The National Retail Federation (NRF) expects holiday spending for 2010 to rise 2.3 percent to $447.1 billion dollars. After a rough couple of years, an increase in dollars spent on gifts and entertainment this year is welcome news to retailers, restaurants and staff. In addition to planning your inventory, hiring extra help, and jazzing up your store displays, here are a few tips to keep in mind so your holiday sales don't turn into holiday blues.
Be prepared for crowds.
Special events, in-store entertainment, promotion sales, and celebrity guests can be effective ways to increase sales. Make sure you provide a safe and sane environment for your customers in case of higher than expected attendance. Guidelines from the NRF recommend that your event planning include extra attention to staffing, training and communication. For example, additional security may be warranted during peak hours or for special promotional sales. Also make sure that staff training on emergency protocol is up-to date, especially important for seasonal hires. In addition, provide clear communication with staff members and reinforce which managers and store personnel are in-charge. A good source for information on crowd control for retail businesses is available from the NRF.
Defend yourself against fraud.
Return fraud is expected to cost retailers $3.7 billion this holiday season. The most common type of return fraud is the return of stolen merchandise, an almost universal problem. Retailers estimate that 3.89 percent of returns with a receipt are fraudulent, but it jumps to 12.6 percent for returns with no receipt. Increasingly, stores are requiring customers who return merchandise to show identification or provide a receipt. Afraid this might alienate your good customers? Then consider this, according to an NRF survey, 87.9 percent of Americans feel retailers return policies are fair. Post your policy, prepare to be somewhat flexible and be sure to offer gift receipts. The Retail Fraud Survey is available at www.nrf.com.
Protect your payments.
With fewer customers choosing to pay by credit card due to economic pressures, make sure you welcome alternative ways to pay. Many customers may eschew the credit cards for cash, debit cards and checks this season. Checks are still a comfortable way for customers to pay as customers are leery about carrying high amounts of cash during crowded holiday shopping and many choose not to increase balances on their plastic cards. Check services can offer your business a convenient way to handle check deposits by eliminating trips to the bank and guarantee features can protect you from bad checks including those returned for NSF and stop payment. Electronic check conversion, check verification and check guarantee programs are available that can help you easily accept payment from your customers, often without requiring investments in additional equipment. With cash flow at a premium, it may be time to look into how a check service can increase sales and reduce risk for your business.
Taking the time to prepare for the holidays can reap benefits that will keep you in business throughout the year. For more information on check services and guarantee programs, visit www.cross-check.com or call (888) YES-@CHX.
