Fall 2007

What are your predictions for retail trends in 2008?

What are your predictions for retail trends in 2008? How can retailers profit from these trends? We are on the cusp of a new year. With retail trends changing at breakneck speed, members from the Gift and Home Trade Association weigh in about what they see on the retail horizon for 2008.

Gail Markert of Markert Group Consulting

Gail Markert of Markert Group Consulting
615.292.7819
MarkertGroupConsulting.com

Global—International looks with a handmade feel are tracking. Beadwork, inlay, carving, hammered metal finishes and any detail that adds character and texture is of interest. Besides the current interest in Moroccan, origins can be Asian, [other] African, South American or tribal in nature.

Green—The environmental movement is gaining traction and the near term focus is on reduced packaging. With Wal-Mart and Target already on board with supplier initiatives, look for key accounts in the gift industry to follow suit.

Big and bold—With intense competition at lower price points, retailers and manufacturers are seeing bright spots of success on larger and unique higher priced items in the $50 to $100 range.

Lynn Armanino of Team Sales

Lynn Armanino of Team Sales
707.746.7100
TeamSales.com

Salt is now about to take on a new meaning as the hidden properties of salt are now being touted. The kitchen stores and better home stores have discovered the superiority of natural salts and are selling all the different types with a passion. There’s flavored salts, Celtic Sea Salt from Brittany, Grey Salt, Himalayan Pink Salt, Jurassic Sea Salt from Utah, Kala Namak (Indian Black Salt), Trapani Sea Salt from Sicily, to name just a few. This movement is just ramping up. There are books on the benefits of salt and the history of salt as well as salt accessories. We’ll definitely see more about salt in 2008.

Marc Rice of Fox Premier Sales

Marc Rice of Fox Premier Sales
800.241.6348
FoxPremierSales.com

If the wholesale trends for the first seven months of 2007 are any indication of what’s to come, 2008 looks to be healthy and prosperous. The prosperity won’t simply happen, though, but will be brought about thanks to the hard work of the industry’s best retailers. Getting a good margin is important now more than ever. If you’re not making the right margins, you’re probably not making the right kind of money. It’s impossible to make the same margins on everything, so retailers must look at their inventory and determine which items can bear more margins.

The selling price is not the only way to adjust the margin of any particular product. Look at your overhead and ways to reduce it. Don’t be afraid to ask your suppliers to work with you by providing deals, discounts, special programs or terms. Be creative. These people want your business and will do what it takes to keep it. Don’t be afraid to go to your landlord and ask for a reduction in rent, or some creative way to pay. Since you’re in this industry, chances are that you’re a person of creativity. Use that creativity to get what you need or want.

Benno Duenkelsbuehler of New Creative and Square Nest

Benno Duenkelsbuehler of New Creative and Square Nest
800.435.1000
NCEGifts.com

There will be more emphasis on the entire value proposition—not just the cheapest price, but all the elements of value: uncompromising quality, compelling designs, functionality, on-time delivery, and at the right price. Pricing pressures from overseas (such as RMB currency valuation, Chinese tax law changes, and labor cost issues) will make it tougher to compete only on price, but those of us who deliver on the entire value equation (including the right price) will do quite well. Product innovation and compelling designs that display and merchandise easily in the store will be important to buyers going after a new consumer generation. The strong trend towards Outdoor Living, combined with a growing respect and a healthy concern for our environment, will only become stronger.

Stacey Bowers of Woodstock Chimes

Stacey Bowers of Woodstock Chimes
845.657.6000
Chimes.com

I would be cautiously conservative in predicting any extensive retail growth in the coming year. However, while retail has been soft across the board, we’ve seen the garden category emerge as a healthy, growing trend for several years now. Based on the current market, I predict that retail will continue to see strong growth in the garden sector in 2008. I’ve heard repeatedly from retailers nationwide that the garden category is healthy and growing. Consumers are increasingly looking for products that bring the comfort and style of indoor decor to their backyards. Vendors, sales agencies and retailers who help the consumer create this outdoor garden experience will be extremely successful in 2008.

Cheryl Karpen of Gently Spoken

Cheryl Karpen of Gently Spoken
845.657.6000
EatYourPeas.com

Having recently returned from the New York and Atlanta gift shows, I’m optimistic. My premier independent specialty retailers told me stories about heroic customer service, the planned re-invention of their stores, their attention to every detail, and the implementation of innovative promotional programs.

I believe complacency will inevitably destroy a business. These entrepreneurs were anything but complacent! They were excited and energized about the opportunities and possibilities the changing market has presented to them. Businesses that show this type of ingenuity and creativity will no doubt survive and thrive in 2008.

The Gift and Home Trade Association is the gift and home industry’s professional trade association, formed to help vendors, sales agencies, industry affiliates and retailers work together to improve the industry. It hosts an annual conference for vendors and sales agencies, and its eight-member Retailer Advisory Board supports independent gift and home retailers through regular seminars at industry trade shows. For more information about the GHTA, call 877.600.4872, email info@ghta.net, or visit GiftandHome.org.