3 things to do now to prepare your business for the holiday rush

The holidays can be one of the most challenging yet fruitful times of the year for retailers as they strive to end the year on a high note. And right now, in the summer, is the critical time for sellers to begin preparing — especially those who've historically relied on manual processes or outdated systems to get them through this key selling period. By arming themselves with the right technology that will inevitably break down barriers for customers, free up bandwidth for staff and make adoption of new tools less daunting, retailers can position themselves for their best holiday selling season yet.

Technology not only optimizes for operational efficiency, but addresses the consumer's desire for more modernization as well, with more than one-in-fiveshoppers stating up-to-date technology makes them more likely to shop at forward thinking brands. If that seems easier said than done, we'll break down the preparation that enables any size of business — especially small-and mid-sized retailers who face the steepest holiday competition — to streamline operations and deliver an enterprise-grade seasonal shopping experience throughout the festive fall and winter months.

Inventory management

Undeniably, the biggest pain point for retailers is the manual labor required to manage inventory, which can complicate operations and even prevent a business from scaling up. From a back-end perspective, these tasks can include counting stock, reconciling in—store and online sales, generating purchase orders, managing and communicating with vendors, and adding stock to inventory — all of which are exacerbated during the holiday season when retailers are trying to predict the right amount of stock to order. To avoid the dreaded over-or under-supply issues, sellers who adopt an automated inventory management system like Square for Retailcan feel more confident that they have the right amount of SKUs by leveraging the power of automation and data. With commerce channels ever expanding, having a modern inventory tracking system will consolidate sales across physical locations and digital platforms — ultimately, positioning your business to continue to sell from a place of strength.

Alongside the benefits of managing back-of-house inventory, sellers can leverage the power of automation to provide a better shopping experience for customers during the holidays. Currently, 44% of shoppers want to use automation to help find product information or inventory. So, in order to retain a loyal and satisfied customer base, sellers need to provide customers with the flexibility to buy, return and exchange anywhere and anytime they want.

Improving customer relations through staff optimization

Labor shortages may be slowing down in the retail industry. Square retail data in fact indicates moderate growth in staff sizes and wages, up 11% since 2019. To help retain valuable talent, consider automation technology to empower staff while also delivering a better customer experience overall. Currently, 76% of consumers state they prefer retailers who use automation instead of depending entirely on on-site staff. This doesn't replace employees, but rather enables them to focus on higher-value activities. This is further evidence that consumers want to shop and buy from brands who are reducing friction at multiple touch points. When looking at online channels, automated messaging tools can expedite frequent queries, returns, exchanges, and more. Additionally, marketing software like Square Marketing can automatically customize messages to your diverse customer base and drive traffic towards effective commerce channels.

By equipping your business with AI-powered tools, such as a team management software, you can improve workflows and save time, enabling employees to focus on more strategic and creative tasks. Auto generated reports and analytics can help staff gauge business performance in real-time and pivot the strategy as needed to service customers and sell more effectively. In fact, 91% of retailers use or plan to use back-end and customer support automation to decrease staff members' hands-on time.

Driving foot traffic in-store

With in-store shopping bouncing back to pre-pandemic levels, brands will need to create more unique shopping experiences to maintain momentum. Many retailers are already experimenting in this space by offering on—site food and beverage options such as coffee, ice cream, even up—scale dining experiences and branding it as their own. Based on recent data from Square and Afterpay's State of Retail report, spending on services such as spas, cultural and recreational activities and entertainment have trended higher than the retail industry average. These are areas of opportunity worth looking into to drive foot traffic as well as diversify revenue streams.

Due to the ongoing impacts of inflation, many consumers will remain budget-conscious and wary of overspending going into the holiday season. Merchants need to be strategic and equip themselves with the right technology solutions to meet consumers where they want to shop, save their employees from burn out and stay one step ahead of the competition.