Unwrapping Christmas: Retailer Insights to Get Your Ranging Right in the Festive Season

For many consumers, Christmas celebrations span the entire month of December – not just the day itself. But for retailers, it's a sales opportunity that kicks off in September.

Most retailers order Christmas confectionery in July, Christmas greeting cards in February, and other items a few weeks before September.

“We order our range at the end of July on the Londis pre-order, which includes confectionery, snacking, alcohol and gifting products,” explains Vrajesh Patel, owner of Londis Dagenham in London.

Some retailers order earlier, however. Scottish retailer, Chris Cobb, from Cults Stores in Aberdeen, completed his Christmas order in June.

How will this Christmas differ from previous years?

It’s hard to predict what customers will buy and how much - and this is something some retailers are struggling with. And it’s no wonder why.

The past four Christmases (2020-2023) have been vastly different. In 2020, shoppers treated themselves and spent more than they typically would have due to ongoing lockdowns – but curtails on socialising limited what was possible in December.

It was a similar story in 2021 with customers spending more for at-home socialising, but pubs and bars remaining open for business spread disposable income more thinly. The subsequent years saw shoppers spending less as they navigated the cost-of-living crisis.

The good news, however, is retailers think this year will be the same or slightly higher compared to 2023. The key is being prepared.

“Shoppers don’t have the disposable income they once had, which is one of the main reasons we stock our Christmas range so early. Customers can buy early and stock away if needed,” Patel says.

Cobb, however, has been more conservative with his stock this year. “We’re finding our customers are watching their money and the weather currently hasn’t helped, so it's hard to gauge how big Christmas will be,” he says.

“We are being optimistic but cautious with our range this year, but the key is focusing on products supermarkets aren’t offering.”

The right formats and categories

“We’re only 150 sqft, so we have to be precise in our ordering,” Cobb explains. “We also have a lot of competition nearby, mostly supermarkets.”

So how does Cobb ensure his Christmas range is a success? He goes premium.

“We focus on selection boxes, boxed chocolates and stock more high-end, premium brands, like Bendicks, Lindt and Ferrero Rocher,” Cobb adds.

Selection boxes are often a tradition among friends and family to kickstart the festive celebrations or work as a small gift for a work Secret Santa or teachers and school friends.

Wondering how else you can help your festive range stand out?

Here at Epicurium, we stock speciality lines that aren’t stocked just anywhere. These include:

• Tony’s Chocolonely - While it's now on shelves year-round, many consumers treat themselves at Christmas and that’s where Tony’s can drive spend. The supplier also launches an annual advent calendar for stores to stock. Some flavours include Milk Creamy Hazelnut Crunch, Dark Milk Chocolate Fudge Brownie and Tony’s Chocolonely Tiny Tony’s Mix (8x900g)
• Candy Kittens – Chocolate isn’t for everyone, so having a premium sugar confectionery brand in stock is vital. Candy Kitten flavours we stock include Sour Watermelon, Very Cherry, Wild Strawberry and Eton Mess.

Boosting your margins

Margin is a hot conversation among convenience store owners, with many ranking ‘raising overall store margin’ as a key focus for their business in the coming months.

Christmas stock offers a wide spectrum of high and low margin, as noted by Patel. “While the Christmas tubs, like Cadbury Heroes and Cadbury Roses, offer around 10-12%, our impulse Christmas confectionery offers up to 25-30%,” he says.

You can raise overall store margin by focusing on speciality seasonal products. This is because they need to work harder on the shelves to sell. The good news for stores is that some customers will be willing to pay more for these products, especially as it gets closer to Christmas.

These can be bought last-minute, once shoppers have purchased all their gifts, and they’re more aware of their leftover budget.

Promotions, promotions, promotions will drive volume sales, having a positive impact on your Christmas margin, too.

“We run promotions on pre-sale stocks, like impulse and gifting,” explains Patel. “We’ll do a couple of posts on social media, but it’s one that most notice as they come into the store.”

Cobb offers similar promotions, but focuses on alcohol, as it’s one area he can compete with supermarkets. “With the Minimum Unit Pricing (MUP) in Scotland, we can price similar to supermarkets, which helps drive footfall, especially at Christmas,” says Cobb.

“With it increasing to 65p from 1 September, people will be shopping around, and supermarkets can’t undercut us by dropping alcohol to low prices, which will help us during Christmas.”

Merchandising and in-store theatre

It’s no secret the impact in-store theatre has on sales, but Christmas is a time when it’s really important – and it’s easy to implement.

Suppliers and wholesalers will likely have their festive displays, but you can also invest in ceiling decorations for the whole store, window decorations and tinsel for any displays. It doesn’t need to be much, and a little bit goes a long way.

“We don’t do a Christmas tree because we’re limited on space, but we do decorations on the window and ceiling, just to help things feel festive and stand out,” Cobb adds.

Looking for tailored advice for your Christmas range? Get in touch for bespoke, on-trend product recommendations