Retail trends are tricky
When do you get in? When do you get out? What do you do if you choose poorly?
by Adrea Gibbs
Remember when the Pet Rock came out in the 1970s? Everyone had to have one, and they could be found everywhere from attractions to grocery stores and just about any place in between. But, as with anything, the fad cooled and retailers were left with, literally, a pile of rocks. For those who got in and got out, it was a boon. For those who took notice too late in the game, it was bad news.
Quarterly, seasonally, annually—it happens to every buyer of retail. Vendors come in with the latest and greatest, often recommending the “new thing” to help keep everyone ahead of the merchandise curve. The challenge is trying to assess how those new, potentially time-sensitive products may play out in your venue. Determining what makes the most sense can be a gamble when additional factors include location demographics, seasonality, and cost of goods.
 By definition, a “trend,” according to Dictionary.com, is “style; vogue: (for example) the new trend in women’s apparel.” In the attractions industry, a trend in retail can have numerous benefits; providing an item in line with current interests, a potential per cap spending increase, and presenting a visual illustration that the location is “up with the times.” On the flip side, the same positives can prove to be a negative.
One of the current trends in fashion is the “burn out” shirt, which has undergone a distressing process to create a weathered/worn look leaving a part of the fabric sheer. There are many apparel vendors who are currently carrying this product, and you will find it on the racks of many popular retail chains and smaller boutiques. The design appeals to customers while still reinforcing the attraction’s branding.
Something this hot obviously could be big for your facility, but before embarking on a trend—fashion or otherwise— take into consideration a few questions:
Does this product match the demographics of your guests and their interests? If your current attendees are teens and young adults, a product such as the “burn out” T-shirt might prove ideal. However, if you cater to a preschool crowd, it might not be the best choice.
Can the product be branded? Does it need to be? Do your present retail objectives include bringing more branded merchandise in, or do you need to diversify with non-branded items? Finding how the product will enhance your present mix will assist you in deciding if it is a good match for your location.
 Would this replace or augment current stock? If you are growing your inventory, does this fit into your overall plan for pricing, age targets, and gender breakdowns, or does it replace something that has itself gone out of style or simply isn’t selling? If you are looking to expand your retail options, something trendier may be a good way to go.
What kind of quantity determines a minimum order or leverages a price break? Some vendors will allow you to purchase in low volume, especially with a newer product, so you can test the waters. However, you need to look at where their price breaks are if testing out a product works within your overall buying strategy. If you do go with a smaller quantity, and it winds up being a strong seller for you, you also need to know what might be the turnaround time on stock replacement. Being able to replace popular—particularly trend based— items quickly is critical.
Is the price point workable and can you create a markup that falls into alignment with your other products and still offers you a good return on investment? Does the cost of goods make sense in your market? You need to be able to mark the product up enough to make sense for your bottom line and be a viable seller for your demographic.
And, possibly most important…
 If it doesn’t sell, what is your plan to recoup your loss? If your product does not sell, how you can move it? Some aspects to consider are price reduction, bundling with another product to make it more enticing, selling it to team members at a special rate, or donating it to a nonprofit. Regardless of the route you choose, have a plan in place to liquidate the product.
Each time you are looking for new product you will be presented with a variety of options ranging from the most basic to what is in vogue. Even taking into account the latest fashion colors can be a difficult decision. When you only have so much in your budget, you need to make careful decisions that make the most sense for your attraction. Still, given all the opportunity to analyze your in-house data, one factor still remains—that gut instinct as to whether or not it will sell. No one wants to be left with last year’s pet rock.
Presently the general manager of Dolphin Quest Hawaii, Adrea Gibbs has worked extensively as a consultant in entertainment and merchandise throughout the United States, Europe, and Asia. She is active on both the merchandising and hall of fame committees for IAAPA.
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