In October, the National Retail Federation predicted a 4.1% growth in sales in November and December, compared to one year ago, catapulting total spending this year to $616.9 billion. According to the report, that’s more than 19% of retailers’ total earnings for the year.
Much of this increase stems not just from a healthier economy and more discretionary spending; retailers play a role too by stretching out Black Friday deals throughout the entire month of November.
The holiday shopping season seems to creep forward each year, and I can’t help but think the retailers and e-tailers are shooting themselves in the foot. The original concept of Black Friday and Cyber Monday was to ignite the seasonal shopping spark, but if that spark ignites at Halloween as it has in 2014, I predict we’re headed for deal fatigue.
As you plan your holiday promotions, keep that factor in mind. You want to feed your sales pipeline but not get caught up in the endless drone.
I predict early specials will create traffic, but in the latter part of the shopping season, customers won’t respond as well. Strike early (because that’s when folks will start buying) but make sure you’re focused on the value of your brand overall. I would recommend bundles over discounts too.