Timeline to Christmas: Range & Merchandising
Get the gift you really want this Christmas: Profitability 🤑 🎄 🎁
Profitable Peaks
December is one of the most revenue-generative months for many brands. However, if that revenue boost doesn’t lead to a corresponding profit increase, it can feel like all your hard work was in vain.
Your product range and merchandising are two of your most powerful tools for maximising profitability during this crucial time.
We’ve shared some top tips on how to do just that—so you can have yourself a merry little Christmas.
Maximise AOV
Q4 usually brings an uplift in AOV, but Christmas 2023 saw a 5% drop* as consumers placed smaller orders due to the Cost of Living Crisis.
Investing in quality photography can premiumise your products, making them feel irresistibly ‘gifty’. Curating products into gift sets can also encourage customers to trade up—especially if they're beautifully shot.
Top tip: Include an odd number of items in a set—it can help make it look more generous
Drive Repeat Purchase
With increased traffic to your site in November and December, it’s a prime opportunity to showcase how many recipients and occasions you can cater to. Use well-organised navigation and clear signposting, like naming, badges, and seasonal edits, to guide customers to the perfect products.
If you’re ahead of the game, you can also highlight collections for future gifting peaks.
Even if it’s just a preview, showing that you’ve got Valentine’s and Mother’s Day covered can help set you up for success in Q1.
Manage Costs
During peak season, inflated labour costs and the risk of waste from hyper-seasonal products and packaging can quickly eat into your hard-earned profit margin.
Consider flexible, low-risk ways to give your products a seasonal touch, like using stickers, sleeves, photography, and naming, to help keep costs in check.
Finally, make sure your team is clear on which products need to sell out before Christmas and which can carry over into the new year to inform their trading strategy.
*https://homeofdirectcommerce.com/news/healthy-growth-for-retailers-over-the-festive-period-but-buying-habits-shift/