Yesterday, one of my colleagues told me an interesting retail industry factoid: most Thai supermarkets tend to triple their average monthly sales in the month of December. In other words, just over 21% of a supermarket’s annual sales are generated in the last month of the year. I could imagine that many department and specialty stores generating that kind of sales spike (typically 25%+ of annual sales), and definitely the toy sector, which generates upwards of 70-75% of annual revenues during the Christmas season. But groceries? It didn’t make sense to me.
And then it hit me: holiday gift baskets. Thais have a tradition of sending out supermarket holiday gift baskets to preferred clients, family members, and elders. These tend to consist of consumer products hand-arranged & assembled (much like a floral bouquet) in a woven wicker basket and then shrink wrapped for delivery. Prices can range from about Baht 1,000 (US$25) for an eclectic mix of goodies such as juice, talcum powder, and non-dairy creamer, to a more wallet-busting Baht 12,000 (US$300) for tony items like Johnny Walker Blue and other high-priced, imported consumables.
Cynically speaking, gift baskets are such a terrific scam for grocers, both figuratively and in some cases literally. Figuratively because even after accounting for the cost of the basket and the labor used to assemble these things, the retail mark-up on these baskets are fantastic, and I’m hoping my company sells enough of these things to goose our annual bonuses (insert dripping sarcasm here, but not too much: Papa needs a brand-new plasma screen!). Literally because some less-than-reputable supermarkets (not my company!) have in the past used gift baskets as a means of clearing out excess inventory, mostly less-popular unsalable items and in many cases expired and rotten merchandise. Not only do these supermarkets have a way to dump crap inventory before the close of the fiscal year, but they get to book sales of otherwise unsalable merchandise at a significant premium to non-holiday prices rather than taking the write-off. Buddha bless the entrepreneurial spirit and creative accounting!
If you do partake in this ritual, my advice would be to hand-pick the merchandise off the shelves yourself (checking the sell-by dates first hand) and watch the supermarket employee assemble and wrap the basket. A better suggestion would be just to buy a bottle of Blue Label and get plastered with your client/friend/elder and use the savings for a pair of Montecristos.
Incidentally, can anyone tell me if supermarket gift baskets are a regular part of holiday gift giving in other countries around the world? I don’t seem to recall this going on in the United States, though I’m surprised that the large supermarket chains and consumer product companies haven’t tried to start a similar tradition stateside (they could take a lesson from the greeting card companies and confectioners with regards to hawking products on Easter, Valentine’s day, and Mother’s Day).