The 5 Biggest Holiday Buying Mistakes — and How to Avoid Them

The holidays can make or break a retailer’s year. It’s the season of opportunity — but also one of the easiest times to make costly buying mistakes. Between chasing trends, managing reorders, and keeping stores (and staff) energized, even experienced buyers can lose focus.

Here are the five most common holiday inventory mistakes retail buyers make — and how to avoid them so you finish the season strong and profitable.

1. Overbuying Based on Optimism Instead of Data

Every holiday season, enthusiasm runs high — and that’s great for morale, but not always for margins. One of the biggest traps buyers fall into is reordering the same look instead of introducing freshness and balance. When you chase last year’s winners too hard, the assortment becomes stale and your customer moves on.

The solution? Let sell-through rates guide you — not instinct. Early sales data is your best indicator of what to reorder and what to leave behind. Always consider lead times and weeks of stock when deciding on replenishment.

A good rule of thumb:
Take your reorder and divide it by 1.2 — that gives you your ideal stock-to-sales ratio and tells you what you need to sell at full price to maintain healthy margins.

Example:
If your reorder is $10,000 at retail, divide by 1.2 — which equals about $8,300. That’s the amount you’ll need to sell at full price to keep your margin in line.

And remember, the later you go in the reorder cycle, the lower your ratio should be. Later buys must sell through quickly — typically within four weeks — so be selective and lean into proven winners only.

2. Not Bringing in Resort or Spring Product Early Enough

Many buyers are so focused on holiday that they forget what comes next. The smart ones use the end of the season to test spring and resort product early — introducing fresh colors, fabrics, and silhouettes before competitors do.

These early deliveries re-energize your sales floor after the holidays and provide valuable insight into what’s resonating for next season.

Pro Tips:
• Introduce small, curated capsules in December or January.
• Watch early sell-through on new color stories or silhouettes to guide future buys.
• Use marketing and social content to transition your customer from “holiday” to “what’s next.”

3. Underestimating the Power of Merchandising and Presentation

Even with the perfect assortment, poor presentation can sink your sales. Great merchandising isn’t just about display — it’s about storytelling. From your windows to your fitting rooms, and from your homepage to your Instagram feed, your presentation defines your brand.

Your storefront is your stage, but your website is your window to the world. Both need to tell the same story — one that’s cohesive, inspiring, and current.

Make it work by:
• Refreshing floor sets weekly to showcase newness and best sellers.
• Coordinating in-store visuals with digital imagery for a seamless experience.
• Training your staff to understand the story behind the merchandise.
• Treating your homepage and social media like your front window — because they are.

4. Waiting Too Long to Take Markdowns

One of the biggest financial missteps is holding off on markdowns until after Christmas. By then, it’s often too late to move slow-selling goods efficiently.

Instead, take targeted markdowns early on items that aren’t performing. This clears space, protects your cash flow, and keeps your store looking fresh throughout the peak season.

Avoid storewide discounts — they attract cherry-pickers who scoop up your best sellers at reduced margins, leaving you stuck with your slowest movers. Instead, focus markdowns where they count.

Markdown Smart:
• Identify slow movers early — don’t wait until they become dead stock.
• Take meaningful reductions to actually move inventory.
• Keep your best sellers full price as long as possible.

5. Forgetting to Make Your Sales Team Part of the Solution

Your sales associates are your front line — and your best inventory managers. When engaged and motivated, they can move slow sellers, elevate the customer experience, and protect your profit margin.

Remember: It’s better to pay them than to take a markdown.

Use spiffs, contests, and recognition to make selling fun and focused. When your team feels valued and involved, they sell smarter — and customers feel it too.

Ideas that work:
• Offer small bonuses or spiffs on key items you need to move.
• Run short contests to keep energy high and engagement fresh.
• Share daily or weekly goals — and celebrate the wins!
• Build a fun, competitive environment that keeps everyone motivated.

Success in holiday buying is about balance — between data and instinct, product and presentation, people and process. Plan smart, stay flexible, and remember that the best buyers are also great storytellers and motivators.