Investing in Retailing – Reading the Trends of Retailing

Investing in retailing can be exciting, but it can also prove to be frustrating at times. One of the most popular notions of investing in retailing is that the Christmas shopping season is the time of year when most retail businesses make the most money. That is why retail businesses always seem to be rushing Christmas every year. The sooner they can get consumers excited about Christmas, the sooner the Christmas profits will start kicking in. But the Christmas shopping season always seems to wait for the day after Thanksgiving, known as Black Friday, to really get started. Recently, some larger retailers have started the Black Friday specials on Thanksgiving night. As long as people continue to line up for the savings, the retailers will keep making the sales start earlier and earlier.

Another retail trend you should be aware of when investing in retailing is the change in seasons. Summer gear usually goes on sale in early spring and starts going on clearance right when summer starts. It can be frustrating for the consumer that needs to buy a bathing suit in August, but that is the way the seasonal cycles work. People who are investing in retailing need to be able to read the seasonal trends and know when to start putting some products on clearance while other products can remain at full price. For example, people buy jeans all year long. So there is no need to put jeans on clearance when the winter shopping season is over.

Companies investing in retailing consider shelf space to be their most valuable asset. Manufacturers know that if they can get products on retail shelves, then those products have a good chance at selling. That is why there is such a battle between manufacturers to develop the right marketing plan to convince retailers to put their products on the shelves. Manufacturers are investing in retailing packaging and aisle displays to try and convince store owners that the manufacturers’ products will generate revenue for the store. It is an ongoing process that can cost manufacturers a lot of money to potentially get no results.

Investing in retailing means understanding which impulse purchases work for which stores. Impulse purchases are those small items you see on racks near the cash register. People who are investing in retailing spend years trying to determine which products work best in those racks. If you can catch people on an impulse as they are leaving the store, then you can generate more revenue.

About Richard Wilson