ASK THE EXPERT | WHICH HOLIDAY PROMOTIONS REALLY WORK?

Q: Last summer wasn’t as promotional as we are used to seeing. Thankfully, we didn’t have to take steep markdowns to clear older goods, but the forecast for later this fall is a little hazy. Which holiday promotions have you seen that really work? We want to keep up the momentum even if the economy goes soft. Thanks.

A: That’s a good question. Whether the business cycle softens or not, we expect the holidays to be as promotional as usual. The good news is that our client stores don’t need to get involved in the crazy giveaways that we see in some sectors of the market.

The promotions we normally see in a men’s operations could be any combination of the following:

1. A clothing promotion before Christmas – This combines customers’ needs for dressy clothing over the holidays with high-margin products that are usually sold in multi-unit transactions. (E.g. Suit, dress shirt, neckwear, shoes, etc.)
2. A “Thank You” promotion – Emphasize how important your customers are to you and strengthen your community ties.
3. An event for spouses—Bring in your customers’ partners and you are nearly doubling your client base. Make it fun and give couples a reason to come out and celebrate together.
4. A “Gift Yourself”event – This is one of my personal favorites. Men notoriously buy less frequently than women, so give them another opportunity to get themselves a present that might be overlooked by their friends and family. A promotional markdown, perhaps 25% off, will help encourage the sale.
5. Winter clearance sales– After all your holiday events, your normal post-Christmas winter sales events will follow.
6. And of course, plenty of holiday cheer! Bring in Santa, food, drink, holiday wrapping contests, and plenty of fun.

Here are two more ideas to keep in mind: First, the more noise you make, the more attention and traffic you will get, and it doesn’t have to be about markdowns.

Second, your ability to generate margin is based on the amount of margin you have built into your inventory. So, have plenty of new, full-priced inventory ready to sell.