How To Survive A Slow Month: 4 Strategies For Managing Financial Fluctuations

Retail businesses will likely experience financial fluctuations throughout the year due to lower footfall, out-of-season products, and dips in consumer spending during ‘slow months’.

Retailers must plan ahead of their sales and revenue declines to survive the slower months and welcome the next peak.

Here’s a breakdown of some of the months that US retail businesses may experience a decline in sales and why:

• January and February. After the festive season is over, consumer spending significantly declines as people financially recover from buying Christmas gifts. In addition, fewer people are heading in-store due to the cold weather in many regions across the US and New Year’s resolutions to save money.
• July. With many consumers away on vacation or saving for their vacations, July can be slow for many retailers.
• September. After the back-to-school shopping season in August, consumer spending typically slows again as people wait for the holiday sales to begin in late October or early November.

However, your slow months may differ depending on what your retail business sells. For example, Valentine’s Day can increase consumer spending at sweet stores, jewellery stores, and florists throughout February.

In addition, retailers can take advantage of significant shopping events in the US, like Memorial Day in May and Labour Day in September, to boost consumer spending during low-peak shopping periods.

This article will explore four key strategies for retail business owners who need to manage financial fluctuations throughout the slow months.

Enhance Promotions and Marketing Efforts

Slow months can be an opportunity to enhance your marketing efforts and focus on selling products that have been popular with your customers during your sales peak. A great way to do this is by enticing new and loyal customers with limited-time offers that create a sense of urgency and trigger the fear of missing out (FOMO).

Retailers could also consider cross-selling techniques to sell products that haven’t performed well during peak sales months. One method includes offering customers additional products to complement their purchase.

For example, if a customer is at your electronics store buying a new smartphone, your employee could offer them a discount on an accompanying phone case, wireless charger, or headphones.

(Image Source: Magestore)

In addition, whilst things are quiet in-store, you can focus more on strengthening your relationships with loyal customers to ensure they return. You can keep them engaged when they aren’t coming in-store by sending email campaigns or newsletters, posting regularly on social media, and reminding them about your loyalty program.

Save During Busy Periods

A sufficient financial safety net can help retailers through the slow months until their cash flow recovers. The best way to create a safety net is to put aside a percentage of your revenue during peak seasons and busy periods.

However, the amount of money you have in your ‘safety net’ depends on many factors, including your personal finances and how many months you experience a decline in sales.

Forecast Your Cash Flow

Before the slow months even come around, retailers should forecast their cash flow and gain a clear picture of their finances. You can do this by analyzing historical data from your in-store point-of-sale (POS) system.

By analyzing data from your POS, you can see when your revenue is likely to dip, and by how much, based on previous financial fluctuations. Forecasting your cash flow enables you to effectively plan how to survive your slow months, whether through reducing expenses, driving promotions, or applying for short-term financing.

Use Slow Seasons Wisely

If your cash flow is under control, slow months are a perfect opportunity to invest time into improving your business.

With fewer customers in-store, you have the time to train or upskill employees, review your business operations to find ways to be more efficient, and work on your business goals for the upcoming year.

In addition, you can also use this quiet period to review and reduce any non-essential expenses. This could include cancelling any tools or services you no longer use or downgrading them to cheaper subscriptions.

Ready To Survive Your Slow Months?

Slow months are a reality for most retail businesses, but that doesn’t mean you can’t handle these financial fluctuations.

You can survive the slow months and set your business up for long-term success by enhancing your promotions and marketing efforts, saving during busy periods, forecasting your cash flow, and using quiet time wisely.