How Retailers Will Compete for Your Business This Holiday Season
Time is short and we are in the midst of the holiday season, with just a little more than 40 days until the holiday season. We have seen brick and mortar retailers scrambling and the online retailers hustling to get things online. In case, you haven't noticed every year retailers try to push up Christmas, the day after Halloween.
This year I was in a retail store before Halloween and saw the merchandising staff optimizing for the holiday season. We are starting to squeeze out Thanksgiving because many retailers crave the holiday season in hopes that it will put them in the black, especially during these economic times. During this holiday season, you will see that retailers have realized that consumers have become more price-conscious and their marketing will focus more on the value of each dollar that you spend because they realize that's what you’re looking for.
How will retailers, both online and off be vying for your business?
Brick and Mortar Retailers
You will see marketing tactics and strategies in brick and mortar retailers, some that you are familiar with, and others that offer a level of convenience and way to make it easier for you to spend your hard earned dollar. They are focused on creating an urgency for you to complete your holiday shopping with them. A few of the strategies that you will see or have already seen include:
- Open on Thanksgiving. Best Buy, Kmart, Toys R Us, Target, and Macys, to just name a few have announced that they will be open on Thanksgiving Day. Creating the newly named “Grey Thursday.” They are hoping to capture consumers that want to get a jump start on holiday shopping.
- Store Layaway. It's no secret that consumers are experiencing tight budgets and credit crunches. Retailers realized that they needed to do something to drive consumer spending into their stores, so they re-launched their layaway programs. Retailers participating in this marketing tactic includes Sears, Kmart, Toys R Us, TJ Maxx, Marshalls and Burlington Coat Factory.
Online Retailers Also Known as E-Tailers
Online retailers are anticipating their best year yet. Research and studies have shown that more purchases will be made online this year than any other previous year. They've geared up with tools and better merchandising that will make it easier for you to buy and leave you feeling like you got the best value.
Every year online retailers dig a little deeper into their profit margins in order to gain your business and steal it from the brick and mortar. A few of these strategies and tactics include:
- This may be the first year that Cyber Monday loses its value. Many online retailers will be pushing sales out on Thanksgiving Day and continue through Cyber Monday in hopes of capturing consumers before they hit the stores on Black Friday.
- Free shipping or deep discounted shipping
- Online retailers have started to realize that 58 percent of consumers will abandon their online shopping carts because of the price of shipping. This has caused many e-tailers to offer free shipping or deep discounts on shipping. Walmart announced that they will be doing free shipping during the holiday season, this has set the bar for online stores hoping to capture holiday sales and many are struggling with coming up with ways to compete.
- Increase in email marketing campaigns. You may have already noticed, but if not yet be patient it's coming. As a consumer, you could see an increase of 15 — 20 percent in email promotional campaigns during the holidays.
- Mobile marketing and push. Studies have shown that more consumers are purchasing via their smartphone, so you'll see e-commerce retailers rolling out more mobile promotions. They will be pushing exclusive deals to their mobile users. These are deals you won't see on their website or in their emails. They want to capture your attention via mobile, and they are willing to push significant specials to you just to gain the ability to market to you via mobile technology.
- Comparison shopping and reviews. E-tailers have realized that many online shoppers depend highly on online reviews and comparison shopping engines, so you'll be seeing more of your online retailers using these tools to entice you to purchase.
As you can see retailers want you to buy, whether that be in a brick and mortar store or online doesn't matter. They just want you to spend your money with them. You'll see specials this year like you've never seen before. Retailers need to increase their bottom lines. They are depending on this holiday season and they are going all out to gain a percentage of the projected increase in spending this year.
The good news is that as a consumer you have options. Shop smart, research specials and don't buy unless you feel you’re getting value, because if one store won't give you what you are looking for another one will.