Seasonal buying report by Pure London

THE SEASONAL BUYING REPORT: HOW SEASONAL BUYING AND SELLING CAN BENEFIT YOUR BUSINESS

WELCOME Welcome from Louise Young, Managing Director, Retail, i2i Events Group

CONTENTS Why independent retailing matters

The Inside Retail Survey: full results of the retail survey on how seasonal buying is changing

Is it time to change our buying habits?

Think customer first!

In retailers’ own words

Contacts

Spring Fair and Autumn Fair have been firmly established fixtures within the retail industry for well over 60 years. They have grown up – literally – with the rise of modern retailing and some of the very best retailers in the world. Together, our Fairs and our retail partners have served the needs of consumers throughout the decades since the 1950s. Looking back over those years, the shows and the products displayed match perfectly with changing consumer tastes and growing affluence. Today’s world is characterised though by enormous change and as is so often stated in reports on retailing, much of that change is being driven by consumers. Consumers, indeed all of us, have been affected by economic conditions and then even more profoundly by the digital revolution. In talking to retailers who visit our shows and to the companies exhibiting, the changing consumer is leading to a change in the way buyers have to think about meeting their needs. Traditional buying

seasons and patterns can no longer be set rigidly by the calendar only. It is impossible to know how customers will be feeling and spending in 12 or even 6 months’ time so where is the logic in committing vital budget that far ahead? Luckily, suppliers have responded to this new market and are being more reactive and agile in meeting short term demand. To understand more about how retailers see the best way to serve their customers and to plan for key seasonal promotions and events, i2i Events Group undertook a major research study to ask them for their views. We also asked retailers and retail experts for their views on the changing buying landscape in order to help fellow retailers. We believe this important report can provide direction and even reassurance to retailers that they can reappraise their buying with confidence that today’s trends are in fact part of irreversible change. We also hope that it will help you plan effective visits to shows such as Autumn Fair and Spring Fair.

“ THE CHANGING CONSUMER IS LEADING TO A CHANGE IN THE WAY BUYERS HAVE TO THINK ABOUT MEETING THEIR NEEDS. TRADITIONAL BUYING SEASONS AND PATTERNS CAN NO LONGER BE SET RIGIDLY” 2

THE VIEW FROM THE GIFTWARE ASSOCIATION Michael Papé, Chairman of The GA, on how retail members are seizing the opportunities available to increase their sales. Those on both sides of the counter in the gift and home industry have been heartened by recent reports that the number of UK consumers willing to spend money has reached record levels. There could surely be no greater incentive for GA retail members to visit Autumn Fair where they can source products that could give their businesses a bumper bottom line this Christmas. As they emerge from the economic gloom into the sunshine, retailers will want to seize the opportunity to maximise their sales. That means visiting the show that mirrors and monitors the mood of shoppers who now leave their festive buying until the eleventh hour.

The GA’s own Gift of the Year 2016 competition – the most prestigious in the gift and home industry – will be launched at Autumn Fair and our ‘scouts’ will be seeking out top quality products and suggesting to exhibiting suppliers that they should enter. History shows that the winners – and those whose products are highly commended – go on to increase sales and raise their profile and credibility. And the huge shop window that is Autumn Fair allows them to have their products scrutinised by top retail judges. Whether you’re buying or selling, this is a show you can’t afford to miss.

At Autumn Fair buyers will find an ever-increasing number of suppliers that are introducing more lines for Christmas. And they are keen to assist our independent retailers whose policy of leaving it late and buying little and often has helped them to budget. For them, this is a ‘must visit’ show. This festive buying pattern in the UK appears to be entrenched, so you’ll find representatives from the big stores at Autumn Fair too. It will be interesting to see which one of them blinks first and holds a pre-December 25th sale while smaller retailers try to hold the line on prices. There’s no doubt that the ‘little guys’ who visit the show will be able to seize a crucial competitive advantage from retailers who don’t make it to the NEC. And let’s not forget Halloween. The decorations, costumes and spooky paraphernalia were last year said to have given a £330 million boost to retailers who, with their supplier counterparts at Autumn Fair, now regard this America-inspired occasion as a huge selling opportunity.

Michael Papé Chairman The Giftware Association

“THERE’S NO DOUBT THAT THE ‘LITTLE GUYS’ WHO VISIT THE SHOW WILL BE ABLE TO SEIZE A CRUCIAL COMPETITIVE ADVANTAGE” 3

SEASONAL BUYING REPORT SURVEY To understand more about how retailers are responding to the changes in consumer spending patterns and the effect on seasonal buying, we surveyed retailers representing independents, multiples and pure play. This is what the industry told us.

“ TRADITIONAL BUYING SEASONS MAKE LESS COMMERCIAL SENSE WHEN THE REAL REQUIREMENT IS FOR RETAILERS TO BE ABLE TO RESPOND FASTER AND CLOSER TO THE SEASON”

THE RETAIL REVOLUTION Retailing has always been about change and attracting customers with new products and looks. But today’s retail world is changing in a way we have never seen before. We are witnessing a retail revolution, nothing more, nothing less. Customers are behaving differently and believe they are empowered to shop wherever and whenever they want. They are no longer being dictated to by retailers curating collections put together by their buyers. Driving this change is the digital revolution and mobile in particular which is giving consumers the power to control their shopping habits and destinations. Consumers have also been changed by the experience of the new economic realities of life where money remains tightly held and only spent when a need or a want arises. The latest retail sales figures bear this out with spending falling behind rising income levels. Inside Retail’s survey of retailers in the home and gift sectors – from independents through to multiples, department stores and pure play retailers – set out to discover what this new reality means. What the results show is that the majority of retailers confirm that it is now harder to predict their customers’ behaviour and spending patterns. The results also underline that as a result the traditional buying seasons make less commercial sense when the real requirement is for retailers to be able to respond faster and closer to the season. Christmas remains the dominant season of course, but even this most important and predictable season is being changed with the rise of pre-Christmas sales and discounting and then, in 2014, the arrival with a big bang of “Black Friday” which succeeded in catching consumers’ imagination and wallets but at enormous cost to retail margins and demand patterns. As the survey results reiterate, retail buyers are more and more inclined to buy stock frequently and reactively throughout the year.

WHICH IS THE MOST IMPORTANT SALES PERIOD FOR YOUR BUSINESS? Retailers highlight a strong spread of promotional opportunities across the year outside of the big Christmas season. Easter, Valentine’s Day, Halloween and the school holidays are all cited strongly Christmas

65% 14%

School summer holidays

17% 11%

Easter

3% 14%

Mothers’ Day

1% 19%

Fathers’ Day

0% 6%

Back to School

Halloween

No other periods are important to my business

Valentine’s Day

7% 0% 10%

Guy Fawkes Night / Bonfire Night

0% 1%

Black Friday

Other

13%

10%

Most important Also important

“INSIDE RETAIL’S SURVEY OF RETAILERS IN THE HOME AND GIFT SECTORS – FROM INDEPENDENTS THROUGH TO MULTIPLES, DEPARTMENT STORES AND PURE PLAY RETAILERS – SET OUT TO DISCOVER WHAT THIS NEW REALITY MEANS” 5

THE RETAIL SEASONS APPROXIMATELY WHAT PROPORTION OF YOUR SALES ARE GENERATED IN THE RUN UP TO CHRISTMAS? Christmas remains pivotal to all retailers with the majority of respondents saying it is worth up to 40% of annual turnover. Developing an effective buying and margin strategy is therefore critcal 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of sales

3% 9% 16% 27% 20% 9% 8% 5%

85%

1% 1%

THE PERCENTAGE OF RESPONDENTS SAYING CHRISTMAS IS THE MOST IMPORTANT TRADING PERIOD

1% % of responses

WHICH OF THE FOLLOWING PRODUCT CATEGORIES DO YOU STOCK? General gifts

67%

Greetings and stationery

45%

Christmas gifts, floral and seasonal decoration

44%

Contemporary gifts

41%

Fashion accessories / fashion jewellery

38%

Children’s gift, toys and gadgets

37%

Home interiors and furniture

32%

Body, bath and home fragrances

29%

Kitchen, dining and homewares

28%

Art and framing

19%

Outdoor living and leisure

18%

Lighting

17%

Other

15%

Hobby, art and craft

12%

% of sales

% of responses

“THERE IS ALMOST NO POINT IN TRYING TO PREDICT ANYTHING, AS IT IS NEXT TO IMPOSSIBLE TO WORK OUT MUCH OF A PATTERN” RETAIL RESPONDENT

THE CHANGING CONSUMER What emerges strongly from the Inside Retail research amongst retailers in the home and gift sectors is that most respondents recognised that their customers are behaving differently. A staggering 49% said that is now difficult or very difficult to predict how their customers will spend over the next 12 months. Only 11% said that it was easy or very easy. The reasons for this are many-fold but behind customers’ motivation to shop with retailers, respondents place range of product as the single biggest factor at 25%. Following this is “price” then value for money. This underlines today’s savvy shopper who is looking for something new and different for special occasions whether it be Christmas, birthdays or special events such as Valentines but at the right price and value. It is also important for retailers to capitalise on popular, one-off events. The Centre for Retail Research showed for example that the birth of the new Royal baby, Princess Charlotte, generated more than £80 million in retail sales with £27 million of that total being driven by souvenirs. It demanded a very fast response from suppliers and then retailers to meet this opportunity and special occasion which consumers wanted to commemorate. Retailers know increasingly that they have to work harder to win customers’ business and it cannot always be about the lowest price. This is why special events and promotions have growing importance as shown by the results in this survey. Christmas dominates of course at 65% saying it is the most important trading period, but school holidays, Easter, Valentines, Guy Fawkes and Halloween now figuring strongly. For online-only retailers, a large group within the survey, Christmas is shown to be even more important for them.

HOW EASY IS IT TO PREDICT HOW OFTEN YOUR CUSTOMERS WILL SPEND WITH YOU OVER THE NEXT 12 MONTHS? The majority of retailers confirm that it is now harder to predict their customers’ spending patterns over the next year. Understanding real-time customer sales data and sourcing information from your suppliers on new trends is now essential Very easy Easy Neither easy nor difficult Difficult Very difficult

4% 7%

% of sales

Customers are always looking for new products

31%

It is the best way to manage budgets

18%

There is better availability of stock for short term or immediate delivery

16%

It is now too difficult to forecast trends more than six months from a season

15%

Suppliers are more accommodating

I can now buy from suppliers close to home

The competition works closer to the market

Other

40% 34% 15%

WHAT PERCENTAGE OF YOUR ANNUAL BUDGET DO YOU NOW ALLOCATE CLOSER TO THE SEASON? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

WHAT ARE THE MAIN REASONS FOR YOU CHANGING YOUR BUYING PATTERNS?

WHAT HAS DRIVEN THIS CHANGE? Retailers are shifting their buying patterns in direct response to their customers but more importantly because they recognise that suppliers now offer greater flexibility and confidence. It is also now imperative for the business to manage cash flow and budgets far tighter than ever before Changing customer buying patterns Managing cash flow Better availability of supply

36% 9%

21% 15% 13% 15% 6% 4% 2%

RETAIL RESPONDENT

55%

15%

“BECAUSE THERE IS NO PATTERN TO THE CUSTOMER SPEND I CAN ADJUST MY BUYING ACCORDINGLY”

HAVE SUPPLIERS MADE IT EASIER OVER THE PAST 3-5 YEARS TO STAGGER YOUR BUYING ACROSS THE YEAR?

Yes 70%

No 30%

“ CUSTOMER BUYING PATTERNS ARE CHANGING RADICALLY, THE GOOD NEWS IS THAT SUPPLIERS ARE ACCOMMODATING FOR THIS CHANGE.”

0% % of responses

£80 MILLION

THE VALUE OF RETAIL SALES GENERATED BY THE BIRTH OF THE NEW ROYAL BABY, PRINCESS CHARLOTTE

1 IN 2 RETAILERS

NOW SPEND OVER 50% OF THEIR ANNUAL BUDGET CLOSER TO THE SEASON 8

MEETING CHANGING DEMAND

BLACK FRIDAY

So how are retailers responding to these changing consumer spending patterns? The difficulty in predicting how consumers are going to react makes for difficult buying decisions and planning. 31% of respondents say that with customers now always looking for new products they are having to change their buying pattern and bring it closer to season. When this is translated into actual retail buying, the survey underlines the extent to which retailers are becoming more flexible. It shows for example that 15% of those responding will now leave up to 60% of their budgets to buy closer to the season. 21% – the biggest percentage of respondents – say that they will allocate 30% of their budgets closer to season.

One of the biggest retail stories of 2014 was the arrival in the UK of the US import, Black Friday and also Cyber Monday. Black Friday has formed an important but increasingly significant part of the American retail calendar. It marks the day after Thanksgiving and the official start of the Holiday season when many retailers traditionally moved from trading in “the red” to finally delivering profit and therefore moving into “the black”. To kick-start this season, US retailers have been turning to deeper special discounts and offers and also earlier store opening times. The result has been that in 2014, US Black Friday delivered an incredible $2.4 billion in sales on just the one day – a figure that was up 24% on the year before.

“A STAGGERING

70%

OF RESPONDENTS SAID THAT SUPPLIERS HAVE MADE IT EASIER TO STAGGER BUYING PATTERNS ACROSS THE YEAR” “ COMPARED WITH 3 YEARS AGO, 27% OF RETAILERS SAID THAT THEY HAD REDUCED THEIR FORWARD ORDERING”

Compared with 3 years ago, 27% of retailers said that they had reduced their forward ordering. The reasons, apart from having to find new products to appeal to customers, reinforce the changing consumer picture by citing the fact that it is now important to manage budgets, the fact that there is better availability of stock closer to season and to be able to forecast better. The improved availability of stock would seem to be a crucial factor in helping retailers manage their buying closer to season. A staggering 70% of respondents said that suppliers have made it easier to stagger buying patterns across the year.

“THE RECESSION HAS HAD A MASSIVE IMPACT ON SALES, AND WHILST WE STILL GET CUSTOMERS, THEIR PURCHASES ARE MUCH SMALLER AND THEY DON’T GENERALLY BUY ON A WHIM”

And 2014 was the year that UK retailers succeeded in importing Black Friday into the season calendar. Using both on and offline to promote special discounts there were often scenes of chaos in stores or problems online as retailers’ sites simply couldn’t cope with demand. High on the list of special offers were electronic goods, but retailers across all sectors jumped on the promotional bandwagon. The result was that £810 million was spent in a single day last year. But the fall-out from this was that it disrupted the build-up to Christmas trade for many retailers and they have learnt the lessons on how to manage the discounts and their margins. It has reinforced for retailers and their suppliers that they need to work closer together to build ranges and offers for Black Friday 2015. 56% of respondents to the Inside Retail survey say they will definitely be participating again, hardly surprising when 62% of those who participated in 2014 said it was successful or very successful.

DID YOU PARTICIPATE IN THE BLACK FRIDAY PROMOTIONS? Yes No

9% 91%

IF YES: WAS THIS THE FIRST YEAR IN WHICH YOU OFFERED BLACK FRIDAY PROMOTIONS? Yes No

81% 19%

IF YES: WOULD YOU SAY THEY WERE SUCCESSFUL? Yes, very successful

Yes, successful to some extent

56%

No, they had no positive impact on the business

38%

WILL YOU BE PARTICIPATING AGAIN THIS YEAR? Definitely will Probably will Undecided Probably won’t

31% 25% 38% 6%

21% – THE BIGGEST PERCENTAGE OF RESPONDENTS – SAY THAT THEY WILL ALLOCATE 30% OF THEIR BUDGETS CLOSER TO SEASON” 10

£810 MILLION THE VALUE OF BLACK FRIDAY 2014 BLACK FRIDAY KEY LESSONS: •Black Friday looks set to build in 2015 and beyond •9% of our respondents participated in 2014 when few did in 2013. Will you be left out in 2015? •The biggest issue in 2014 was that it brought forward Christmas purchases on big items •Ensure that your Black Friday product promotions are truly special and unique for that day •Work closely with your suppliers to find new and unique products for sale on Black Friday •Manage the discounts to ensure you spread margins throughout the season

IS IT TIME TO CHANGE OUR BUYING HABITS? One of the biggest drivers of change is the online channel. It is re-shaping consumer demand and spending patterns across all channels including bricks and mortar. Martin Newman, leading ecommerce expert, explains more.

Martin Newman is the founder and CEO of retail consultancy, Practicology and is a Non-Executive Director of White Stuff and Conviviality plc.

“ RETAILERS NEED TO GIVE THEIR CUSTOMERS ACCESS TO SHOP NOT WHEN THEY DECIDE, BUT ALLOW THEM TO BUY THEIR NEW BIKINI, SARONG OR SANDALS WHEN THEY FEEL INSPIRED TO”

The retail industry has experienced many pivotal changes in the last 20 years with the introduction of web stores available 24/7 to consumers all around the world, extension of store opening hours, multichannel retail, loyalty and rewards schemes all in aid of the consumer friendly shopping experience. In the meantime, the industry has done little to change the way it plans and buys its product ranges. The buying cycle starts around 18 months before the season and there is little that can be done once orders are placed, quantity committed and phasing of stock agreed. For many traditional bricks and mortar retailers who are preparing their business for the day when 50% of their sales will be multichannel and are ensuring that their systems can manage demand, looking at what they actually offer their customers online and in store comes as an afterthought. Internationalisation is on everyone’s strategic road map but detailed consideration of the climate and size variances are not usually as high on the agenda. In addition, new big shopping events such as Black Friday and Cyber Monday are shifting shopping habits and marketing teams are successfully driving visits to both stores and online. Last year Black Friday was the biggest shopping day recorded and consumers spent £810m in just that one day. Nevertheless, traditional merchandising is rarely taking these into consideration when signing off budgets. Analysts from Adobe looked at stock availability data and predicted that ‘out of stock’ situations will peak during these new shopping days (see graph below).

Buying & Merchandising is a tough job at the best of times and adding new shopping channels, customer behavior and variety of climates is only making it more complex. As with most things the devil is in the detail and the detail in our new complex multichannel equation is in gaining insight from our data. Part of the solution to the challenge of making more informed buying and merchandising decisions can be found in traffic and demand data which most retailers’ ecommerce teams have access to. Tying the ‘traditional’ merchandising past performance sales analysis with online lost demand (out of stock situation) as well as on- and off- site search can build a comprehensive picture of what products were searched and bought (or not bought) and when. Good analysis of the shopping intent data can lead to a conclusion that our customers are looking for bikini sets in mid-to late August contrary to our belief that August is the best month to introduce new AW stock. Does that mean that retailers shouldn’t plan to launch their Holiday Shop in March? Probably not. What it means is that retailers need to give their customers access to the Holiday Shop not when they decide that they want to offer it but allow them to buy their new bikini, sarong or sandals when they feel inspired to. In simple terms, maybe it’s time to change our buying & merchandising habits and move away from the traditional AW and SS season buying cycle. Maybe it’s time we look to spread out our stock, take sales & demand data from all our channels into account and ensure we are stocked for new events which drive customers to our stores.

Adobe Digital Index Average product price fluctuations vs out-of-stock product views CYBER MONDAY

85%

350%

80%

225% BLACK FRIDAY THANKSGIVING

75% NOVEMBER 1 *100% = highest price during period

DECEMBER 1 AVERAGE PRICE LEVEL

100% DECEMBER 31

OUT-OSTOCK PRODUCT VIEWS

“ANALYSTS FROM ADOBE LOOKED AT STOCK AVAILABILITY DATA AND PREDICTED THAT ‘OUT OF STOCK’ SITUATIONS WILL PEAK DURING THESE NEW SHOPPING DAYS Chart.indd 1

13/06/2015 22:27

THINK CUSTOMER FIRST!

If changing consumer behaviour is driving the move away from traditional seasons, it is even more important to be able to understand data and trends. Retail marketing expert Stella Hartley sets out the key rules.

Stella Hartley is a multi-channel marketing consultant with extensive retail experience including roles at The White Company, Hamleys and River Island. Stella now specialises in working with small to medium businesses to drive growth through marketing strategy and brand development. email: stella@stellahartley.com Twitter: @stellahartuk

The customer has always been King (or Queen) to retailers, now with the growth of e-commerce and digital media it seems we are sometimes overwhelmed with customer data, not only what customers have bought or spent but what they are thinking and feeling and how they are living their lives. The vital thing for retailers is to focus on what all this data actually means for them and to think about WHY customers behave in the way they do and how retailers can influence this behaviour. It’s about getting to what marketers call ‘insights’, key information about your customers that you can use to shape your offer and gain competitive advantage whatever channels you sell through. There’s no substitute to actually talking to customers, preferably physically when they are shopping, in focus groups or virtually through Social Media, product reviews or SurveyMonkey. Conversations and listening can help you make sense of and provide rationales for the sales data you are analysing. A key trend most retailers have spotted is that customers are more demanding, the internet has sped everything up, customers want more newness, they have a shorter attention span, one seasonal range isn’t going to excite them.

“ CUSTOMERS ARE MORE DEMANDING, THE INTERNET HAS SPED EVERYTHING UP, CUSTOMERS WANT MORE NEWNESS, THEY HAVE A SHORTER ATTENTION SPAN, ONE SEASONAL RANGE ISN’T GOING TO EXCITE THEM” 14

They can price compare instantly online so it’s better to have exclusive product or an added value shopping experience and a strong brand reputation that customers trust. If they buy online they want deliveries faster and to be able to return products quickly and easily (and preferably at no cost!) Customer segmentation can be a really useful tool to help you understand customer types, who is buying what, which segment is commercially more valuable, which segment is growing. Make sure your range reflects the segments but importantly not too many segments or the offer will look too fragmented and your brand will lack focus. Sometimes deciding who your customer isn’t is as important as deciding who it is. Customers are increasingly savvy about promotions and special offers, the recession has taught them to wait for the discounts which now are more frequent and less likely to be twice yearly big sales. Instead, Black Friday has become the most anticipated retail event of the year which has made both customers and retailers rethink the crucial lead up to Christmas. Customers now feel that if they don’t shop that weekend or don’t get some amazing buys they have somehow failed! Even small businesses can create relevant offers that add value rather than succumb to big discounts.

THERE’S NO SUBSTITUTE TO ACTUALLY TALKING TO CUSTOMERS, PREFERABLY PHYSICALLY WHEN THEY ARE SHOPPING HAVE A POINT OF VIEW (AND STICK TO IT!) Having a clear Point of View is crucial to creating a strong brand and building a relationship with customers. Importantly, it also gives you a framework within which to develop your range. Some retailers can rely on suppliers to do all the work and come up with a constant stream of new ideas, but

“MORE FREQUENT DROPS OF NEW STOCK TO SATISFY CUSTOMERS WHO WANT TO SEE SOMETHING DIFFERENT EACH WEEK”

“THE INTERNET HAS MADE EVERYTHING MORE TRANSPARENT AND FASTER, IT GIVES MORE VISIBILITY TO SMALL BRANDS WITH NICHE OFFERS, GIVING CUSTOMERS MORE CHOICE MORE EASILY ACCESSIBLE THAN EVER BEFORE”

it depends on the sector you are in and the quality of your supply base. Advice from seasoned designers and buyers is don’t slavishly follow trends, use the good forecasting tools that are available but look everywhere (markets, vintage, BLOGS, cool brands) for ideas and inspiration. Sometimes originality is in the ability to edit. WGSN, Style.com, Premier Vision, Pitti Filati, Pitti Uomo, Maison et Objets and Heimtextil can all provide good research opportunities but everyone follows everyone else – how to break out and be different is a real skill, particularly when you want to have a POV but not get caught with stock you can’t shift! If you are a major department store business you have the ability to monitor macro economic and lifestyle trends with experts hired to constantly research opportunities, if not you have to be aware of what’s going on around you, know that the popularity of the Great British Bake off and the growing interest in gardening and knitting means that alongside technology there is a consumer trend which is about more authentic, homespun, tactile activities and relaxation, wellbeing and treat times are a welcome relief from an increasingly frenetic, connected world. It’s about being aware of what’s happening outside your business, it’s all too easy to be very inwardly focused particularly when running a small business with little resource.

In a world that’s shrinking with global communications and transport networks it’s not difficult to find lots of potential suppliers to help with product development, but it’s the filtering of those suppliers,whether on ethical grounds, style, fashionability, price, quality, reliability and crucially fit with your brand and POV, that is the challenge. AGILITY IS THE NEW BUZZWORD! The internet has made everything more transparent and faster, it gives more visibility to small brands with niche offers, giving customers more choice more easily accessible than ever before. This means that retailers have to adopt a more flexible and speedy buying model and to be more agile to compete. Most retailers talk about ‘buying closer to the season’ however, it’s also about more frequent drops of new stock throughout the season to satisfy customers who not only shop in stores but also on their sofas, on the train, or at work and want to see something different each week. This requirement to provide constant newness means retailers are also wary of buying too much stock at the start of the season yet have to remain in stock of key lines or risk disappointing customers. For some retailers the seasons themselves have become a major issue; the weather is increasingly unreliable and there can be a tendency to react to the season you have just had which can exacerbate the problem the following year and lead to ‘feast then famine’,hence in fashion there is growth in layering and ‘seasonless dressing’. This sounds obvious but is not without

challenge as without seasonal change a range can look dull unless it has originality and a strong point of view. One solution is to be more reactive, reduce supply time and buy closer to home accepting pressure on margin as the trade off for agility. For retailers able to source in the UK this can be a competitive advantage with provenance and quality cues giving customers a value rather than price message. Agility also calls for closer supplier partnerships with a joint trading mentality and greater vigilance to ensure quality and ethical standards don’t slip in the race to be constantly in stock of key lines. Pressure on margins and seasons means fewer big sale events and more tactical promotions all year long, whether calendar events with special buys or targeted discounts and of course, Black Friday, which needs to be planned for, not just with product buys and promotions but with agile customer service infrastructure to ensure that sudden large sales volumes don’t cause systems to crash!

IN RETAILERS’ OWN WORDS What does the reality of a faster-moving market and changing buying patterns mean and how are retailers responding? How should retailers approach trade shows? We asked a selection of top retailers and brands for their candid views.

‘There are a lot of good forecasting tools available - the trick is not to slavishly follow them, but know how to edit’ ‘There’s so much customer information now, it can be dangerous - you’ve got to know what to do with it’ Carole Robb, Design Consultant, East, Cath Kidston, Boden

‘BEING AT A TRADE SHOW CAN BE A BIT LIKE A DEER CAUGHT IN HEADLIGHTS IT’S VITAL TO PREPARE, SOCIAL NETWORKS AND HIGH END STYLE BLOGS CAN BE A GREAT SOURCE OF NEW PRODUCT IDEAS’ Paul Middlemiss Trading Director - Robert Dyas

Amanda Burrows former Brand Director and Buyer - Whistles, House of Fraser

‘Finding new suppliers is not a big issue, it’s filtering them that’s important, ensuring you get unique and differentiated product’ ‘You have to buy for the channel, if you sell through wholesale and direct you need a dual sourcing strategy to manage big volume orders and in season drops’ ‘THERE AREN’T REALLY SEASONS ANYMORE - JUST A FINANCIAL HALF YEAR’ ‘YOU NEED TO TRADE TOGETHER WEEKLY WITH SUPPLIERS TO BE AGILE...’

John Stockton CEO - Weird Fish

‘YOU’VE GOT TO BE ABLE TO ‘SNIFF OUT’ THE RIGHT SUPPLIERS AT A TRADE FAIR, YOU’VE GOT TO WORK HARD AND WALK ALL THE AISLES, SEE HOW BUSY THEY ARE, HOW THEY APPROACH YOU’ ‘THE INTERNET HAS OPENED UP THE OPPORTUNITY FOR SMALL PLAYERS TO BECOME BIG PLAYERS IN A FEW YEARS’

‘THE CUSTOMER’S ATTENTION SPAN HAS GOT SHORTER, THERE USED TO BE A 13 WEEK PRODUCT CYCLE, NOW SHE’S BORED AFTER 4’ “BLACK FRIDAY CHANGED THE WORLD, IT HAS CHANGED THE SHAPE OF CHRISTMAS AND YOU’VE GOT TO DO IT’

Nicky Elson Former Trading Director The White Company

Leading Department Store buyer

autumnfair.com

springfair.com