Sell More With Year-Round Retail Holiday Marketing

Sell More With Year-Round Retail Holiday Marketing

After several years of restrictions, shoppers are increasingly looking for opportunities to celebrate their lives. While many retailers make a significant portion of their sales at the end of the year, there are a lot of other seasonal holidays that can help to spread out sales throughout the year.

If you’re looking for merchandising ideas and sales opportunities, consider adding some of the following celebrations this year to your retail holiday marketing calendar.

Winter Holidays

  • February
    • Black History Month (February)
    • Lunar / Chinese New Year, Asia
      • Note that this holiday follows a lunisolar calendar. Therefore the timing of the holiday changes every year and can start any time from the end of January to mid-February. It is usually a 3 week festive period with the first day being celebrated as the New Year day. For the New Year day in the Gregorian calendar until 2031, you can refer to this website.
    • Super Bowl Sunday (February 13) 
    • Valentine’s Day (February 14)
    • President’s Day (February 21)

Spring Holidays

  • March
    • Mardi Gras/Shrove Tuesday (March 1)
    • St. Patrick’s Day (March 17)
    • International Women’s Day (March 8)
    • Daylight Savings Time begins (March 13)
    • Spring Break/March Break (March 14 – 18)
    • White Day, Asia (March 14)
    • Holi Festival (March 18)
    • First Day of Spring (March 20)
  • April
    • April Fool’s Day (April 1)
    • Ramadan begins (April 2)
      • Note, this holiday is also dependent on a lunar calendar
    • National Pet Day (April 11)
    • Tax Season (April 15)
    • Good Friday (April 15)
    • Easter (April 17)
    • Passover (April 15 – 23)
    • Earth Day (April 22)
  • May
    • Wedding Season (May)
    • Graduation Day (May)
    • Ramadan ends (May 2)
      • Note, this holiday is also dependent on a lunar calendar
    • Eid al-Fitr (May 3)
      • Note, this holiday is also dependent on a lunar calendar
    • Cinco de Mayo (May 5)
    • Victoria Day, Canada (May 23)
    • Mother’s Day (May 8)
    • Memorial Day, US (May 30)

Summer Celebrations

Back to school retail holiday marketing
  • June
    • Pride Month (June 1- 30)
    • World Environment Day (June 5)
    • Father’s Day (June 19)
    • Juneteenth, US (June 19)
    • Summer Solstice (June 21)
  • July
    • Canada Day (July 1)
    • US Independence Day (July 4)
    • Islamic New Year (July 29 – 30)
  • August
    • Back to School season begins

Autumn Festivities

Halloween retail holiday marketing
  • September
    • Back to School season ends
    • Labor Day (September 5)
    • Grandparents’ Day (September 11)
    • National Hispanic Heritage Month (September 15 – October 15)
    • Autumn Equinox (September 22)
    • Oktoberfest (September 17 – October 3)
    • Rosh Hashanah (September 25 – 27))
  • October
    • Yom Kippur (October 4 – 5)
    • Canadian Thanksgiving (October 10)
    • Diwali (October 24)
    • Halloween (October 31)
  • November
    • Daylight Savings Time ends (November 6)
    • Singles’ Day, China (November 11)
    • Veterans Day, US (November 11)
    • Remembrance Day, Canada (November 11)
    • American Thanksgiving (November 24)
    • Black Friday (November 25)
    • Small Business Saturday (November 26)
    • Cyber Monday (November 28)
    • Giving Tuesday (November 29)
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Retail Marketing: Halloween Marketing Ideas

Retail Marketing: Halloween Marketing Ideas

Retailers are beginning to prepare for the holiday shopping rush, starting with Halloween. 

Prosper Insights & Analytics has reported that 2020 Halloween had an estimated spending of $8.05 billion which means that this is the perfect opportunity to kickstart your store’s marketing efforts before the holidays.

Halloween By The Numbers

Based on the National Retail Federation’s (NRF) 2020 Annual Halloween Spending Survey, almost 74% of shoppers aged 18-44 plan on celebrating the festive season this year – spending an average of $92.12 per person

The post popular items that shoppers are planning on purchasing include candy (95.66%), costumes (67%), decorations (76.16%), and greeting cards (39.66%)

With these numbers in mind, we’ve put together a list of Halloween marketing ideas. Keep reading to find out how you can take advantage of these insights and sell more this Halloween season!

4 Halloween Marketing Ideas To Help You Sell More

1) In-Store Merchandising 

pumpkin display halloween

28% of shoppers plan on gathering shopping inspiration from inside physical retail stores. 

Get shoppers through your door by displaying your seasonal merchandise (whether you plan on using an entire aisle or a single point-of-purchase display) at a prominent location.  Use proper signage to lead shoppers to your Halloween-themed merchandise and displays, will also make them more likely to purchase.   

Not selling Halloween-themed products? You can still decorate your store with some festive decorations and visual merchandising. Think about creating a window or point-of-purchase display that showcases products that you already sell – but with a twist. You can use spider webs, jack-o-lanterns, leaves, and fall colours (black, orange, red etc.) to spook things up. 

bats Halloween window display

2) Use Your Online Presence Effectively

Halloween pumpkins

35% of shoppers site online search as their source of Halloween shopping inspiration. Dress up your physical store for Halloween and add festive elements to your online presence as well. 

Completely revamping your store’s website is time-consuming and in some cases, it can be expensive. But adding a Halloween touch to your website can go a long way in getting shoppers in a festive spirit. Including Halloween images on your homepage, fixing themed add-ons, and adding pop-up designs are all cost-effective and easy ways to add a spooky feel. 

You can also drive more shoppers to your website by creating a separate page (a landing page) dedicated to Halloween. Here are a few tips: 

  • Create a Halloween gift guide for your shoppers that features all of your Halloween merchandise. If you don’t sell Halloween merchandise, consider posting helpful Halloween content. Some good content or blog post ideas include: “Halloween costume ideas for children”, “Halloween decor ideas”,”DIY costumes for adults”, and “tips for hosting a Halloween party”. 
  • Use Halloween keywords (this will help your store appear higher up in search). 
  • Promote any seasonal discounts or promotions that you are holding. 

Don’t forget to decorate your social media and email marketing campaigns for Halloween as well!

3) Google Local Inventory Ads (LIAs)

Google Local Inventory Ad

Considering that the majority of shoppers are planning to use a search engine as a source for shopping inspiration, it is also a good idea to run local inventory ads on Google. These ads are tailored to users based on their location. With these ads, shoppers will see in-stock product of local retailers in the area. 

Here are a few tips for optimizing your Google LIA campaigns: 

  • Target mobile shoppers: shoppers are searching on their phone before visiting physical stores to ensure that their trip is worth it. In fact, 86% of Canadian shoppers said they will go to the store to buy when that store has an item they need or want immediately. You can target mobile shoppers by placing a positive mobile bid adjustment to your campaigns. It’s best to boost ad groups/campaigns that have strong mobile performance. 
  • Adjust for high traffic hours: while you want to keep ads active 24/7, it is a good idea to boost ad performance during high traffic hours. This includes the hours that your store is open and when your shoppers are most likely to search. 
  • Consider physical location: Users closest to your store (20-35 km radius) are much more likely to visit than others who are. Target local shoppers by increasing bids for users that are closest to your store. 

For more information on how your retail store can easily implement Google LIAs to increase foot traffic and sales, click here

4) Add Halloween Products 

Halloween treats

If your store doesn’t sell any Halloween merchandise, you can consider selling seasonal items to boost your store sales.

The following are some good examples of how retailers can add in popular seasonal offerings: 


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Sell More: Post-COVID Black Friday Marketing Tips For Retailers

Sell More: Post-COVID Black Friday Marketing Tips For Retailers

Thanksgiving weekend (from Thanksgiving to Cyber Monday) is one of the biggest shopping events of the year. Black Friday will look different this year as more COVID-19 restrictions are being lifted. It will be a chance for shoppers to re-emerge in store to do their shopping.

This is the perfect opportunity for retailers to attract more shoppers with Black Friday marketing to increase store visits and sales. To take full advantage of the holiday weekend, retailers need to be prepared to meet shopper demand and expectations.

Despite the impact of the pandemic, Black Friday sales in 2020 were surprisingly strong. Although brick-and-mortar stores saw a decline in foot traffic and sales, 2020 was a year for e-commerce. According to Adobe Analytics, online sales in the US went up by a whopping 21.6% from the previous year.

From the same survey, it was reported that 44% of consumers planned to shop small and support local retailers. Compared to previous months, local retailers did see a 545% increase in sales around Black Friday. This is good news for local retailers who want to take advantage of the spending season.

Keep reading to find out how you can take advantage of these trends and increase your retail sales!

6 Retail Store Marketing Tips

1) Improve Your Local Online Presence 

Review your online presence for Black Friday weekend

Research shows that shoppers are looking to Google and conducting searches even more now prior to visiting physical stores. This shows that valid and accurate online information make it easier for shoppers to purchase in-store. This means that, even without an online store, it’s important to improve your online presence.

If your business cannot easily be found online, there’s a large chance that you are losing out on potential shoppers to your competitors. Here is a quick checklist that will help you review how your retail store appears online: 

  • Check to see if you business information and holiday hours are updated on Google My Business.
  • You can use tools like Yext to run a scan of how your business appears on listings / online directories across the web (Google, Yahoo, Bing etc).
  • If you’ve moved or want to be found on more local directories, sign up for a one-time local listing service through services such as The Hoth or Fat Joe.
  • Encourage or even offer a small incentive to get your happy customers to leave a positive review on your Google My Business store profile. Make sure that you reply to customer reviews whether they are good or bad. You’ll want to ensure that your customers are regularly leaving reviews as 90% of customers read online reviews before visiting a business. Click here to find out how you can gather more positive reviews for your retail business. 
  • Retailers with websites need to make sure that their websites are mobile-friendly. You can use Google’s Mobile-Friendly test to check how easy it is for shoppers to view your website on their mobile phones.

2) Engage With Shoppers After The Holiday Weekend Is Over

Black Friday Sale

Over 56% of 2018 Black Friday shoppers still had holiday shopping to complete after the weekend was over. And the majority of shoppers (92%) believed that the strong deals offered over the weekend would continue or improve throughout the rest of the holiday season.

This means that in order to capture this chunk of customers, retailers should build on the existing interest and run promotions or events even after the Black Friday weekend. To reach as many shoppers as possible, run email marketing campaigns possibly together with digital marketing ads to promote your unique products and deals! 

3) Partner Up With A Local Business 

partner up with a local business during Black Friday

It’s hard for small retailers to compete with big-box stores on Black Friday or Cyber Monday. Slashing prices in an attempt to increase traffic and sales just isn’t good for your profit margins. But with 65% of shoppers indicating that good deals are their main motivation for Black Friday weekend shopping, you still need to find ways to stand out.

By partnering with local businesses, you can provide unique deals that shoppers will have a hard time passing up. And this way, you don’t have to risk low profit margins. In fact, you can still sell products at regular price or even at a premium.

The best collaboration strategies include: 

  • Selling products in bundles: Packaging products that complement each other in one product bundle is a great way to increase your store’s average order value. For example, pairing three lipstick shades with a skincare product or, bundling sweaters with a free bag. In order for this strategy to work, it’s obviously a good idea to partner with another retailer that sells complementary products. 
  • Offer partner promotions / discounts: Another effective strategy includes cross-promoting. For example, shoppers will receive 10% off of total sale or free shipping at your partner’s business when they purchase $50 or more at your store. You can print promotional material on your receipts and customers can use this as a voucher. 
  • Host in-store or online events: You can also team up with local businesses to host special events. For example, you could partner up with a nearby restaurant to host a late-night open house or extended seasonal hours. Remember a good chunk of shoppers view Black Friday as something fun – 17% of shoppers see it as a group activity with their friends / family and 21% of shoppers say that it gives them something to do

4) Offer Exclusive Benefits To VIP Shoppers

Black Friday exclusive offers

Black Friday is a great opportunity to strengthen your relationship with your most loyal shoppers. After all, they are best customers and the ones most interested in your products.

By adding exclusivity to your email marketing campaigns, you increase psychological rewards like a sense of belonging and importance. This is why exclusivity makes your promotional offers appear more attractive to shoppers vs. simply pricing and encourages them to visit your store.

Remember – shoppers receive too many emails during this time of year. So make your emails stand out with:

  1. Clear offers in the subject line (for example: Exclusive VIP Sale) 
  2. Personalized subject lines (personalized subject lines are 26% more likely to be opened). Or, you could include the shopper’s first name in the email opening line. 
  3. A short, simple, and to the point message. 

 5) Promote Urgency

Promote urgency during black Friday

The majority of shoppers (92%) believe that strong deals will be offered all throughout the holiday season. And with so many competitors offering deals during the weekend, shoppers are left with a lot of decisions to make. That’s why it’s necessary to create a sense a urgency with your Black Friday marketing campaigns.

Urgency is a widely used marketing tool in retail. And for good reason – creating a sense of urgency in shoppers increases demand and ultimately leads to more purchases. Create an incentive for shoppers to take action by running your promotions for a limited time. One effective way to create time pressure is to include a countdown timer on your website or in your email campaign. Show your shoppers how many days, hours, and minutes are remaining for them to get a deal on their favorite items. 

6) Highlight Stock Availability

Google Local Inventory Ads for Black Friday

Stock availability is a type of FOMO or “Fear Of Missing Out” that encourages shoppers to take action. It’s a good idea to emphasize that certain items are limited or low in stock in your marketing campaigns or on your e-commerce site. If you do not have an online store, it’s a good idea to run Google Local Inventory Ads and take advantage of digital marketing that helps you promote automatically based on product availability. If your POS is linked directly to these type of Google Ads, stock availability will adjust based on real-time shelf quantities and save you the hassle of manual updates.

These ads work by targeting nearby shoppers who are searching online for products that your store sells. Google LIAs are effective because they capture shopper intent at the moment that they are looking to purchase.  Click here to learn how your store can easily implement Google LIAs together with your POS system to increase store sales and foot traffic. 

Omnichannel Shopping Are The New Reality Of Retail

It turns out that these shoppers are more valuable too. 73% of shoppers are not just shopping either fully online or in-store. These people are called omnichannel shoppers who go through their buying experience in more than one way. According to the NRF, shoppers who used more than one way to look for deals spent up to $93 more than the single channel shopper. And according to another study, multi-channel shoppers have a 30% higher lifetime value than those shoppers that only purchase from one channel.

Regardless of what stage you are at, moving your retail business online, consider the strategies above to improve how well you serve your customers online this year during the all-important holiday shopping season.


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Retail Marketing: The Benefits of Digital Marketing

Retail Marketing: The Benefits of Digital Marketing

As a retailer, you may be wondering “what is the best way to drive foot traffic to my store?” The obvious answer is that you need to focus your efforts on marketing.

 The not so obvious part is deciding how to spend your marketing budget to get the best results.

What Marketing Approach is Best for My Retail Business?

Over the past few years, the way shoppers buy from and interact with retailers has completely changed. Yet, the way many retailers are marketing to target shoppers has stayed the same.

Shoppers are spending more and more time on the internet. In fact, 87% of shoppers begin their product searches online!

This is why it has become necessary to have an online presence – no matter what you sell.

So if you are looking to increase store traffic and sales, you may want to consider implementing digital marketing in your business strategy.

But first, let’s go over the different marketing methods in detail.

online search

What is Traditional Marketing?

Traditional marketing refers to the use of conventional (older forms) of media to reach a mass audience. It can be divided into 4 main categories:

1. Direct Mail (postcards, catalogs, flyers)
2. Print Ads (magazines, newspapers, newsletters, brochures)
3. Telemarketing (cold calling)
4. Broadcast (radio, T.V, etc.)

Traditional marketing uses interruption to gain the attention of shoppers.

newspaper

What is Digital Marketing?

Digital marketing refers to the use of online tools to target ideal shoppers. It includes:

1. E-mail Marketing
2. Social Media Marketing (Twitter, Facebook, Instagram, LinkedIn etc.)
3. Search Engine Optimization (SEO)
4. Search Engine Marketing (SEM) & Pay-per-Click Advertising (PPC)
5. Content Marketing

Rather than interruption, digital marketing focuses on delivering useful information at the exact moment that target shoppers are looking for it.

SEO image

What are the Benefits of Digital Marketing Over Traditional Marketing Methods?

Easily Measure Marketing Campaigns

Traditional marketing methods are difficult to track. For example, how do you know how many people saw your newspaper or magazine advertisement in a day? Or how many shoppers you attracted because of it?

Since traditional marketing is so difficult to measure, you won’t know if your marketing budget is being spent effectively.

On the other hand, digital marketing gives you the ability to measure results with advanced analytics. This includes:

  • The number of people reached (people who saw your content)
  • The demographics and geographical location of the people reached
  • Conversion rates (an actual sale, a completed download, a subscriber, etc.) Average session duration (the time spent looking at your content)Exit rate (where people left after viewing your content)
  • Bounce rate (the percentage of people who left after viewing only one page of your website)
  • E-mail open rate (percentage of shoppers who opened your e-mail)
  • Click-Through-Rate (CTR) (percentage of shoppers who clicked on the link in your advertisement)

As you can see, digital marketing provides very useful, real-time data.

At the touch of a button, you know which methods are working and which are not, giving you the ability to adjust your campaigns to achieve better results.

marketing analytics

Effective Targeting

Traditional marketing methods reach a broad audience. Which means that there is no guarantee your advertisement will be seen by your target shoppers.

There is a chance an ad may reach your target shoppers eventually – but it’s like taking a shot in the dark.

Let’s say you are advertising your furniture store on a billboard. What are the chances that every person passing by it is actually interested in purchasing furniture?

Targeting capabilities are much more effective with digital marketing.

This is because you are able to select who sees your marketing campaign. Digital platforms (Facebook, Google, Instagram etc.) allow you to target shoppers based on their gender, age, geographical location, personal interests, their search results, etc.

This means your advertisements will only be shown to those who are most likely to be interested in your products! This way, you can be certain that your marketing budget is being spent more effectively.

store purchase

Cost-Effectiveness

Larger retailers have no problem spending millions of dollars on traditional marketing and advertising. This makes it extremely difficult for small retailers with limited budgets to compete.

That’s why digital marketing is the perfect alternative; you can create a similar impact at a much lower cost.

marketing graph

The graph above shows the cost per thousand impressions (often referred to as CPM in marketing) for 7 different marketing tactics. 6 of the tactics are traditional marketing methods while 1 is a digital marketing tool.

While the final cost will vary by industry, social media marketing still allows you to reach 1,000 potential customers at a much lower cost than traditional marketing methods.

This means you can spend less money and still reach more shoppers. Or, you can choose to spend the same amount of money and reach even more shoppers!

Compared to traditional marketing, digital marketing methods are generally more cost effective and can offer a higher return on investment.

Target Shoppers at the Right Place and at the Right Time

Think about the last time you needed information – where did you turn?

From planning a vacation, to looking for a nearby pet store, the majority of people turn to their devices when they are in need of information. In fact, 70% of mobile users who bought something in store turned to their devices first.

Why?

To look for information relevant to that purchase.

This is why digital marketing has a huge advantage over traditional marketing. It allows retailers to reach buyers directly – at the right place and at the right time. In other words, you can meet shoppers with relevant and useful information at the exact moment that they are looking for it!

With traditional marketing, you are reaching buyers indirectly through interruption. You can only hope that magazine readers stop to read your advertisement or that drivers notice your billboard on the highway.

But because advertisements are everywhere, most people find them annoying and as a result, they are often ignored. This is why traditional marketing is becoming less effective.

mobile marketing

Value vs. Interruption

Traditional marketing methods use interruption to gain the attention of an audience. This is why most people hate receiving sales flyers or inconvenient phone calls. It doesn’t feel authentic.

People just don’t trust sales-focused advertisements. They see hundreds of them a day and have gotten used to ignoring them.

Nowadays, shoppers are looking for valuable and useful information that will help them make purchasing decisions. This includes product reviews, blogs, and informative videos.

With digital marketing you don’t have to grab the attention of shoppers – because you already have it!

store owner

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Tips for Retail Stores: Increase Back-to-School Sales

Tips for Retail Stores: Increase Back-to-School Sales

Back-to-school is one of the top spending events in retail. According to the National Retail Federation, shoppers spend more on back-to- school shopping than Valentine’s Day, Mother’s Day, and Father’s Day combined. Retailers who don’t sell back-to-school supplies or clothing can still benefit from one of the biggest spending seasons of the year. Keep reading to find out how you can take advantage of the back-to-school season and increase your retail sales.

Smart Retailers Leverage Back-to-School

Back-to-school season can be stressful for some seasonal businesses. It may sometimes mean lower sales and a decrease in foot traffic.
Back-to-school is a time of change for many people – teachers, parents, and most importantly students. Many see it as a fresh start and a time for new perspectives. Smart retailers will play on these feelings with creative marketing tactics.

3 Back-to-School Promotions to Help you Sell More

Even if your store has no connection to back-to-school or college, you can still engage with your shoppers in a memorable way. Here’s how: cater your promotions to shoppers by using change as a marketing tool. Listed below are 3 promotion strategies that can help you sell more.

1) A free gift with every purchase made

This type of promotion offers every shopper who spends a certain amount in-store ($50 or above, $60 or above etc.) a free item. One example of a gift with purchase could be a back-to-school basket with different school supplies. You can also print your brand name on each of the items in the basket. It doesn’t necessarily have to be school related either – popular store merchandise or a gift card are also effective gifts. The benefits of this promotion strategy include:
  • attracting shoppers’ attention
  • increasing the likelihood of impulse buys
  • making it easier to up-sell and cross-sell
  • improving shopper experience
  • enhancing attraction and remembrance of your brand
back-to-school basket

2) Back-to-school discounts

56% of consumers have stated that they have not started their back to school shoppingAnd 49% say it is because they are waiting for the best sales. So consider offering discounts on your merchandise before students go back to school. If you do not sell back-to-school merchandise, don’t fret! Back to school discounts aren’t just for retailers who sell school supplies or electronics. Remember to create a back-to-school tie in! As retail expert Bob Phibbs explains, “When you draw the attention of your customers to their garden, that room, or those drapes, then they will see themselves replacing, learning, or fixing-up, and then they will come into your store to get whatever new things they need.”
back-to-school sale

3) Run a Social Media Contest

Social media contests are a great tool to increase sales and generate a buzz online. As most shoppers (college students and millennials especially) are conducting product research online, it is also a great method to reach target shoppers. This back-to-school season, 49% of K-12 families and 45% of college shoppers are planning to shop online. So get in front of these consumers by running a giveaway or contest with effective prizes. Here are some ideas for effective prizes:
  • A “back-to-school survival kit” for different ages of students.
  • A de-stress prize such as a gift card for a popular restaurant or spa nearby (consider partnering with a local business)
  • Free tickets to fall festivals, concerts, apple picking or other events
social media

Promotion Examples

Here are some examples of creative back-to-school tie ins: A store that sells cleaning supplies could offer discounted packages for college students. It could be marketed it as an all-in-one package for cleaning dorm rooms. A health food store or grocery store could give away healthy meal plans and recipes for college students. Or alternatively – recipes for preparing healthy lunches for children. Families love including their pets in holidays, birthdays, and other milestones. So a pet store could offer back-to-school merchandise for pets! Pet-smart is a great example of a store that has leveraged back-to-school. In the past, the retailer has taken advantage of the back-to-school season with their school-themed pet gear.
promotion

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Retail Crisis Management: How to Prepare for Emergency Situations and Business Interruption

Retail Crisis Management: How to Prepare for Emergency Situations and Business Interruption

👇👇👇 Scroll to Download our COVID-19 Survival Tips for Retailers!!

There’s no denying that we now live in a physically and digitally connected world. The benefits of being globally interconnected are visible in the growth and stability of the world economy over the past decade since the 2008 global financial crisis. But history and economies are cyclical. We were already looking at a potential downturn before the recent coronavirus global pandemic started but retailers are now looking at the most unpredictable global business environment in decades. This is where retail crisis management helps to give businesses options to manage the unknown.

For businesses that were launched in good times, owners will now need to quickly adapt to the challenges of managing uncertainty and risk. Like any other business, owning a retail store comes with its fair share of risks. Even at the best of times, store owners must deal with operational risks that impact cash flow. After all, the US economy was strong for the majority of 2019, yet U.S. retailers still lost 50.6 billion due to inventory shrinkage alone.

With the help of new technology, there are ever more ways to tackle theft and organized retail crime, but they are not the only challenges facing retailers today. Whether it’s a natural disaster in the form of a fire or flood, supply chain disruptions, or an employee ranting about the company on social media, unexpected retail risks can have a huge impact on your bottom line. 

Fortunately, there are some things you can do to help minimize the risk of unexpected emergencies, plan for interruptions to your retail business, and do your best to protect your employees, assets, and reputation.

I’m not by any means a risk management expert. I am, however, a repeat small business owner. So I know what it’s like to face the terror of a sudden downturn AND not be prepared to deal with negative cash flow. If any of the tips below help others minimize their stress or better prepare for the next crisis, that’s good enough.

External Threats

retail external threats

Environmental disasters are external crises that are generally out of the control of any one private business. These include forest fires, hurricanes and, of course, global health pandemics. Because these are environmental and often cannot be predicted, these are often the most costly. They usually impact the economies of entire countries, can cost billions of dollars in damage to affected businesses and homes, and require a long recovery time. Besides the $1 billion in lost sales experienced by retailers during hurricanes Katrina and Harvey, these disasters resulted in $125 billion in property damage.

Business Insurance for Major Disasters

Nobody really likes to purchase business insurance but it’s often critical to the survival of a company in the face of a business-interrupting disaster. Even if you don’t live in an area that is prone to serious storms or other seasonal events, you need to make sure you have enough insurance to cover fire/water damage for your inventory, assets or property. Not only is this type of coverage mandatory on some leaseholds, it’s the only way to protect yourself against legal claims if there is 3rd party damage during an incident, which is also a key part of retail crisis management.

It’s important to remember that environmental disasters can be considered “acts of God” or “force majeure” and can nullify some insurance depending on your carrier and the type of plan you have. While some companies will step up at times of crises, you shouldn’t count on the possibility of coverage in the middle of a disaster if your plan has such exemptions. This is exactly why you should always read your insurance policy to understand what type of financial coverage you are actually buying. If the language in the fine print is too much, write to your insurance broker to make sure they give you a clear written response on what coverage you get with your insurance premiums

Technology, Flexibility and Adaptability

retail technology and flexibility

Adaptability for a business today is often tied to flexibility and technology. How flexible your processes are will determine how quickly you can adapt to different market environments. For retailers, this means using technology and tools that will allow you to immediately change how you are selling or taking payment with customers. The latest cloud systems not only automatically back-up your data, they work on any device and allow you to sell wherever your customer is. So when your store suddenly loses power, you can switch from your till to your mobile phone to keep selling.

For retailers dealing with the impact of COVID-19, for example, shutting down may not be an immediate option. Small businesses who cannot afford to shutdown or are looking for better ways to manage the impact are encouraged to:Download our free checklist

  1. Add or Expand Digital Sales Channels including e-commerce for shipment or pick-up in store.
  2. Offer Contactless “Leave At My Door” Delivery with prepaid orders online, by phone, fax or email.
  3. Make sure you have a Google My Businessprofile and keep your store hours up-to-date.
  4. Encourage Visible Hygiene Management in store by having all staff use gloves or wear masks. Have hand sanitizers readily available at the checkout area, near doors with handles, etc.
  5. Encourage Social Distance In Store by increasing the space in the checkout area between cashiers and where shoppers are waiting to pay. Stop offering samples unless they are pre-packaged.
  6. Encourage “Contactless” Payments (e.g. tap or Apple Pay) and discourage the use of cash to protect your staff wherever possible. You may want to increase your “contactless” limit with your merchant processor but remember that you are liable for any potential chargebacks on “contactless” payments.
  7. Minimize Any Processes that Require Touch such as loyalty programs that require a tablet. Print out a QR code or signage for your web site and encourage users to sign up on their own phones.
  8. Sell In Store Gift Cards with an Incentive (e.g. extra $15 for every $100 gift card) to encourage shoppers to come back to the store when things are back to normal.
  9. Offer Free Pens to shoppers who don’t have their own. It’s a cost-effective gift that discourages the use of public pens and helps customers remember you. Remember to minimize touch when offering them.
  10. Join Local Social Media Support Groups to stay engaged with the community. These are not commercial spaces so don’t sell unless it’s appropriate but find out what your community needs. Here is a great example of a small business that found a way to give back.
  11. Communicate Proper Treatment Procedures when staff are sick. Make sure all managers and staff know what to do when they are sick. There is a lot of information out there – be sure to refer to the most credible medical sources in your country. In Canada, that will mean the public health authorities for your province or territory. In the US, the CDC is a reliable authority for guidance. For further details, you can also review the steps to prepare worksplaces for COVID-19 published by the WHO.
  12. Limit Stock Quantities for any essential household and medical products to avoid stock outs.

Internal Threats

Not all emergencies are external. There are a number of internal risks within a company, many of which aren’t any less significant to the survival of a business than, for example, a natural disaster. You’ll want to work with workplace safety experts if your workplace involves food, hazardous materials or any type of production but for most of us in retail, cash flow, reputation and operations crises are usually top-of-mind for small business owners.

Cash Flow is the Lifeblood of a Business

cash flow

I’m not the first business owner to say that timing is everything when running a business. During good times, this can refer to being in the right place when unusual opportunities present themselves. During bad times, this refers to whether you are financially in a position to survive when there is an interruption to the business. And more often than not, retail crisis management refers to your cash flow position because you need to have access to liquidity or credit to be able to get through an unusually slow period – you can’t sell hard assets quickly or for a good price in the middle of a crisis. So yes, while a natural disaster is completely unexpected and is out of anybody’s control, what you can control is the position you are in when disaster strikes.

I’m certainly not trying to preach about the virtues of keeping unused cash in the bank (assuming there is even any) instead of reinvesting in the business, etc. But if you haven’t already, you may want to get approved for a line of credit only for emergencies when the business is booming or you have the opportunity to. The key is to get credit when you don’t need it and to not use these emergency resources for any daily operations. Yes, hindsight is 50-50, and this won’t help you if you’re already dealing with an emergency but history does repeat itself so can better prepare yourself for the future.

Operations Resilience Planning

Operations covers many different parts of a business. It’s not possible to list every area a business owner or manager can review but, by and large, most retailers should always have some sort of plan in place for:

  1. Succession or delegation if management is incapacitated
  2. Data loss or privacy breaches
  3. Supply chain breakdown

1) Management Incapacitation

Nobody ever wants to think about a scenario in which they aren’t around. But the fact is, if you are a small business owner, you are likely an employer and others depend on you for their livelihood. You can plan for every possible risk but if you cannot issue payroll, approve payments or make important decisions when they need to be made, you’re exposing your business to extra risk. Make sure you have a contingency plan in place for your own responsibilities including who is authorized to access company bank accounts during an emergency. Speak to your accountant or lawyer to learn more about the options.

2) Data Loss or Privacy Breaches

data loss

Just as many people rely on smartphones to remember all of their contacts, the data you use to run and track your business is irreplaceable. In a retail business, this usually refers to your POS data. Not only is the information stored in your POS system critical to your business decisions (e.g. how much product to order based on sales, etc.), it’s also a legal requirement in most countries to both collect sales taxes and report profitability.

Ransomware and database hacks

Not only do natural disasters damage physical structures like storefronts and warehouses, they can also lead to a loss of important company files and data. Environmental disasters aside, as a business, you are also exposed to ransomware or database hacks on a daily basis. Luckily data security is definitely something you can more affordably control now in the age of cloud computing. It doesn’t matter what type of technology you use in your business operations. Don’t take a chance with unexpected damages or hardware failure with your business data. Store it in the cloud, or better yet, use a cloud POS system so that you can run your business from anywhere. After all, even if your data is secure, you need access to your POS system and other retail management tools to be able to continue operating.

Privacy Strategy

With GDPR in Europe and ever more privacy regulations everywhere around the world, it’s important for small businesses to start on the process of developing and implementing a privacy strategy to protect their reputation with customers. There’s no point stressing out over the fact that you may have missed certain regulatory deadlines. Regulators and customers everywhere would rather see that a company has a plan and is working on improving rather than giving up or saying “it doesn’t apply to me.” For some basic steps you can take to get started on how to better manage privacy in your small business, you can refer to this blog post.

3) Supply Chain Breakdown

Global Container Yards

If just one link in a retailer’s supply chain is broken, it can have a significant impact on business operations and profit. Which is why retailers need to be able to react quickly to unexpected supply chain events – whether it is a natural disaster, supplier failure, political or labour strife. 

While there is no way to prevent these events from taking place, there are measures you can take internally to minimize the impact of such disruptions and be better prepared including:

Retail Crisis Management is Risk Management

Having total supply chain visibility involves looking at possible environmental, social, and political risks. Identify possible “what-if” scenarios – what happens if a supplier is facing a weather disruption and loses power? Do you have an alternative source? What if there are transportation delays? What if political events drive up prices of raw materials? These “what-if” scenarios are numerous and may seem unlikely to occur in the first place. But it’s important to know what that list looks like first so that you can start to develop contingency plans to have more options when an unexpected crisis does take place.

Look at manufacturing and distribution coverage

Supply chain coverage

Depending on the size of your business, broaden your connections by reaching out to suppliers in different networks and regions. Seeking out alternate suppliers in different locations will help you re-route orders if one of your suppliers is negatively impacted by an external event.

Transport flexibility

Unexpected issues and events can arise when inventory is being transported to and from distribution centers. For instance, merchandise can be stolen, delays can occur, and weather disruptions can cause damage to roads and transport routes. To prepare for these risks, it’s important to have transport flexibility. In other words, if one avenue of delivery is disrupted, ensure that you have the capability to switch and depend on another logistics channel. If instead, you opt to go for a third-party logistic provider, it’s a good idea to ensure that they can also provide the same kind of flexibility.

Remember that changes in lead times with suppliers during a major disaster will likely change the speed and cost of transport you will need. Do a cost analysis of what your business can afford to spend to get products to you and make sure you have the credit or cash flow necessary to fund the upgrades. During an emergency, you may need to consider foregoing profits or even taking a loss simply to keep enough revenue flowing through the business to cover fixed overhead costs.

Reputation Management

retail reputation

Brand reputation and reputation management are critical to a retailer’s success. In fact, a report done by Total Retail shows that 90% of shoppers have chosen not to purchase from a company because of its bad reputation. Which is why consumers are increasingly relying on reviews to determine the quality of a business.

But, certain circumstances can arise that can quickly impact the viability and perception of your brand – e.g. a distraught employee publicly telling off a customer, poor management of health risks, etc. – creating distrust amongst consumers, and so on.

Help your retail business build a reputable brand and better prepare for compromising situations:

1) Be transparent about company policies and preventative procedures

In the case of an external crisis, consumers start distrusting businesses. Under these circumstances, it’s best to get ahead of the situation by reassuring employees, suppliers, partners and shoppers that you are taking preventative action or being as proactive as you can. During the recent coronavirus pandemic, StichFix made sure that members were aware of the rigorous cleaning process their clothing goes through between rentals to minimize any fears customers had about the cleanliness of renting clothes.

2) Manage negative reviews promptly

Gathering customer reviews is one of the best ways to make a good impression on a potential shopper. And even if you receive negative feedback, remember that it’s normal (and more realistic) for companies to receive a few bad reviews, just as long as you respond promptly and clearly show to customers that you are taking action. To learn more about customer review management and how to respond to reviews, click here.

3) Clearly communicate staff expectations

Setting clear company expectations with every new employee will pay off in the future when you’re trying to contain a potential public relations emergency. You may not be comfortable with the unconventional employee handbook Telsa gives its employees but the point is that you can’t expect employees to know what you expect without giving them some guidelines. Depending on the size of your business, it shouldn’t be an extensive document but it’s worth those late nights or legal fees to get one prepared since you will be sharing it repeatedly in your company. And, of course, communication doesn’t stop with orientation or handbooks. Part of retail crisis management is clearly communicating with employees and setting a good example during and after any crisis. There’s no better way for senior management to walk the talk.


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