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Retail Association Report Points to Strong Holiday Sales
December 2,
2010 by in UnCategorized
By Home Furnishings Business in economic news on December 3, 2010
Same store sales reports released yesterday by a number of large chain retailers suggest consumer activity is on the rise, likely foreshadowing the strongest holiday shopping season retailers have experienced in recent years, said the
Retail Industry Leaders Association (RILA).
Black Friday sales were up over a year ago as shoppers not only purchased gifts for others, but shopped for themselves as well. Shoppers also got a head start on their shopping this year hitting stores and retail Web sites on Thanksgiving Day and to take advantage of early holiday discounts and promotions. These developments coupled with consumer confidence being at its highest level in five months are an encouraging start for retailers as they enter the holiday season.
Retailers are more optimistic this year than they have been in several years, evidenced by inventory levels higher than a year ago. Retailers have approached the 2010 holiday season eager to attract value-conscious consumers to their stores and earn their business, said RILA President Sandy Kennedy . Retailers will continue to emphasize quality customer service, in-store and online promotions, attractive product assortments and an exceptional shopping experience for customers.
Retailers are utilizing a variety of tactics and applying lessons learned from each of the past two holiday shopping seasons to maximize sales this season.
Inventory: Retailers are carrying more inventory this year compared to last, but by only a small margin. The lessons of recent years have informed planning for this year. In 2008 excess inventory lead to deep discounting and in 2009 low inventory lead to items selling out of stock early. This years inventory is expected to strike a good balance to sufficiently meet consumer demand.
Discounts: Retailers continue to play to the value shoppers in their product assortment and promotional offers. They have found a desirable level in their discounts without undermining profit margins. Retailers are offering great prices and promotions but are offering sensible discounts.
Promotions: In addition to promotions in weekly circulars and offering other conventional forums, retail observers will note an uptick in social media and mobile strategies, used to drive traffic to websites and to entice customers to visit stores. Retailers are also accommodating shoppers by offering a variety of purchase promotions such as layaway and online holiday wish lists.
On-line: Retailers have offered free shipping, special on-line discounts, friends and family discounts, on-line coupons and discount promotions. They have made it possible for consumers to shop on-line and pick up items in the store and return on-line items to the store.
Mobile: Retailers are utilizing mobile to offer sales and promotions and special deals for consumers who follow them on social media sites. Consumers can download mobile apps to check pricing, find out if a product is in-stock, take advantage of promotions and redeem coupons.
Staffing: In anticipation of increased consumer activity a number of retailers have announced they plan to add a significant number of seasonal and temporary workers to assist shoppers and provide them with the best possible shopping experience.