With peak shopping season fast approaching, US retailers are optimistic, with most expecting a revenue increase of 28.7 per cent on 2018, according to a recent survey by Yieldify.
Encompassing major shopping events like Black Friday, Cyber Monday and the six-week lead-up to Christmas, the upcoming peak retail period is expected to draw a line under what has otherwise been a turbulent retail year.
Here’s an insight into what retailers expect for the holiday shopping season in Quarter 4, 2019.
Yieldify notes retailers are overwhelmingly positive about the period ahead, with many already implementing their marketing plans for discounts, deals and special items.
Their findings indicate:
- US retailers expect an average revenue increase of 29 per cent for Black Friday
- Retailers are tipping a 22 per cent increase on average revenue for Cyber Monday
- An increase in revenue of 28.6 per cent is anticipated for the holiday shopping season as a whole
- Over two-thirds (72.9 per cent) said they expect a revenue increase of 10 per cent or more on year on-year for the holiday season
Taking place on November 29, this year’s Black Friday is expected to kick the peak retail period off with a bang.
It is also no longer seen as a one-day sales event, with 85 per cent of retailers planning discounts and deals over an extended period.
This year 92.8 per cent of retailers are expected to take part in the Black Friday retail bonanza, offering an average discount of 37.3 per cent.
- 50.6 per cent of retailers will be offering Black Friday discounts across all items
- 32.2 per cent will be offering limited discounting
- 8.4 per cent will offer a promotion but no discount
- 2.5 per cent will be taking part in another way
- 6.3 per cent indicated they will not be participating
Meanwhile, the report notes fashion brands are the most likely to discount, and multi-channel retailers are more likely to take part overall.
“Pureplay e-commerce brands are the most likely to skip Black Friday, with more than 1 in 5 (22 per cent) choosing to give it a miss,” Yieldify says.
“Only 65 per cent of e-commerce pureplays who are participating in Black Friday will discount, versus 85 per cent of multichannel retailers.”
In 2019, Cyber Monday will be held on December 2, and 91.8 per cent of retailers are planning to participate, offering an average discount of 32.6 per cent.
- 44.4 per cent of retailers will be offering discounts across all items
- 35.5 per cent will be offering limited discounting
- 9.4 per cent will offer a promotion but no discount
- 1.5 per cent will be taking part in another way
- 9.2 per cent have indicated they will not be participating
Holiday shopping season
The high-revenue holiday shopping season is an event few retailers look likely to miss with 98.3 per cent of survey respondents indicating they were planning to take part, offering an average discount of 32 per cent.
- 57.6 per cent of retailers will be offering discounts across all items
- 27.3 per cent will be offering limited discounting
- 11.1 per cent will offer a promotion but no discount
- 2.2 per cent will be taking part in another way
- Just 1.7 per cent have indicated they will not be participating
“One of the most interesting points to note here is that the highest levels of discount activity come after Black Friday, during the holiday shopping season,” Yieldify notes.
“85 per cent are planning to offer some money off, and almost 60 per cent plan to discount across all items.”
Let the preparations begin
The report goes on to explain many retailers have already begun to prepare for the holiday season ahead.
As of early August, 77 per cent had begun creating their marketing campaigns. In fact, more than half of US marketers (52.5 per cent) and multi-channel retailers (52.6 per cent) started way back in July.
Meanwhile, 12.4 per cent will commence work on their campaigns in September, 6.4 per cent will begin in October, and 1.7 per cent will start in November.
And when it comes to launch date, August 27 is the approximate date most retailers intend to launch their Black Friday and Cyber Monday campaigns, while promotions for the holiday season are expected to commence on September 9, 109.5 days before Christmas.