What is Happening?
Retailers are facing the prospect of a Christmas like no other and many are making plans for a marketing strategy shakeup forced on them by COVID-19.
Consumers can expect to see seasonal marketing far earlier than previous years and campaigns that are likely to be spread over a longer period of time.
Rather than enticing shoppers into stores with holiday sales events, retailers like Walmart and Target recently said they would try to temper the crowds by closing on Thanksgiving Day in the US and putting their best deals online earlier than usual.
What Does it Mean?
Not only are stores having to rethink their approach to the kind of deals that lead to frenzied Black Friday-style crowds. It also seems clear that unemployment rates will impact brands.
With the US jobless rate at 10.2% and 30+ million Americans relying on unemployment benefits, many people’s ability or willingness to spend during the holiday period is likely to be constrained.
🤔 Be Prepared. Sales in November and December have historically been critical vital for retailers and in some cases can account for 20% of annual revenue. While a significant proportion will be made up online, there is also no doubt that there is much uncertainty ahead. Even the ecommerce supply chain will be tested beyond its current capacity.