Once the highlight of the annual sales calendar, Christmas has become an increasingly frustrating and tough period for local retailers in Scotland as the major multiples and discounters bring new levels of deals to attract shoppers.
by Émer O’Toole
There remains plenty that local retailers can do to capitalise on the festive shopping frenzy, and the key is in highlighting the categories and opportunities that are most likely to deliver sales and profits over the period. SLR considers all things festive and asks major suppliers and retailers alike what the answer will be this year to unlocking a Christmas bonanza.
As the second biggest occasion in total chocolate, Christmas is a huge gifting occasion for adults, while sharing packs play a big role in households as friends and families come together during the festive season. The new Cadbury Dairy Milk Santa Gift Box contains bitesize chocolate pieces (rrp £2.99). Maynards Bassets Wine Gums Merry Mix comes in a jar format (rrp £5.99). Another brand new gifting option this festive season is the Drumstick Gift Box, which is filled with classic Drumstick variants including Drumstick Squashies, Drumstick Bon Bons, and Drumstick Lollies.
Burton’s is introducing a host of new festive arrivals for 2016, including Cadbury Mini Fingers Stackables – a selection of three ‘stacking tins’ each containing a different flavour of Mini Fingers – featuring milk, and two new flavours: Honeycomb and Double Chocolate (rrp £5); a Cadbury Fingers Milk and White Chocolate Assortment tin (rrp £3); and the Cadbury Biscuit Assortment Tin (rrp £5) which has been reinvented to include a modernised front of pack design and shape; newly developed white and dark chocolate biscuits in addition to milk favourites; and the introduction of a Crunchie biscuit.
Soft drinks are key to profit opportunities, as consumers look to stock up on their favourite brands including Irn-Bru and the Barr range. Carbonates and fruit drinks see the biggest uplifts and large pack formats and multipacks are in particularly high demand as shoppers prepare for family gatherings and parties. AG Barr’s popular Barr range will be ‘fizzing with festive flavour’ this Christmas. “The Barr range is a huge hit during the festive period as shoppers look to purchase brands they love and trust for their family and friends,” explains Adrian Troy, Head of Marketing at AG Barr. AG Barr research reveals that Lemonade and Cola are particular must-stocks at this time of year: lemonade’s share of all soft drinks sales increases by more than two thirds at Christmas, and in the two weeks before Christmas there’s an uplift of 60% on cola large PET and 30% on cola multipack cans.
Christmas continues to be a key sales period for sweet confectionery so getting your offering right is essential at this time of year. The total confectionery market has grown over £6 million in the last two years, according to IRI market research, and this trend is likely to continue this year. The Swizzels Sweet Shop Favorites tin continues to be hugely popular over the festive season. The classically branded sweet tin is packed with Swizzels’ most popular brands including Squashies, Love Hearts, and Parma Violets. Emma Herring, NPD Brand Manager at Swizzels, says: “Our range lends itself well to all sharing occasions due to the huge variety of much-loved sweets – there really is something for everyone. The products have fun bright designs that stand out on shelf and appeal to customers. Our range offers value for money and great variety which is something all customers are looking for at this time of year. The range also works well as a gift or stocking filler for sweet lovers.”
Household favourites such as KP Nuts’ best-selling caddies and Frosted Nut Mixes will encourage shoppers to trade-up during the festive season, and drive basket spend amongst those looking for quality snack products to share with friends and family. Matt Collins, Trading Director at KP Snacks says: “Christmas is a key opportunity for retailers to maximise sales within the category as shoppers are less likely to compromise on either quality or flavour during this time.”
As well as the extensive nuts range, further KP Snacks favourites will be back this year including: Pom-Bear Snowmen, Hula Hoops Stars, KP Cheese Footballs and Chio Maxi Mix. Each is available in formats perfect for sharing. Pom-Bear and Hula Hoops’ iconic shapes have undergone their annual makeover to take on festive shapes and add an element of fun for the whole family.
KP Snacks is also supporting retailers by providing convenient formats that don’t take up too much shelf space, plus branded POS materials such as festive shippers, to generate excitement and boost impulse sales. Caddies, for example, are a great addition to any retailers’ Christmas range as they tempt shoppers to pay a premium for a quality snacking product. They come in a stackable format that ensures they are convenient for every shelf.
- Stock the bestselling lines and use our recommended stock list to help drive sales.
- Be prepared early:
- In October start the countdown to Christmas with self-eats.
- Continue the countdown theme in November with advent and novelty sharing lines.
- December — the magic of Christmas is here — stock selection boxes, Christmas themed gifts, family sharing lines and top-up gifts.
- Utilise manufacturers POS and build impactful displays in store to showcase your full seasonal range. Also remember to utilise the impulsive counter space for self-eat treats.
- Help shoppers manage their Christmas spending by giving a choice of self-eat treats and stocking fillers with products under £1 rrp.
- Make the most of manufacturer promotions.
- For further information on how to make the most of Christmas sales, visit deliciousdisplay.co.uk.
Elyse Charvin, Shopper Insight Executive at him! says: “Traditionally when people organise Christmas dinner they want fresh produce so they intentionally leave the important vegetable, meat and dairy elements of the meal to the last few days.”
Last minute may seem like obvious shopping behavior, however, despite the obvious opportunity, him! reveals that only 7% bought their food shopping from a c-store last Christmas. That suggests that despite the stress of the long queues and overflowing car parks, many shoppers don’t seek out their local store to fulfil their festive last-minute needs. There’s some suggestion that c-store retailers could consider allowing customers to shop online, or encourage more social media interaction to help fulfil orders. Competition also exists from the likes of Amazon Pantry, launched specifically to address the festive season demand with, for example, Christmas themed boxes.
However, retailers who stock the right lines in the run up to Christmas can provide the true last minute service, with the added benefit of local availability and allowing shoppers to avoid the crowds. Christmas is the biggest opportunity in the convenience channel due to its impulsivity, and in the best possible way, it can be a busy time for both customers and retailers.
Diageo recommends retailers follow these simple steps to make spirits easy to shop during the festive period:
- Range Stock the best-sellers and up-weight your premium product offering, highlighting new and growing product areas to ensure customers can pick up new trends in store. Display premium products above value products.
- Layout Ensure customers can easily find their must stock items. Blocking vertically by category first, then brand and finally size will help to do this. Ideally shoppers would like to see all bottle sizes by brand together.
- Eye-catching POS Use POS materials to draw attention to new, growing, seasonal or promoted products.
- Category insight Ensure that you are communicating a compelling reason to buy products on promotions.
- Price led communication Ensure the profit on return, recommended retail price and the actual vs promotional price is clearly communicated to shoppers across all products.
