A Year in Retail

Successful retailers tell a good story. Today's independents plan displays, signage, direct mail, websites and even product with an eye to telling a coherent tale of what makes their store special. But when it comes to events, too many store owners treat them like flash fiction — all-absorbing, last-minute, and then done.

But in-store events should not be stand-alones; they should build throughout the year, like chapters in a novel, each leading to the next until they reach their triumphant conclusion: meeting the retailer's goals for new customers, name recognition, sales and profit. What's more, retailers who plan an integrated promotion calendar rather than individual events can save on expenses and stress. If they take that calendar and tie it into product orders, larger events and shoppers' habits, they can make their event story a bestseller.

Two successful gift retailers shared their eventful years with Gifts & Decorative Accessories.

In 2004, Melissa Haberstroh, owner of The Burlap Horse, Boerne, TX, held five events, including a multi-store Ladies' Night Out. “This event was a significant turning point in the marketing philosophy of The Burlap Horse,” says Haberstroh.

While Melissa and her husband considered most previous events successful, this was the first time they'd evaluated an event as a marketing tool. The event cost $158.72 and store sales were $2,285. The combination of direct mail and in-store events had worked. So in 2005 Haberstroh took a radical step: she cut advertising and increased her schedule of events to 21.

At almost two events a month, one of Haberstroh's biggest challenges was coming up with strong themes for each, for she quickly learned that clients were not willing to attend an in-store event “simply for extended hours and a little food and drink.” To that end, Haberstroh culled ideas from magazines, trade shows and holidays, all while keeping an “idea file.”

The Burlap Horse's themes were a mixture of product-centered events such as trunk shows and signings, holiday events, and collaborations with other local businesses. Sometimes food was the theme, as in An Evening of Entertaining with Cheese. The shop even had a party to celebrate winning a 2005 Retailer Excellence Award from Gifts & Decorative Accessories.

Besides staging their own events, the Haberstrohs allow clients to use the store for parties of their own. This is a win-win situation, as clients get a lovely space that they don't have to decorate, and The Burlap Horse gets a captive audience of potential new customers. One company also gave Burlap Horse gift certificates to its employees as a Christmas present. Gift certificate sales totaled $1,750 and other sales totaled $2,131. The client's appreciation party increased sales 24 percent over the previous year.

In the future, Haberstroh plans to request a minimal fee to rent the facility to offset staff, utility and janitorial costs. Compared to renting and decorating a hall, clients will still get a bargain.

JoAnn and Rebecca Schotthofer have owned The Hayloft Shops in Mossville, IL, for 35 years. With a record like that, some storeowners would rest on their laurels. Instead, the Schotthofers chose to use their 35th anniversary year to transform The Hayloft Shops from “just” a local gift store to a brand name. They expanded their selection of family room accessories, gourmet food and kitchen accessories and baby giftware, and developed a marketing campaign. They also turned to direct mail, but instead of abandoning print advertising, the Schotthofers decided to choose a single print publication and “dominate” it, rather than place scattershot ads in a variety of publications, TV and radio.

For example, The Hayloft Shops promoted the three-day Wilton Armetale signing and cooking event (during its annual art fair and fall festival) by putting a four page insert in a newspaper with a circulation of 200,000. The insert was supported by newspaper ads, TV ads and direct mail to 2,000 customers. “Sales were record breaking,” report the Schotthofers, who added more than 300 new names to their mailing list.

The Hayloft Shops plans its events around big names: The Schotthofers invited three family members/CEOs of their major brands for signing events. They placed one Fenton event in February, traditionally a slow month, and saw monthly sales tripled and customer numbers increased. In April, the store focused on Fenton again, as part of the company's 100th birthday celebration. Again, sales increased. (The store also brought Mike Fenton in for a signing event in October.)

In June, The Hayloft Shops turned to its own anniversary special event. To build excitement, the Schotthofers's direct mail piece contained a real key. Customers could try to open a “treasure chest” and, if they succeeded, win the contents.