months ago, rising living costs are still very much having an impact and then there are factors such as staffing challenges and store closures. To ensure a successful golden quarter, retailers must take a strategic approach. By prioritising adaptability, customer engagement and operational efficiency, retailers can stand out and remain competitive, even as consumers potentially cut back on spending.

Success during this time also demands careful planning, strategic insight, and perfect execution. Without proper preparation, retailers risk missed opportunities and unhappy customers. To make the most of the peak season, it’s essential to start planning early. This involves setting pricing strategies, organising promotions, staffing, launching marketing campaigns, and making any necessary operational adjustments, such as embracing digital transformations or strengthening supply chain resilience.

First and foremost, adopting an omni-channel approach that seamlessly blends online and offline shopping experiences is essential. Offering customers the flexibility to research, purchase and receive products across multiple channels ensures a smooth and convenient shopping experience. This should be viewed as a long-term strategy, not a short-term solution, as it creates a strong foundation for attracting, converting, and retaining customers.

Another overlooked strategy which has caused a lot of customer irritation for many retailers and online stores during a Black Friday or an event is website load capacity. We’ve seen it countless times where websites have crashed on the customer due to an overwhelming amount of traffic to the site, this in turn can cause a spiral of negatives, ranging from loss of sales, loss of customers and negative reviews. It’s 2024, there shouldn’t be a situation where the website is overloaded and subsequently crashes due to traffic load, this is a recurring theme for many businesses and sites and needs to be taken seriously in the planning stage.

To read the published article by Dan Todaro, Gekko Group CEO, please visit ERT