Holiday shopping: NOW it gets interesting

Hopefully by now we all accept that Black Friday weekend performance is pretty meaningless for most retailers. And even though we are now a week past Cyber Monday, most of the action still lies in the days and weeks ahead.

Bear in mind, most retailers still have roughly 2/3 of their holiday profits to come.

If retailers performance in November tells us anything it is that retailers with winning value propositions continue to win and those that are stuck in a sea of sameness–and that have failed to invest in a compelling omni-channel experience–continue to lose share. Their only weapon remains price. Good luck with that.

In the coming days, the game of chicken that exists between consumers and retailers will begin to accelerate. Despite somewhat improving economics conditions, the majority of consumers still engage in “surgical shopping”–that is they are more focused on needs, then wants, with an intense focus on value. Most consumers understand that the deals get better as retailers get more desperate.

So despite the hype around Black Friday and Cyber Monday, there will be plenty of promotional craziness ahead and even with decent sales, profits may not be so robust.

Stay tuned.

 

 

 

 

 

One thought on “Holiday shopping: NOW it gets interesting

  1. Yesterday I spent the afternoon at the luxury Tyson’s Galleria down in Tyson’s Corner, Virginia. Know this is totally anecdotal reading, but when I arrived at 2 pm no traffic jams, was able to find a parking space fairly close to the door with no problem, and mall traffic was underwhelming, at best. The busiest store was the Starbucks outlet in the center of the mall. Made me fearful for the retailers there. Luxury-leaning shoppers with MIA in one of the most affluent counties in the country.

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