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Retailers Will Want a Repeat of Last Year

Retailers Will Want a Repeat of Last Year.

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Retailers Will Want a Repeat of Last Year

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  1. Retailers Will Want a Repeat of Last Year • With the retail holiday shopping season responsible for as much as 40% of many retailers’ annual sales, it’s safe to say that most will welcome the specter of Christmas 2016 to haunt their stores again, as 2016 holiday sales increased 4%, to $658.3 billion. • A 6.5% increase for the week ending December 24 among brick-and-mortar retailers had much to do with the season’s total of +4.0% exceeding the National Retail Federation’s (NRF) forecast of a 3.6% increase. • This late-season surge is an important lesson for media reps and their clients that holiday spending has peaks and valleys. Spending during the extended Thanksgiving weekend was 3.5% less than the same period of 2015, even with strong online sales.

  2. Shopping Malls Are Still in the Holiday-Shopping Game • According to the International Council of Shopping Centers (ICSC) average consumer-spending at shopping malls/centers during the 2016 holiday season for gifts and other holiday-related merchandise was $711, a 16% increase from 2015. • Spending on dining, movies and other entertainment experiences at malls/centers added another 20% to the $711, for a total average consumer expenditure of $897. Gen Xers averaged the most, or $1,000, followed by Baby Boomers, $875, and Millennials, $867. • Brick-and-mortar stores with an online channel accounted for almost 70% of those total consumer expenditures. 61% of consumers who bought merchandise from one of these physical/online combo retailers and picked up their purchase in-store spent more.

  3. E-commerce Is an Equal Partner with Brick-and-Mortar Stores • According to comScore, consumer e-commerce spending during Q4 2016 was $109.3 billion, the largest amount ever from comScore research. Desktop spending was $76.9 billion of the total. • Slice Intelligence’s analysis of 1.7 million online shopping receipts from Nov.1 through Dec. 16, 2016, revealed that Amazon had a 36.9% share, with all other major players in single digits: Best Buy, 3.9%; Target, 2.9%; Walmart, 2.7%; and Macy’s, 2.5%. • Adobe reported that email marketing was responsible for 15% of the $25.59 billion in online sales from Nov. 1 through Nov. 22, or a 14% increase from 2015 – and this period is before the Thanksgiving weekend.

  4. Mobile: Consumers’ Primary Holiday-Shopping Tool • Mobile e-commerce spending during Q4 2016 was $22.7 billion, or 20.8% of the $109.3 billion total above, and driven, no doubt, by the 56% increase in retailers’ mobile notifications during the 2016 holiday season. • Consumers engaged with those 2016 notifications at a higher rate, or 19%, compared to 18% for the 2015 holiday shopping period. There was also an average notification opt-in rate of 41%, compared to 39% for 2015. • According to the Urban Airship study, 84% of retailers’ mobile notifications were highly targeted to consumers’ location, preferences and behaviors; and those highly target notifications resulted in a 129% increase in average engagement.

  5. Holiday Shoppers Are as Different and Unique as Snowflakes • According to the NRF’s 2017 Holiday Shopping Behavior Survey, 44% of respondents said they obtained holiday gift ideas from family and friends; 48% made more impulsive purchases; and 54% utilized retailers’ recommendations. • The survey also revealed that 55% of consumers start their holiday shopping research during October or earlier, but only 33% make purchases then. Most purchases occur during November, 36%, with another 27% during the first two weeks of December. • Another interesting finding from a December 2016 NRF survey is 16.6% of men hadn’t started their holiday shopping by the first week of December, compared to 13.3% of women. A primary reason: men seem to like last-minute shopping.

  6. Today is the First Day of the Holiday Shopping Season • During January 2017, eMarketer’s forecast for US retail sales during the 2017 holiday season was just a 2.0% increase, or half of 2016’s increase, and a 15.8% increase in e-commerce sales, compared to a 17.9% increase during the 2016 season. • Much has changed since January, however, with July retail sales increasing 0.6%, the month with the largest gain during 2017. Plus, US small-business owners’ optimism is the highest in 10 years, at +106 for Q3 2017 in the Gallup US Small Business Index. • According to TWICE’s annual July report, technology and appliance retailers expect the major products for the 2017 holiday season to be large-screen TVs, wireless audio, laptops, gaming, connected home devices, the new iPhone 8 and small appliances.

  7. Advertising Strategies • With men more likely than women to be last-minute shoppers, schedule a specific flight of TV spots during the second week of December that promotes personal shopping assistants being available in-store through the rest of the season to specifically help men. • An “Avoid-the-Rush/Enjoy Your Thanksgiving” promotion highlights merchandise and special offers/discounts just during the two weeks prior to Thanksgiving. Tell customers they can stay home during the Black Friday weekend and enjoy the holiday instead. • Target the earliest holiday shoppers (who are more focused on choosing gifts) with “Gift Planning Weekend” promotions throughout October. Sales staff helps these shoppers find the right gifts and provide them a coupon/discount for when they purchase.

  8. New Media Strategies • The 2017 holiday shopping season is a perfect opportunity for smaller stores to experiment with beacons. Create a display of featured items, place a beacon among them that will connect with shoppers’ smartphones. Show all the featured items, with discounts for each. • Use the data in the middle of page 3 of the Profiler to show advertisers that all generations use TV’s digital channel for holiday gift inspiration. Work with your digital specialist to create a page on your station’s Website featuring gift ideas from advertisers who buy TV time. • According to research from Yes Lifestyle Marketing, the Tuesday before Black Friday is the best day to distribute an email campaign. Include sneak peeks of featured items for Black Friday and allow recipients to buy at those prices if they order their purchases before Friday.

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