Navigating the Christmas minefield

It may be the most wonderful time of the year for the majority of festive consumers – especially their kids – but Christmas can be chaotic, fraught and a planning minefield for retailers. Of course, the work starts months before the big day: by midsummer many will have finalised their stock orders; marketing campaigns are signed off even earlier in the year.
Each autumn, the national and trade media is awash with predictions of how much people will spend in-store, online and via their mobile phones; annually, most proclaim it will be “The Biggest e-Christmas” or “The First m-Christmas”.
According to one report, UK online sales are this year forecast to reach £5bn in the run-up to December 25, accounting for nearly an eighth of the expected £40.3bn festive shopping total. But does that mean the long, slow death of the high street?
In my opinion, no. I don’t believe the physical and virtual Yuletide bonanzas should be treated as mutually exclusive. A growing number of consumers of all ages research gifts online, yet a trip to the high street remains an experience deeply ingrained on the British psyche. Nothing can beat the festive ambience of carol singers and brass bands on the street and the Christmas experience offered in shops. There is still something very personal about stocking up on presents in-store, not to mention the benefit of having a sales assistant on hand to answer questions.
The key for retailers is to maximise that experience. Some have announced their intention to stay open till midnight on December 23rd to chase every pound they can. Smart retailers have recognised they no longer call the shots and have responded to demand by extending their hours. This is a natural progression, for even the most organised of shoppers often finds last-minute gifts to buy. It will be interesting to see how much in-store trade takes place in those final hours.
Similarly, stores are also savvy enough to realise that wise shoppers can go from seeing price tickets in-store to checking out cheaper offers online. Most shops now offer price matching; acceptance of the well-informed consumer is important to success.
There are many differing views about what makes a great in-store experience. If there weren’t, Christmas shopping would be tedious at best. But if I were to suggest a few things all retailers should get right, these would include:

· Line of sight – display fewer products so consumers can see more of what they want
· Availability – if consumers have researched online they expect it to be available in-store when they come in; if it’s not, they’ll go somewhere else
· Interaction – a glitzy display’s all well and good but that alone is a lazy and often poor aspect of the high street at Christmas. People want to touch and try out their gifts
· Simple sophistication – people want strong imagery, a strong and consistent Christmas theme throughout the store
· Destination – transform the manic present rush into an experience by making the store a place to be and spend time. Offer a coffee and mince pie with purchases, for example, tying together food and retail offerings.

Joining up advertising, digital and direct communications is another vital component of Christmas retailing. We’ve all seen this year’s crop of Christmas TV ads, from the sparkly to the sentimental. Choosing imagery that can be carried over from the screen to the web and to in-store displays is vital: walk past any Joules store (pictured), for example, and you’ll be captured by the sophistication of a country Christmas, as wreaths of real feathers adorn the windows.
Will these strategies rebalance the Christmas revenue split in favour of the high street? Probably not. I can’t see anything reversing the rise of digital shopping any time soon, when you consider how time-poor large swathes of the British public have become.
But it can stem the flow of cash from one pot to another. Stores will always be an important part of the retail portfolio for those, like John Lewis, that do it well and create shopping destinations – all year round, but especially at Christmas.

Nick Cole is managing director of SP Group, a St Ives company