Black Friday and Cyber Monday aren’t the only holiday shopping days when retailers have to compete for prices. The National Retail Association expects a 3.9 percent increase in sales across the board, ushering in some new trends and strategies to accommodate rising demand.
Below are five key trends to consider in this shifting season.
1. Discounts Have Grown in Importance
A survey from Accenture has detailed that consumers are increasing the importance of discounts in making a purchase. 62 percent state that it will take a discount of 30 percent or more to persuade them to make a purchase. Even more, 39 percent of consumers said they would return an item bought and re-buy it if they later found it at a better price.
Just look at retailer web pages to get a sense of the constant competition they pose. View Macy’s sales to get an idea of the importance of discounts and savings for Cyber Monday and holiday sales. The offerings include dress shirts, ties, polos, and winter-ready items, all complemented by severe discounts, such as free beauty gifts that accompany fragrance purchases.
2. Online Spending Gains Major Ground
Shop.org reports that the number of ecommerce sales (online shopping) is expected to rise 15 percent overall to approximately $82 billion. Companies are increasing their online presence through Cyber Monday deals, and increased use of social media is adding that word-of-mouth aspect more than ever, further details Shop.org.
3. Free Shipping
American Express has announced free two-day shipping for anyone making purchases with the card through any of about 80 online partners. These include Toys R Us, Brooks Brothers, Calvin Klein, PetSmart and GNC, according to ShopRunner, the AE affiliate. This is a particular perk for late shoppers with the 2-day shipping feature, also compounded alongside American Express’s two-click buying convenience.
ComScore reports that 55 percent of buyers will abandon and close their online webcart because of higher than expected shipping costs.
4. Layaway Returns to Popularity
The Charlotte Observer recalls that layaway has been largely abandoned in recent years in favor of credit cards. But the credit crunch and recession, no-credit involved layaway is gaining major prominence. Toys R Us is offering free layaway through December 16th. Generally, a customer is expected to pay a small fee, traditionally $5-10. The item is held on reserve for you, and you obtain the item when the entirety of the payment is cleared.
5. Bridging the Gap Between Physical Stores and the Web: Click and Collect
The “Click and Collect” is becoming a viable alternative to both traditional bricks-and-mortar purchases and the other extreme of strictly online buying. Retail Week documents that the option allows customers to order items online, but pick them up at a retail location. It has benefits because it avoids many of the shipping fees associated with online purchases, but it also allows buyers to obtain items at their convenience through traditionally accepted physical locations. Furthermore, many items are not ideal for online, such as groceries, big box items or pre-made foods.
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