According to data from the the National Retail Federation, this holiday season will be the best one in many years for retail stores.
The economy is booming, and consumers are feeling more comfortable purchasing gifts than they have since before the early 2000’s recession.
While most types of retail stores respond to this increasing demand by stocking their shelves to the fullest, apparel stores are more cautious in planning their holiday season strategies.
Okay, so it’s pretty much too late to “plan ahead” for the holiday season. You’re already in the middle of it!
SPOILER: Method 3 below is what you’ll need to check out if you’re looking for an immediate way to restock your shelves, and keep products flying on and off the shelves.
But if you’re curious to see how different apparel stores use different methods to stock their shelves and make profit during the holidays without over-stocking or under-selling.
This is the traditional method used by most retail stores.
Start research on clothing trends just about the second the holidays end, and start ordering clothes about 9 months ahead of schedule.
When you do, order as much inventory as you possibly can to keep your shelves stuffed as full as possible when the holidays come next year.
It’s cheap, it’s traditional, and it’s safe.
But is it really?
There’s 3 major problems with this method that the retail industry is just now starting to understand:
You would think that apparel stores would be scrambling to purchase all the inventory they can get their hands on to meet the rising consumer demand.
However, apparel giants including J.C. Penney, Macy’s and Kohl’s are doing just the opposite.
Instead, they’re purchasing less inventory than usual, and on a much shorter schedule than you’d expect.
Dynamic demand forecasting is the idea of buying less inventory to both instill a sense of real urgency among consumers who feel they have to purchase their winter sales before they run out.
It also ensures that they aren’t left with a huge excess of post-holiday clothing inventory.
Not ensuring this with any strategy implemented can kill your cash flow, and leave you bleeding revenue.
Although it’s mostly implemented by bigger stores that have the heavy cash flow needed to make these quick decisions, pieces and concepts of it are also being used by smaller retail stores with some great results.
Ordering the clothes they need for the holidays only 3 months ahead, instead of the typical 9 provides retailers with a much more accurate picture of consumer demand, as the closer to the holidays it gets, the better you can predict consumer patterns and trends.
This results in higher sales, more accurate matching of customer demand, and less overflow.
Now, chances are if you’re reading this, you’re already in the thick of it, and need immediate relief.
You’re in luck – check this out:
More and more clothing and apparel stores are using revolving business lines of credit to get what they need immediately, especially in the middle of the holiday season.
Revolving credit gives you the chance to take immediate action, including:
And literally any other need you have – without burning through your own working capital.
Here’s how it works:
You never have to use funds you don’t need from your credit line.
Just take out only the amount of funds you need. You only pay for what you use, so you’re never overborrowing!
This is often the fastest and easiest way for clothing stores to finance their way out of any jam during the holidays, and take advantage of every opportunity.
Give a live representative at National a call at (877) 482-3008, and ask them how they can help you get you the immediate capital you need in as little as 24 hours.
Or, if you’re ready to get the ball rolling, you can apply online by filling out the simple 1-minute application below, and get the funds you need to take advantage of everything the holidays have to offer!
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Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
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Matt Carrigan is the Content Writer at National Business Capital & Services. He loves spending every day creating content to educate business owners across every industry about business growth strategies, and how they can access the funding they need!