Holiday Retailing: Closing the gap between six commonly held myths and the reality of retail buying practices
by Bernadette Finnerty

If you're thinking that July is the time to start planning for the holiday season, think again. Most retailers have already purchased the items they plan to sell during the holidays. So now is a good time to start getting ready for the 1999 winter wholesale markets, in anticipation of next year's holiday season.

Since many retailers attribute about 30 percent of their business to the holiday season, planning began long before last year's decorations were even put away.

To give craft artists a better perspective on the holiday retailing mindset, we talked with a few award-winning gallery owners about their buying habits for this all- important season. Each had suggestions for artists who wish to break into and excel in this market. They closed the gap between myth and reality.

MYTH: CRAFT RETAILERS START PURCHASING FOR THE HOLIDAY SEASON IN JULY.

REALITY: Galleries start planning their holiday inventory in January and February. Some work as far as a year in advance. "We know some artists need a lot of lead time and we operate on a very tight 'open to buy,'" says Gary Stam, co-owner of Craft Company No. 6 in Rochester, N.Y., "so we schedule deliveries as far in advance as possible. We replenish the following February or July with holiday items such as ornaments and gifts."

Nancy Markoe of Nancy Markoe Fine American Crafts in St. Pete Beach, Fla., says she is looking for two things when she shops the summer markets. "I am looking for high-end jewelry, which sells well at the holidays to a lot of my loyal customers," she notes, adding that gifts for spouses and significant others are popular at the gallery. "Also popular are lower-end gifts that are fresh and interesting, like ornaments, which are appropriate for friends, teachers, etc."

MYTH: AUTUMN IS A GOOD TIME TO APPROACH A GALLERY OWNER ABOUT CARRYING YOUR WORK FOR THE HOLIDAY SEASON.

REALITY: The holiday season is already in full swing. By the late fall, most galleries get so busy that owners and staff no longer have time to look at new work. Most say they will occasionally make exceptions for items they feel strongly about, but they generally have difficulty spending adequate time looking at new work once the holiday season gets underway. "Even at other times of the year, it's difficult to set enough time aside to go through all the slides that are sent to us," Stam adds.

"Inquiries made in November usually just get put off until the following year," says Sharill Hawkins, owner of Show of Hands Gallery in Denver, Colo. Hawkins says she rarely considers purchasing any holiday items after July. "By then, I usually know how my year is going, and by that time, the budget is spent."

MYTH: THE HOLIDAY SEASON STARTS AFTER THANKSGIVING.

REALITY: To keep up with competition from department stores, galleries have begun decorating and setting up holiday displays as early as October. "On a certain level, we are competing with the malls and department stores for holiday business," says Stam, "so in a sense, we're keeping up with the competition. At first, people complained about the early jump on the holidays. But they're used to it now. Some even say it helps them get into the spirit."

Besides, as the holiday season continues to creep forward, retailers need to have inventory on hand even earlier. That means earlier ordering, receiving, unpacking, etc. Retailers need time to be able to handle the ever-earlier rush of holiday shoppers.

MYTH: HIGHER-PRICED ITEMS ARE EASIER TO SELL DURING THE HOLIDAY SEASON.

REALITY: Holiday items sell best under $30. While no gallery owner discourages an artist from creating work that is meaningful to them, they agree that creating a small line of production items that are unique and whimsical is an excellent way to pick up extra cash for the holiday season.

Markoe says she is always looking for innovative, exciting new work, even in production pieces for the holiday season. "Even if the artist prefers to do one-of-a-kind or very limited production work," she adds, "holiday items are an excellent income producer." She suggests creating a line that is a little more generic, functional and clever. "I like to say that 'everyone should find his or her coffee cup' -- any item that is a little easier to produce and is fun to create. People love to buy that kind of thing, because it's still made by the artist, yet it's not as much of a risk for people to purchase as a gift," she says.

MYTH: AFFLUENT, YEAR-ROUND CLIENTELE MAKE UP THE BULK OF GALLERIES' HOLIDAY BUSINESS.

REALITY: Galleries can have as many as 600 "holiday regulars," people who come in every year at the holiday season, but don't usually shop in the gallery for the rest of the year. "They're always looking for something new when they come in at the holiday season," says Markoe. "For some, it's the only time they shop in the gallery."

She points out that while the regular holiday clientele usually aren't as devoted to craft as some of her year-round regulars, they are definitely discriminating buyers who are looking for something new and different. "We used to make the mistake of trying to follow the trends, but then we realized, 'Wait a minute, we are setting the trends. The artists determine what is trendy.' That kind of approach really keeps people coming back."

Stam says that Craft Company No. 6 actually brings certain items into the gallery for the holidays that are quite different from the usual merchandise. "We buy a lot of folk art items, particularly ornaments, that are popular year after year."

This year, Craft Company No. 6 will set up a kiosk in the local shopping mall, in an effort to attract a broader clientele. "We've always wanted to try to sell crafts in a mall setting," Stam says, "but renting a store was far too expensive. So this was a perfect solution. We'll be selling ornaments only, but our purpose is two-fold. We want to create awareness for our store and explore the mall market."

MYTH: RETAILERS SHOP ONLY THE WHOLESALE MARKETS FOR HOLIDAY ITEMS.

REALITY: Obviously, retailers attend wholesale markets for the express purpose of buying inventory for their stores. But few gallery owners ever stop looking. In fact, Craft Company No. 6 makes a point of bringing in locally made, inexpensive folk art ornaments and specialty dog treats around the holiday season. "Those are always big sellers. We don't normally carry folk art during the rest of the year, but at the holidays, people really look forward to it, and it sells really well," Stam explains. Folk art ornaments are priced under $30. At that price range, he adds, gifts for friends, co-workers, UPS delivery people, etc., are big sellers. "It's important to understand that the retail buying public generally has limited resources. We don't want to miss out on that part of the market."

Stam says that he is always on the lookout for new and exciting things to bring in for the holidays. In fact, many of the holiday ornaments are made by local artists. "We have a really strong community presence," he says, "so locally made crafts are appealing to our holiday clientele."

Markoe and Hawkins echo that sentiment. Hawkins knows that certain artists will come to her with new work, but she also finds inspiration in outdoor retail shows. Regardless of what kind or how many shows gallery owners attend, all agree that they are constantly searching for something new to offer to their customers. In general, they say they try to be as open as possible to seeing new work; they appreciate when an artist takes the time to try to understand their time constraints.

REALITY: RETAILERS APPRECIATE PROFESSIONALISM, PUNCTUALITY AND COMMUNICATION, PARTICULARLY WHEN DEALING WITH HOLIDAY ITEMS.

"We usually over-buy by about 15 percent because we know that some items just won't get delivered," says Stam. "We really appreciate punctuality. But we were working artists for many years, so we see things from the other side. But if an artist anticipates a delay in shipping the work, communication is really important."

Hawkins stresses communication as well. "I'd rather be notified in advance if someone is going to be late," she says. "I think sometimes people are afraid to call for fear of how we'll react. But most of the time, we will try to work with the artist if we can."

Stam further cautions artists against writing more orders than they can fill. "We've found that artists hate to turn orders away," he says, "especially when they're just starting out. But then they find themselves unable to meet the deadlines."

Bernadette Finnerty is editor of The Crafts Report.

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