4 minute read
Bryony Taylor-Edwards, head of brand and gift
Let’s talk about…
how to retail in a recession
Bryony Taylor-Edwards, head of brand and gift, home, food and toy buyer at Yarnton Home and Garden in Oxfordshire, shares tips on trading in turbulent times
When recession - or the verge of one - hits, and customer spending habits change, buyers are reminded that they are not working in isolation but are only one - albeit very important - link in a chain that needs all its parts to survive.
For retail, the chain is made up of procurement, warehouse, visual merchandising, and the sales/customer service team. This is all encased in brand, marketing, and strategy, and supported by the finance department.
If you want to survive, you need to look holistically at all pieces, playing to your strengths along the way. Here are my top five tips to retailing in a recession. I would love for you to join the discussion on my LinkedIn profile.
1. Know your WHY
Your brand is only as good as your customer’s perception of it. Have you stopped to sit down, cup of coffee in hand, to assess your ‘why’? It’s tempting to fall into the trap of copying what your competitors are doing, or frantically cutting costs with little consideration of the long-term effect.
I would urge you to stop for a moment, pencil and paper in hand, and write down a reminder of why. Why do you do what you do? Why do your customers love you? This is what sets you apart from your competitors and allows you to find your unique strategy to survive these turbulent times.
Once you have this golden nugget of information, you can focus your efforts on fortifying your why in your customers’ minds. If you are unsure, speak to them. Ask them why they are loyal to you, and what makes you special in their eyes? You may be surprised by what comes up to help you on your journey.
2. Understand the power of a multisensory retail experience
I’ve always believed visual merchandising should be a serious part of your retail strategy. But now is the time to invest if you have not already, or to take your visual merchandising manager a cup of tea and express your gratitude.
A recession is where the visual merchandising team comes into its own. If the outside world is gloomy, bringing joy to customers via their enjoyment of your space and products is absolutely essential. Providing this escape can pay dividends in the long run.
Stressed customers do not spend. Customers immersed in a relaxing, multi-sensory environment do. Visual merchandising to reflect customers’ moods is essential. Right now, many are looking for ‘in-home’ experiences, be that a special meal for two, or an investment in home-based activities such as puzzles and games.
Christmas will be all about creating joy and an element of luxury at home, and cutting back on larger gift-giving and non-essential meals out. Visuals can bring this to life and assist in upsell.
3. Focus on customer service
If you are a bricks-and-mortar retailer, how do you compete with online? Customer service, of course. People don’t enter shops just to buy stuff. There are myriad complex reasons why they visit: for an uplifting experience, to feel connected to others, to relieve boredom, to feel aspirational… the list goes on. Our job as retailers is to deliver the connection - real human connection - in a way that cares.
Have you recently walked your floor as a customer? Gosh, it’s hard to be objective when you’re in the mire. But right now, you have no choice. Every touch point in your customer’s journey matters. How they are greeted on arrival, how products are displayed, the smell of your store, and even the music have an impact - not least the exit.
4. Strengthen and build loyalty
Yes, it is purported that in a recession brand loyalty is increasingly fragile, and while there may be some truth in this, we also know that during uncertain times humans crave familiarity.
If your brand is recognised and loved, now is the time to turn on the charm and create comfort and understanding. We must reward our loyal following to help them understand that we have not only noticed their loyalty, but we are grateful for it.
How you go about this will be unique within your setting. But you need to show an understanding that you recognise the challenges that your customers are facing, and you will do all you can to ease the pain, be that a great promotion for loyal customers, free and valuable advice via blogs, or even cheering your customers up across your social media channels.
5. Cut costs but don’t throw the baby out with the bathwater
Before you start any cost-cutting exercise, my advice would be to put your costs into two columns: good costs, and bad costs. Don’t cut good costs - good costs being those that make you unique and give you a point of difference against your competitors. Distinctive service could be an example, or selling quality goods.
Finally, don’t panic. Follow the above and the ship will right itself, this wind shall pass, and you need to consider what you want to see when it does. Long-term thinking is a must to cope with short-term headwinds.
Email: Bryony@yarntonhomegarden.co.uk Visit: www.yarntonhomegarden.co.uk; www.instagram.com/yarntonhomegarden; www.linkedin.com/in/bryonytayloredwards
