With the holiday season just around the corner, Australian retailers are bracing for the busiest and most critical time of the year. For small and medium-sized businesses, profitability during this period hinges on planning, agility, and the right tools.
With Zeller supporting over 65,000 small and medium businesses and retailers across Australia, we’ve witnessed firsthand the strategies that can make a tangible difference. Here’s a comprehensive checklist – focusing on inventory management, payment processes, and the omnichannel experience – for retailers seeking to maximise profitability this holiday season.
Smart inventory management & stock forecasting
Inventory is one of the biggest investments a retailer makes, and managing it well is crucial during the holiday rush. Seasonal fluctuations in demand and supply chain uncertainties only add to the challenge.
To navigate these hurdles, a proactive approach combined with data-driven flexibility is essential. Start by analysing sales data from past holiday seasons to anticipate stock needs. This year, focus especially on high-demand products and avoid overstocking slow movers to minimise markdowns after the season.
Seasonal and holiday-specific products should be a priority; these items not only drive revenue but also enhance the holiday spirit for shoppers. For instance, if you sell clothing and apparel, prioritise summer items like swimwear and beach towels rather than scarves or woolly hats to align with customers’ needs during the warmer months.
An automated inventory system can be a game-changer here. It can help track real-time stock levels and reduce errors, ensuring you’re prepared to adjust stock levels as demand fluctuates. Reliable POS (point-of-sale) systems with built-in inventory tracking give retailers instant visibility, which is key for keeping shelves stocked and customers happy. It’s also critical to collaborate closely with suppliers, communicating peak needs in advance to avoid delays or last-minute shortages. Your advanced forecasting using historical data helps here.
Seamless payment solutions – build efficiency into every checkout
A smooth checkout experience is a must for customers, especially when stores are at peak capacity. Shoppers who encounter delays, system failures, or long lines may walk away empty-handed, leading to lost revenue. Your POS system should be equipped to handle higher transaction volumes with ease and speed.
An all-in-one POS system that integrates with your payment solution improves efficiency and provides valuable insights into what’s selling. Sales insights during the holiday season are invaluable— allowing you to track best-sellers, identify peak trading times, and adjust inventory or staffing as needed. Also, consider mobile POS options that can handle transactions on the floor, reducing congestion at the counter and providing a more flexible experience for customers.
Connect online and in-store experiences
Today’s customers often shift between online and in-store shopping, especially during the holidays. An omnichannel approach can help unify these experiences, driving more sales and reducing friction.
Click-and-collect or in-store pickup options, for example, meet customers’ needs for convenience. During the holidays, ensure your inventory system is synced across channels so customers can see real-time product availability. If they know an item is in stock at their local store, they’ll be more likely to make the trip.
Promote in-store exclusives online and vice versa to build a seamless shopping experience. For example, drive online customers to your physical store by offering exclusive holiday promotions, or entice in-store shoppers to explore your website for extended product lines or special offers. Social media is also a great tool for reaching these audiences. During the holiday season, use platforms like Instagram or Facebook to keep customers updated on stock, promotions, and store events in real time.
Create a memorable customer experience
Finally, a memorable customer experience can be the deciding factor for holiday shoppers who might become your long-term customers. With the busy holiday season often causing stress, a friendly, helpful interaction can stand out, creating lasting loyalty.
Train your staff to anticipate customer needs, from helping with product selection to resolving issues quickly. Consider designating a “holiday host” to help manage customer flow and answer common questions, ensuring that customers feel supported and valued.
Personalisation is a powerful way to enhance the customer experience, even in small ways. Whether it’s holiday-themed packaging or a simple gift-wrapping station, these touches make shopping more enjoyable and festive. Also, consider implementing or promoting a loyalty program—offering incentives for frequent purchases can drive repeat business during the season and into the new year.
Setting the stage for year-round success
While holiday sales represent a critical boost for retailers, these strategies are valuable beyond December. A thoughtful inventory approach, reliable POS and payment options, and a seamless omnichannel experience establish a solid foundation for year-round success. Small retailers who leverage data, prioritise customer convenience, and remain agile will be best positioned to meet challenges head-on, no matter the season.
Josh McNicol is director of growth at Zeller.