Know-How Exchange : Strategy

Find out what the customers want and need. The UK has had a tough time with the economic recession, whilst social responsibility programmes are admirable and necessary, at the end of the day your customers will only come to your store if you meet their needs and wants. I agree with the pricing strategy, however the differentiation strategy is equally important i.e. what can you offer that is different to everyone else. A very simple reward system where they get something back when they spend in your store can be attractive, as long as whatever you give back is something they want/need. People going through a tough recession often do away with holidays and luxuries. They also want to know they are getting value for money. Gift vouchers are also good promotional tools because if you reward them with a gift voucher they will inevitably spend more than the value of that gift voucher when they redeem it.
Good luck, Xmas is a tough time for retailers to compete.

I agree with Karen about the community contributions - that always seems to go over well.

I also like to be heavy on customer service and offer many "free" services that will make life easier for your customer. (Especially since Christmas is such a hectic time, people appreciate anything extra you do.) Such as - free gift wrapping, delivery, personal shoppers, etc. You could even have customers send in a list of what they're looking for and a sales person can have options ready for them when they arrive so that their process is quick and easy. You'll likely gain brand advocates out of this process as well.

Good luck!
Claire