EXCLUSIVE: Thomas Sabo increases average transaction value as it combats high street challenges
Proactively looking to boost business amid tough trading conditions, Thomas Sabo has been training its staff to make sure every sale counts.
Talking exclusively to Professional Jeweller, the brand’s UK managing director Jon Crossick explains: “Our average transaction value rose by big double digits last year, and we knew that had to happen because we knew the footfall wasn’t going to come to store.
“For me it’s about increasing the perceived value of what people want to spend in store. Don’t start at the bottom, don’t go cheap, you’ve got to do aim high because footfall is low.”
Looking ahead, Thomas Sabo is hoping to replicate this success with its wholesale partners by encouraging retailer’s that consumers are willing to spend higher than expected amounts on branded goods, and training shop floor staff on how to do this.
“From a wholesale point of view we are going to have to do is re-educate our partners about how they are going to sell,” shares wholesale director, Nick Callegari. “The most important people are actually going to be the people – whether it’s our own retail staff or our wholesale partner staff – who are going to sell our product day in and day out. I think we are going to have to do an extensive piece of training and education to say, ‘This is the new way and new approach, and this is how you can generate higher ATV’s’. You need to sell more stories, sell more complete pieces of jewellery, and really drive that value.”
At Thomas Sabo’s retail outlets the team try to make a ‘£300’ purchase the norm, rather than the exception, but the directors recognise that for a long time retailers have viewed, and perhaps often placed, fashion jewellery in the ‘under £100’ price category. However, across the board Thomas Sabo has noticed its consumers are willing to spend more on items, and as such have been able to introduce higher-end products to ranges with great success.
With the launch of its Generation Charm Club in February, Thomas Sabo is confident this will be a line staff can get their teeth into and enjoy selling to consumers – with an emphasis being placed on encouraging shoppers to play with the pieces and find their own personal style.
Crossick concludes: “We have seen strong double-digit growth from both our sterling silver and watch product lines, and we should also call out consistent strong performance from Rebel at Heart indicating some excellent organic growth and opportunity in the men’s jewellery business. This has allowed us to ensure we have a well-balanced product mix, and whilst Charm Club has remained challenging, recent fashion trends and results suggest that 2018 will be a much stronger year for the category and we are well set to fully benefit from this underlying trend with an incredibly exciting offer. It goes without saying that Thomas Sabo never stands still and we are looking forward to a dynamic 2018 even though we believe overall trading conditions in the UK will remain challenging.”
More Info: Jewelry Magazine Online
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