Wednesday, December 3, 2008

Retail Seasonality

I recently had the opportunity to visit Frankenmuth, Michigan. The entire city lights up around Christmas time. Of course, my visit was not complete without a stop at the Bavarian Inn for supper and Bronner's Christmas Wonderland. Bronner's could probably be seen from miles away at night with all of its holiday decorations lit up around the store. The interesting part of this area though, is that it has managed to become a destination spot that is more than just during Christmas time. World famous chicken dinners
and a truly authentic German history has helped make this city a must see destination for Michigan visitors.


Retailers that deal with seasonality have a difficult task before them. Having the right items at the right time is no easy feat. Frankenmuth retailers have managed to develop a sustainable competitive advantage, but I bet it was not easy. Merchandise retailers have their work cut out for them when they choose to sell items that are specialty items instead of staples. If they buy the item too early then it sits on a shelf and takes up space better used for something else. Too late and the customers have gone elsewhere in search of the product. Many strategies exist for inventory monitoring and merchandise ordering. This is another key aspect to keep in mind when starting or managing the purchasing department for a store. A manager needs to know his/her products, but also their customers. When it comes to seasonal items, the more knowledge about buying habits the better. Fortunately for the Bavarian Inn, Zehnders (sister resaurant), and Bronner's Christmas Wonderland; food and Christmas shopping never go out of season!

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