Holiday Trading Trends – December 2014
Congratulations as another Holiday period comes to a successful close.
Overall, December finished 8% up on the same period last year and 10.5% ahead of 2012!
The big difference was the Average Retail Sale value which finished nearly 7% up on last year at $223 compared to $208 in 2013. It doesn’t sound like a lot, but your Average Retail Sale is one of the easiest Key Performance Indicators (KPIs) to improve because you have almost full control over the retail value of the items you buy and the ability of your top salespeople to sell them.
The number of Units sold was also marginally up by 2% over 2013. The key is to understand ‘why’. Was it due to increased store traffic … and if so, what did you do differently to achieve that. Or was it due to an improvement in your ‘Closing’ ratio or ‘Add On’ sales?
At the Edge Retail Academy, we follow a process called RQSA … R is for Results. What worked and what didn’t? Q is for Questions. Why did it work … or not? What are the lessons to be learned, both good and bad? S is for Solutions. We’re not looking for excuses, we’re looking for answers and solutions. What do we need to do differently, or, what do we need to do the same? A is for Action. Now that we know what to do, who is going to do it and when will they have it completed? And remember, every action produces a result. Is it always the result you want? No of course not, but it does produce a learning opportunity regardless of the result.
So become inquisitive and ask lots of quality questions. Don’t look for people to blame but rather encourage an open, honest and safe exchange of ideas and solutions. The good news is that as a manager or owner, you don’t have to have all of the answers … you just need to have the right questions.
Finally, start a Journal of what happened during the Holidays this year. Include the impact of your own advertising; the impact on your business of your competitors advertising; the results of your top salesperson (if one person can do it, it can be done by all); the performance of your top vendors … and so on.