With the GFC causing a plunge in discretionary spending this year, Christmas trade has never been more important for retailers. Erin O’Loughlin takes a look at what the independents are doing to ensure they cash in on the silly season.
I’m done,” says Justin Locke. The Perth-based co-owner of four men’s and womenswear boutiques is talking about fashion shows. At the end of one of the more challenging years in retail, the thought of running another promotional parade – or similar large-scale event – to drive traffic through his Subway DC stores this festive season is just too much. And he is not alone.
After months characterised by heavy discounting and sales, such measures are out of favour with independent boutiques across Australia. For Locke, this means embracing traditional marketing efforts such as an intimate VIP shopping night and the introduction of competitively priced accessory collections.
Subway DC stores specialise in premium designer brands such as Karen Walker, Chronicles of Never, Alice McCall, Life With Bird, Jessie Hill and Claude Mas. Quirky accessory offerings priced between $50 and $80 will be rolled out in the lead up to Christmas, along with Casio wrist watches priced at $130.
Perth womenswear label Morrison, which now operates six stores nationally, has a trifecta planned for Christmas: a new product, a new service and a new store. Chief executive Caroline Johnston says three special garments from its recent Perth Fashion Festival show will be available across all boutiques to “tempt those last minute elegant needs”.
“Our buyers are further tuned into the designers seasonal inspiration and have sourced accordingly, ensuring shoppers will find uniqueness in our gift collections,” Johnston says, adding that solid revenue is always generated in the quarter leading in and out of Christmas trade.
Celebrations are also underway for the brand’s new Sydney CBD store, which is scheduled to open before Christmas. In a move mirrored by Locke and other independents, Morrison will hold VIP nights in store to celebrate with loyal customers, staff, designers and friends the passing of another year.
Such events and Christmas trade in general are really “just about enjoying and trying to help people as much as possible to find what they need,” says Karen Rieschieck, owner of Melbourne-based boutique Alice Euphemia.
Stocking designer brands such as Arnsdorf, Maise, Marnie Skillings and TV, Rieschieck says she plans to “tinker” with more established promotional concepts over Christmas.
“We have our residency programs where we highlight different labels throughout the year. We’ve got one more planned coming up for December. It’s something we’ve been doing for a couple of years – we’ve always had events and exhibitions highlighting individual labels. The [program] we’ve got on at the moment is menswear, a label called Beat Poet from Sydney.
“For Christmas it’s still a little bit up in the air but it might be a little bit of a group show. Just bringing together some of [the designers’] one-off pieces, things you don’t usually get to see in a retail environment, some of the crazier samples that are more parade and editorial pieces.”
Rieschieck says special events are a good way to capture customers’ attention during one of the busiest times of the year, and the ongoing nature of the programs bring customers back in store long after the tinsel has been put away.
“We like to try and link the labels closer to their customers so that they feel more involved and have more of a connection to the products. Anything that goes towards that aim, we’ll try.”
In Sydney, The Corner Shop will use the festive season as a launch pad for a collaboration with a difference. ‘Dialog for The Corner Shop’ is a range of leather purses and fabric embroidered bags that will land in the The Corner Shop’s two boutiques in November.
The collection was created in conjunction with the Hong Kong-based Dialog brand and employs fabric trims produced by charitable communities and micro-business projects across Asia.
“It is important for The Corner Shop to participate in charitable initiatives and present these in an environment which also showcases the best of fashion in the same location,” says The Corner Shop buyer Elise Pioch, who injects high-end brands such as Miu Miu, Gail Sorronda, Willow and Josh Goot into its Paddington and CBD sites.
What’s more, the new collection is a way for the store to foster the Christmas spirit and have it linger in store. “We believe in a positive attitude,” Pioch says. “Regardless of the time of year, women love shopping in a space with positive energy.”
The upbeat outlook also translates to independents’ trade expectations for Christmas. All retailers that Ragtrader spoke to are expecting decent sales at the very least, with Johnston from Morrison the most chipper of the bunch.
“While Christmas has boosted solid revenue in the quarter leading in and out in the past, this Christmas will be greater than ever before,” she says. “We anticipate significant growth on prior years based on stronger emphasis on ‘experience’.”
With all independents pouring similar energy into Yuletide trading, one hopes the ‘significant growth’ creeps into their balance sheets as well.