Why wait until November to start planning for the holiday season? To capture higher margins and bring more customers into the store during the holiday rush, store owners have little room for error. The final sales quarter of the year will be here in a few weeks, and few stores can afford to miss early season sales or deal with upset customers when products are out of stock. In this case, the early bird gets the worm.

• S. hardware stores have an average net profit margin of 6.2% (35% gross margin)
• Customers expect stores to be fully stocked by late October
• Product costs have risen for two-thirds of retailers in 2026

Industry data indicates that 41% of retailers had higher year-over-year sales in Q5 of last year. However, with a 0.0% growth rate, transaction counts were flat. While shoppers are buying when they get to the store, it will take extra effort on your part to motivate them to choose your store as their destination.

Spreading the Word
When operating a business with a small staff, it can take longer to get everything done. However, promoting store events and staying connected with customers are essential to the store’s success, especially during the holidays. Keeping your best customers updated about seasonal specials, gift suggestions, and charitable activities motivates them to visit the store. Consider using e-mail, social media, or a combination of communication platforms to increase your business’s visibility.

Plan to Have Sufficient Inventory
Like others in the industry, the supply chain is under immense pressure to manage costs and meet growing customer demand. Retailers who order early are better positioned to receive the products they need at lower costs than owners who wait until the last minute. One sure way to upset customers is to advertise products that used to be on shelves that are now empty. Be prepared to do business by greeting them with a smile and full shelves.

• Place orders by early Fall
• Negotiate promotional pricing or marketing support
• Partner with two or more suppliers for high-demand products
• Ask for visual merchandising support (POP signage, displays, kiosks)

Make it Easy for Customers to Buy
Few customers like navigating through a maze to locate the products they came to buy. Holiday-themed displays and bins make it easy for shoppers to focus and quickly select giftable merchandise. Seventy-eight percent of customers are aged 35-64. They want to buy gifts and products that solve specific problems.

• Tools under $25, stocking stuffers, and DIY kits (woodworking, basic tool set, toolboxes, home décor, compact tools
• Pet accessories, toys, and treats
• Winterization Zone

Do Something Special for Shoppers
The little things you do for customers add up to a better shopping experience. During the holiday season, people often feel stressed and wish they had more time to get all their shopping done. Stores that stay open late and on weekends are better positioned to serve people who can only shop after work and last-minute shoppers. Very few stores offer gift wrapping. Many customers would be delighted to have holiday purchases professionally wrapped before leaving the store. Instead of having shoppers stand in long lines for small purchases, create a fast checkout lane so they can exit quickly.

Carve out Time for Fun and Relaxation
A great way to familiarize customers with your business is to hold fun activities that help them complete their gift-giving list. Letting customers make ornaments, join DIY workshops, and do craft projects can build relationships that extend beyond the holiday season. Offering hot chocolate or seasonal beverages makes events more enjoyable.

Loyal Customers Count
Loyal customers are an asset. Like most people, they want quality products at affordable prices. Since 65% of buyers are repeat customers, their preferences should guide your holiday product and seasonal assortments. Use data readily available through your POS system to develop targeted communications and identify new sales opportunities.

Owners who think it’s too early to plan for the holiday rush should remember that big-box competitors are fully stocked and ready to go. Back-to-school merchandise is quickly becoming a distant memory and will soon be replaced by Halloween assortments. However, Christmas and the holiday season are the biggest deals of them all. Many stores generate 30% to 40% of their annual revenue from October to December—so get ready.