Image provided by Great Outdoor Store
By. Jahla Seppanen
Specialty Retailers from GOA speak to shifting gears for the holiday selling season, with emphasis on displays, Small Business Saturday, connecting with the community and sticking to a buying plan.
The holiday season is synonymous with the buying season. An NRF survey done in 2014 found consumers will spend an average of $460 on gifts for their family, up 6.5 percent from $432 last year; and $80 on gifts for friends, up from $75 last year. The influx of customers looking to spend on family, friends, and even pets flock to outdoor retail stores on the hunt for deals. This chunk of the calendar is also ripe with key retail sale dates, such as Black Friday and Small Business Saturday, along with competitive promos, giveaways and markdowns. For outdoor specialty retailers, the season brings both advantages and challenges as local shops square up against big box chains.
SGB spoke with owners and principal buyers at specialty retail shops across the U.S., all members of the exclusive Grassroots Outdoor Alliance (GOA), to learn which holiday sell-through strategies are in place to skyrocket sales and diminish inventory this season.
Casual Adventure, Arlington, VA: Eric Stern, Principal Buyer
Photo courtesy of Casual Adventure
“It’s getting to be the time of year when people are buying for others, and nowadays, people have a lot of lists,” said Eric Stern, principal buyer at Casual Adventure, serving outdoor camping, hiking, travel, tactical and scouting in Arlington, VA. “The challenge is, beyond that list, what else can we provide for the customer themselves or for stocking stuffers to compliment holiday items.”
Stern revealed his strategy of buying within a brand has been a great success among customers, who ordinarily come in looking for one staple apparel piece. “If we buy the Patagonia Better Sweater, we’ll buy vest, quarter-zip, jacket, matching gloves, scarves and hats, too.” Stern also buys within certain colors, to tie each independent piece or accessory to a complete outfit. “It gives us more perspective of how can we enhance what someone already wants,” he added.
Eric Stern, Casual Adventures Principle Buyer
“We display the set on a mannequin, so we might have the hat, scarf and gloves all together so people can see the play of colors. We also compliment the style or fabric of the outfit with gear and accessories from other brands, like a messenger bag.” Stern added, “You have to accessorize,” Stern said. “And buy in different colors. It makes it more interesting to have a red, a green, and a purple to compliment personalities.”
Stern’s belief is that display is key, especially during the holidays, as shoppers are even more visually driven due to the overwhelming presence of product from all sides of the retail chain. His word is tried and tested. Casual Adventure was founded in 1945 and has stayed in the family since then. Eric is a fourth generation great grandson of the original founder.
The tradition of keeping operations in the family speaks to an advantage all specialty retailers should make use of during the holiday season – you are members of your community. “We’ve been here for 60 years. We really try to embed ourselves into the community. These are not just customers, but friends, long-time clients and ambassadors of our stores,” Stern said. “It’s about hammering home the idea that we are your neighbors. Even more than the knowledge of product, it’s the interest in what the customers are doing. Establishing rapport.”
Stern added, “As a small business we tend to get lost on Amazon Monday and Black Friday, so we key into Small Business Saturday.”
Core brands that stand out for holiday resurgences in style, aesthetic and technology include Mountain Hardwear and Arc’Teryx. Stern’s footwear prospective puts Ugg and Sorel at the forefront, with more women’s casual footwear like Olukai projected to sell.
Great Outdoor Store, Sioux Falls, SD: DeAnn Echols, Owner
DeAnn Echols (right), Owner of Great Outdoor Store
DeAnn Echols, owner of Great Outdoor Store has an arsenal of sell-through techniques set specifically for the coming holidays. Great Outdoor’s seasonal calendar begins with the release of a 22-page holiday catalogue of products, gift ideas, and coupons, released the second week in October. “That gets a phenomenal response,” said Echols. “We mail close to 3,500 and an keep an additional 3,000 in store, making our ratio return for coupons really nice…customers are looking forward to that.”
Following the catalogue, the shop hosts a big kickoff anniversary sale the first week of November, which Echols accounts as one of the shop’s biggest sales year round. “We highlight specific vendors, do giveaways, register for prizes, and have some minor discounts for the sale,” she said. This year will be the 32nd anniversary of the South Dakota-based specialty retailer. Their celebratory sale ordinarily runs Wednesday through Sunday.
But what’s even bigger this year is the prospect of starting a loyalty program. Echols said, “It’s been something we have been talking about, and hope to implement in October, when catalogue coupon-ers come in. Then we can get those customers signed up for the loyalty program.
Programs like this reinforce that customers will return to your shop, and that your shop recognizes their dollars mean something more. “This is typically the season where people are spending more, and those dollars will seem to have more value with a loyalty program.”
Echols also spoke excitedly about innovative shopping experiences that can uniquely promote sell-through, including a Ladies or Men’s Night, where Great Outdoor creates a casual atmosphere and really helps people shop for the right gifts. She projects this to occur during November, saying, “Our holiday shoppers start early, before Thanksgiving.”
Photo courtesy of Great Outdoor Store
“And being locally owned,” Echols continued, “we always do Small Business Saturday. It started with American Express, but has taken a life of its own.”
The last key to Echols’ holiday strategy is to “go all out merchandizing.” Many specialty retailers are unique from Big Box stores in that their locations are special. “We are in an old train depot. I make it really fun inside, with a big display, and light the outside as well.” Her advice: give the store a fresh look, even as early as September. “We literally change and move everything. I really try to make it a fun, festive atmosphere.”
Manzanita Outfitters, Prescott, AZ: Jenny Moore, Apparel and Softgoods Buyers, and David Wheeler, Founder and Owner
Photo courtesy of Manzanita Outfitters
For Arizona’s Manzanita Outfitters, the bulk of holiday sell-through technqiues comes in the form of packaged deals and brand giveaways. Jenny Moore, apparel and softgoods buyer said, “One thing we do that is always huge is buy three get one free for socks.” Brands taking part in this promotion include Darn Tuff, SmartWool, Fox River, and Inkenji. “We give away close to 100 pairs of socks from each company, so if you think about it, we’re selling three times that.”
Jenny Moore, Apparel and Softgoods Buyer
As for packaged deals, Manzanita created pre-packged daypacks from various brands (i.e. a small Camelbak daypack will be accessorized with a first air kid, two granola bars, electrolyte gels and a water bottle.) These cannot be amended or swapped out with other products, and are advertised as pre-made gifts.
The shop also does packages in hardgoods. For instance, offering a choice of PFD or paddle when purchasing a kayak, canoe, or SUP.
“We’re making decision for our customers,” said Moore, “and they appreciate us for that. We make it easy for a spouse coming in to buy for someone else because it’s already decided. Then they see the dollar amount of buying everything together and see it’s a deal with the package.” Moore added, “It’s silly, but a lot of people don’t think about all the pieces that need to go with a pack or boat.”
Manzanita prefers to have brands agree to partner on these packages, but will create groupings despite pre-arranged partnerships. “In the end, we’re still making the same amount of money, marking off a $4 granola bar loss compared to profiting $100.” This being the first year Manzanita is participating as a member of GOA, Moore looks forward to, “seeing a lot more brands that are willing to do promotions with us.”
David Wheeler, Founder and Owner of Manzanita Outfitters
David Wheeler, founder and owner of Manzanita Outfitters emphasized the importance of planning sales throughout the season. “Don’t do everything in the beginning,” he said. “Rather than throw everything out there at once, we’ll gradually introduce items, which gives us wiggle room to find where the ‘sweet spot’ is. Then if I see something is or is not working, I’ve got the inventory to adjust.”
It is equally as important, according to Wheeler, to show restraint and discipline much earlier, while buying. “Don’t get yourself into a position where you need to do something drastic to get out,” he said. “If you’re trying to make corrections in late November and December, it’s really too late. You need to understand your inventory. Take past history and forecast forward. Feel what direction you think your particular market is going and hold the line and buy accordingly.” Wheeler advised, “if you get a 2 percent discount to add $1,000 to your order, don’t take it.”
Like other GOA retailers, Wheeler speaks to the need to highlight the local. “Everyone is thinking of friends and family, especially for the holidays. Don’t let them forget that we see them as friends.”
Backcountry North, Traverse City, MI: Tracy Mayer, Owner, Softgoods and Footwear Buyer
Year-ago buying is a huge factor in specialty retail sell-through for the holidays. Owner and Softgoods/Footwear Buyer Tracy Mayer of Backcountry North speaks to the planning that goes into holiday promotions for her shop. “The big sale holiday is Black Friday, and we don’t participate much because that is the time big box stores have their biggest sales.” Mayer continued, “Deals, specials and promotions are not how we operate. We’re brick-and-mortar, which is all about unique products and servicing our customers.” She added, “I don’t need to spend hours chasing discounts. I can let all the biggies battle it out for that jacket, but you’re going to lose that battle. That is a waste of our time.”
Tracy Mayer, Owner and Softgoods/Footwear Buyer
The trap for many specialty retailers can be disguised in promotions, while the extra purchase can hinder optimal sell-through. Mayer said, “Whether it’s Columbia or The North Face, there will be certain promotional items. But it depends on how it sits with our current line. We do not go ahead and blindly participate in the deal…you should have other ways of making margins.”
The best part about being a specialty retailer is the ability to diverge from the plan and think on your feet. “You can be reactionary,” Mayer said. “Since you’re small you can make a determination depending on weather, other competitors, or inventory. But know you have to be ready to make that determination. You have to pull the trigger.” Mayer’s approach: make a list of actions that prepare your shop for a number of seasonal divergences. Then act.
Backcountry will also participate in Small Business Saturday. “We are an early participator. We have an iPad ready to register an AMEX early, and we see repeat customers who purposely come in Saturday morning to shop with us because of it.”
However, the deals won’t mean anything if the product isn’t fresh. “Our goal is for our customers to say ‘I always see something new’,” said Mayer. For the holidays, this means lots of accessories and outdoor apparel and gear that grosses into general Men’s or Women’s gifts.
The Take Away
The take away for specialty retailers hoping to boost sales from year-ago earnings? As Mayer said: “We don’t have to follow any rules.”
Specialty retailers thrive by being responsive to customer, weather and trend shifts. They are friends of the community, relating to buyers as long-time neighbors. They imagine new events and gift packages that make it simple to find the right gift. And most of all, they celebrate their smallness in big ways.
