As we are approaching the summer season, many of us will prepare by opening the backyard pool, shopping for Father’s Day gifts, and searching for Independence Day essentials. This season brings about certain products and fashion trends that are in high-demand, and retailers often have to prepare by analyzing which products are likely to sell and strategically stocking inventory.
WHAT’S IN HIGH DEMAND FOR FATHER’S DAY?
Shopping for men –especially men’s clothing — can be tough. That’s probably why it’s typical for fathers to receive accessories like ties, belts, and wallets as gifts. However, polos and golf shoes are popular as well, since the sport is quite common for dads.
WHAT’S IN HIGH DEMAND FOR INDEPENDENCE DAY?
When you think about what you’re going to wear for Independence Day, you’re likely to wear something red, white and blue to honor our country. Not only that, but most people plan for an extended weekend by taking a trip to the beach. This means tank tops, flip-flops, sunglasses, hats and bathing suits will be in high demand.
HOW DO RETAILERS PREPARE?
To anticipate the high demand of these products, retailers can strategically allocate their inventory. Retailers see holidays as an opportunity to make a profit. That’s why you see so many sales! In order to boost their profit margins, retailers think strategically and first analyze which of their stores see a lot of foot traffic and sales. Then, they plan to ship more store merchandise in their most busy and profitable locations. According to CNBC, “This has become increasingly important as bricks-and-mortar stores are filling more of their orders from their local shops, including the option to ship from or pick up online orders in store.”
In addition, if retailers are unsure how a product will perform in stores, they may ship a small amount of the product to a few select stores. If the product performs well, they may consider replenishing the product, then ordering bigger shipments of the product for the rest of their stores. This strategy is adopted from fast fashion, which allows retailers to create “limited-time only” products to encourage faster purchases. In addition, larger retailers may advertise a “pre-sale,” to test the waters to certain products. If they perform well in the pre-sale, then they may ship more of that product for the actual sale day.
This blog was originally published on TrinityWorld.com