Retailers learn from past holiday marketing mistakes

Traditionally, as much as 50 percent of annual profits and sales for retailers can come during the holidays, so getting consumers into the shopping spirit is vital -- and avoiding marketing mistakes is key to ensuring that there are a minimum of seasonal nightmares.

But even veteran retailers sometimes drop the holiday ball.

"The biggest marketing mistake I have made during the holidays at The Promenade Shops at Briargate is to assume after being open four years that everyone knows about the shopping center," said general manager Jennifer Halloway. "It is still important to advertise, reach new audiences and offer unique events and promotions to drive traffic."

One of the best ways to do that is through the Internet. According to The Direct Marketing Association's "Integration of DM & Brand" 2007 study, consumers spend more time sending and reading e- mail and visiting Web sites than they do watching television. The study identified e-mail and Web sites as having a higher positive effect on brand than TV (44 percent vs. 17 percent).

"We do print, radio, TV, and online," said Diane Loschen, marketing manager at The Citadel mall. "In transition of ownership we are working on updating our e-mail database, so we aren't sending out e-mail blasts this season, but plan to going forward."

Loschen said she's shifted her focus from one-shot promotions to advertising for and supporting retailers.

"I've learned that really the season is about shopping," she said. "Especially as you get later into the season, people are just into shopping and not into attending events."

Jill Lais, marketing director at Chapel Hills Mall, also has worked through the learning curve during the two years she has been at the mall.

"Last year we tried putting Santa not at center court and in hindsight I would probably not do that again," she said. "You don't always want to do the same thing, but sometimes you realize that doing the same thing isn't bad."

This year, Lais said, Chapel Hills is focusing on e-mail marketing and target messaging through signage at the mall -- signs, information at customer service desks and making sure retailers know about events.

But along with marketing, customer service also is vital -- and a part of customer service is making sure that shoppers are having a good shopping experience and aren't getting frustrated.

That means keeping the in-mall directory up to date, Loschen said, and making sure that holiday decorations help shoppers to get into the spirit of the season.

"Sometimes a shopper will only visit your center during this one time of year, so there is not room to make a mistake," Halloway said.

Different downtown

But for retailers in downtown, marketing plays much less of a role during the holidays.

"We have very loyal customers," said Jeanne Groat, owner of C.J. Kard. "Normally we only advertise when we have something going on," such as the open house before Thanksgiving.

Attracting walk-by traffic is much more important than at the malls and big-box stores.

"For me, and across the board for downtown merchants, window displays are huge for two reasons: One, they get attention, and lot of times what you put in the window is what you sell," she said. "Right before Christmas we did a window called enchanted forest that was all pop up books and it did great."

Jeanie Freeman, manager of Regina's, a boutique clothing and accessories shop, agreed that downtown retailing has a different vibe.

"We still do the sales, we just don't do those crazy sales," she said. "We never really have."

Sales increase during the holidays, but Freeman said the total doesn't approach 50 percent of the shop's annual sales. Groat agreed.

"I would say our average sales during the holidays, especially December, are about two and a half times larger than an average month during the rest of year," she said. "It doesn't depend on fourth quarter, but volume is definitely higher."

The percentage also appears to be shifting at shopping centers. According to the International Council of Shopping Centers, general merchandise sales during November and December only accounted for 22 percent of annual sales during 2006.

"I think here at The Citadel it is a little higher, probably about 30 to 35 percent," Loschen said.

But, she said, 50 percent of gift card sales definitely occur during the six weeks between Thanksgiving and Christmas and even extend between Christmas and New Year's.

The National Retail Federation estimates that total holiday sales this year will grow 4 percent, weaker than last year's 4.6 percent increase, as more Americans struggle with less discretionary income tied to a housing slowdown and credit market crunch.

Copyright 2007 Dolan Media Newswires
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