Getting Christmas merchandising right in food retail

The most wonderful time of the year is nearly upon us, and with the consumer expectation for fun festive experiences at every turn – and bottom lines dependent on a successful festive season – it’s vital for Speciality Food readers to create the kind of atmosphere that will get customers inspired to spend. Thankfully, there’s a myriad of ways to set yourself apart from the competition and create an atmosphere worth returning to.

“Merchandising is crucial in retail at Christmas for four key reasons,” says Will Gadsby, managing director of Gadsby. “First, increased consumer spending during the season makes it vital for retailers to showcase products that appeal predominantly to shoppers’ emotions. Second, festive merchandising – softer lighting, filled Christmas-themed hampers and decorations – enhances the shopping experience and encourages customers to spend more time in-store. Independents can create a cosy, more personalised shopping atmosphere with bespoke decorations and holiday-themed displays that reflect their brand’s character.”

If that ‘character’ is local and rustic, Will has a simple display solution that will help you stand out from the crowd. “Highlighting niche, artisanal or locally made products in well-organised gift sections helps attract customers seeking unique items. Place these products in rustic wicker display baskets or wooden crates to add to the ‘handmade’ appeal. Baskets and crates are great for reusing and repurposing throughout your store.”

“In a sea of competitors, you need to stand out, making your store the go-to choice on every list, whether it contains gifting must-haves or grocery supplies,” says Caitlyn Smith, product manager at WBC. “With beautiful displays, noteworthy packaging or a vibrant fabric bag, you have the opportunity to give your brand identity extra visibility, creating a memorable impact and ensuring that customers can distinguish you from the crowd.”
The aim of the game is to invite your customers into a wonderland of festive fine food, and that doesn’t need to cost much money to create. “Customer expectations run high during the festive season, so creating an emotional buy-in is essential,” says Caitlyn. “Think out of the box and introduce elements that appeal to the senses and embrace the Christmas spirit using mouthwatering aromas, visually appealing counter displays and music that sets the mood. Think along the lines of beautifully presented mince pies, fresh from the oven and piled high on raised food stands and branded ribbons tied around enticing hampers of your best ploughman’s selection.”

Plan for success

While Christmas is the most profitable time of the retail year – and therefore should be maximised wherever possible – there’s a fine line between attempting to sell the festive spirit when people aren’t quite ready and missing out on sales from your more organised customers. This is the season when planning ahead really comes into its own – without investing time into how those busy weeks will ideally run you run the risk of unnecessary stress and, even worse, missed opportunities.
“Christmas adds an extraordinary and exceptional dynamic to the retail year, and food shops encounter unbelievable experiences,” says Edward Berry, partner at The Flying Fork.

“Many, in fact most regularly take substantial percentages of their annual income in only a few short weeks. Average spend rises and items are bought that are never repeated at other times of the year.
“When to launch your Christmas range? I recall visiting Harrods some years ago and finding a Christmas department trading in July,” says Edward. “The explanation that I was given at the time was demand from overseas visitors. I was more concerned at the sanity of the employees having to listen to Jingle Bells every day for nearly six months!”

Naturally, opinions differ across the sector, which means it’s important to learn from last year’s triumphs and errors to find the correct balance for your business. “Traditionalists would say that you shouldn’t begin your Christmas sales thrust before December, but as so much emphasis is put on this period, then ensuring sufficient time to meet targets may mean an earlier start. But then many consumers leave everything until the last minute. As ever, previous years provide much of the evidence for decision making – and confirms the importance of a post-Christmas analysis and review in January.”
“What is essential beyond anything else is planning,” says Edward. “Some of this is prompted by suppliers who require pre-orders and commitments, in particular cheese producers and wholesalers. But they are not alone. No one within the supply chain wants Christmas stock unsold in January.”

Make it easy for your customers

Dividing your festive section into clearly-defined segments is a smart move that will help customers navigate your store during a particularly busy – and often rushed – time, says Will. “Creating festive-themed easy-to-navigate sections like ‘gifts for her’ or ‘stocking fillers’ simplifies shopping and is an easy merchandising win. Use chalkboard signs to easily update your messaging as and when you need to.”
Making it easy for customers to find what they need is imperative, whether that be a gifting item or a more incidental seasonal purchase. “What is important is to identify clearly the Christmas items, be it food or gifts, so that they are easily found,” says Edward. “Don’t forget the all-important impulse purchase, so have plenty of spots with quick grab stocking fillers.”

As well as having clear differentiation between Christmas and all-year-round products in terms of the layout of your shop, there are smaller ways but no less valuable ways you can increase both the visual strength of your festive offering and its efficiency. “It’s always good to have check lists or order forms that prompt customers,” suggests Edward. “In butchery it’s a given that turkeys are ordered in advance. This is the moment to give the customer a lead on supplementary goods, anything from other items on the Christmas dinner list, to suggestions of things they might not have considered.”
Plus, be sure to bring in promotions to aid your upselling efforts. “Don’t be shy of promotions,” says Edward. “Although you can be sure of higher spend, a well chosen and costed promotion can provide opportunities to upsell.”
“Effective merchandising, especially around checkout areas, can make your store stand out and boost impulse purchases,” says Will. “Make sure your signage is clear and highlight any seasonal promotional items.”

Think beyond floor space

While merchandising may seem to be an easier task the more space you have, that’s not necessarily the case – all small-scale retailers require is to think vertical and versatile. “Even if retailers are limited in space, they can still make a big impact,” agrees Will. “We designed CrateWall specifically for those who don’t have a huge amount of space to work with. The units can be rearranged however you like. Dismantle and move around your store as and when you need to.”
“Utilise your vertical space further by incorporating multifunctional fixtures like metal display stands, tiered shelves or hanging displays. Keep things looking up-to-date and fresh over the Christmas season by rotating stock regularly. Using wooden crates as risers allows you to create a tiered effect on countertops, creating the illusion of even more space.”

Caitlyn agrees then when space is at a premium, think beyond floor space. “Take advantage of your vertical space by finding display options that can be stacked or built upwards,” she says. “Our Matlock tripod risers and Railton range are a great example and are designed to help you show off your produce without the need for additional fixtures. Give your bestsellers top priority (Christmas cakes, fine wines and bespoke chocolates) and fill the remaining space with items that are eye-catching and profitable. Plus, using trolleys and vertical freestanding shelving units gives you the option to carve out new walkways or points of interest while optimising your floor space.”
Ultimately, once your displays are attractive and functional, don’t feel you need to reinvent the wheel each and every Christmas. “Unlike other times of the year, I rarely encourage much innovation at Christmas,” concludes Edward. “It’s for many a deeply consistent time, in particular when it comes to food, with family traditions passed down through the generations. This means providing recognisable items that meet the Christmas menu list.”