Golden Quarter nuggets #5: How to manage your seasonal products in 5 easy steps

Successfully executing a seasonal stock strategy can be a challenge for any retailer (just look at what is marked down on Boxing Day). To help you this Q4, I’m outlining a 5-step process so you can better navigate the tricky world of seasonal products.

Firstly, seasonal stock is any product for which demand fluctuates according to season, holidays or events; in other words, it’s hard to predict demand and match your supply accordingly, which is why it can be a risky investment. So, how can you de-risk this crucial part of your inventory?

1. Assess your current seasonal stock holding by SKU and ensure that you clearly mark it as “seasonal”. This is a crucial starting point to get clarity on the investment you have already made.
2. Analyse your seasonal stock and previous sales. What was the stock bought for (Christmas, Mother’s Day, Easter etc)? . What was the cost price, and how much did you plan to sell it for? Did you meet your planned sales targets? Was the marketing right, and did the timing work? This might take time, but I’d urge you to persevere with these vital questions because you can’t plan for the future without knowing exactly where your business stands now. As I tell my clients, always learn the lessons, and use failures and mistakes to your advantage.
3. Get creative with what you already have. If you have leftover seasonal stock, how long has it been in the business, and can you still see a viable selling opportunity for it? How can you use what you already have? Some options include repackaging as a refresh strategy, using stock as a free gift with purchase, selling as an add-on at the checkout. If you really can’t use the inventory, consider a sample sale, a secret sale for email subscribers or selling it discreetly on eBay. The main thing is, you don’t want dead inventory taking up storage space or costing you even more money than the initial investment. A top tip: clear seasonal stock throughout the year, and don’t let it pile up. There are plenty of options so be smart and choose the best clearance strategy for your business that doesn’t damage your brand.
4. Buy new seasonal stock to fill in the gaps. Look at your current bestsellers and curate a seasonal collection that will resonate with your customers. Buy the initial quantities according to your budget and supplier minimums, but always ask how quickly you can get top-up stock if needed. In an ideal world, you want to do your best to avoid investing in extra seasonal products unless you are sure demand will massively outstrip supply; and remember, selling out is a great marketing tactic that creates urgency and a sense of exclusivity for your customers as well as minimal terminal stock for you.
5. Monitor your sales and ask for feedback from your customers. Once Q4 is over, look back at your KPIs to understand what worked, and what didn’t. What lessons can you learn? It’s these takeaways that will inform your next seasonal strategy so that your brand can go from strength-to-strength at key selling periods of the year.