Women’s Wear Daily covers the frightening phenomenon which occurs post-Christmas through the early in the new year that we have coined, the 'Retail Vortex’. Due to mounting pressures of post-Christmas consumer behavior, retailers are at risk of falling into a ‘Retail Vortex’ of increased costs, soaring returns and inventory concerns in Q1 that impact the all import seasonal profits.
Striking a balance between convenience for consumers and impact to the bottom line is essential. Retail is only getting more complex, especially during the crucial selling moments of the holiday season, and retailers need to empower themselves with valuable insight from their data to ensure swift action is taken before the opportunity passes them by.
Navigating the headwinds of the Retail Vortex will take more than looking at top-level metrics. To truly avoid being disrupted by the Vortex, retailers and brands must go deeper to analyze their customers by profitability and deliver corresponding discount strategies that will lead to an improved bottom line.