As someone who worked in a retail setting for many years while also being a reseller, I can confidently say that the slowdown that occurs during the summer season is normal for many retail-based businesses. Within any business, there are are fluctuations in sales revenue and customer activity throughout the year; this is commonly referred to as seasonality. Today, I wanted to share with you some information on seasonality and how I approach these slower periods in my business.
First and foremost, if you are currently experiencing a lull in your sales, know that it is completely normal and that you are not alone. For many businesses, the summer months tend to be the most challenging as customer activity typically slows down. In fact, within the retail world, there are fluctuations that occur in sales throughout the year due to external factors; this cycle is commonly referred to as seasonality. When a business is able to predict their own seasonality for the year, they can capitalize on strong periods and keep their business afloat during the slower ones.
What is Your Business’ Seasonality?
For each of us, the answer to this question is going to be different and will depend on many factors. Above is a chart that I pulled from Poshmark showing my gross sales from July 2020 through June 2022. The grey line shows my sales from July 2020- June 2021 while the green bars show my sales from July 2021- June 2022. Typically, when a business is trying to figure out their seasonality, they will pull data from the previous 3 years. Since Poshmark won’t allow me to do that in a monthly format, we will just look at the past 2 years.
One observation that you might make from this chart is that December is one of my worst performing months. Why? In December, Eric and I went back to New York for 2 weeks and my closet was put on vacation mode. As a result, my sales dropped significantly. Traveling to New York for the holidays is something that will more than likely occur in our future and as a result, it is a predictable part of our seasonality cycle and we can prepare for it.
When trying to figure out your own seasonality cycle, it is important to understand why all of the peaks and valleys are occurring in your business. Not only do you have to look at buyer behavior but also your own behavior too. This will then help you to not only understand your business’ cycle but also allow you to properly prepare for the busier and slower seasons.
Retail Sales Seasons
Within the retail world, there are general sales seasons that are predictable from year to year:
The Holiday Season (October through December)- This is probably the easiest time to make sales as customers are actively shopping due to the various holidays and events that occur during this period.
Post-Holiday Season (January through March)– People’s shopping habits tend to slow down after the busy holiday season so business’ will experiment with various techniques to draw in customers.
The Spring Season (April and May)- People are beginning to shop again and this is a time when business’ will capitalize on whatever brings them customers.
Summer Slowdown (July through September)- This is the slowest time of the shopping year and many businesses will be creative when trying to fight this summer slowdown. This is typically due to customer travel, school calendars, and people simply enjoying the outdoors. Fortunately, Q4 is approaching and many businesses are preparing for that busier season during this time.
This is important to be aware of as some aspects of your business’ seasonality are out of your control.
What Should I Do During These Slower Periods?
Personally, I like to have a down-season game plan. I will focus on improving various aspects of my business as these improvements may lead to my success during my busier season. Some examples of how I like to improve my business during the slower season includes: decluttering, catching up on unlisted inventory, create better organization systems, retake pictures, improve and update listing’s descriptions, and brand research. During slower periods, I like to focus on factors that are within my control and will help my business to continue to succeed in the future.
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