The holiday season represents a large chunk of sales for retailers. However they don’t come without proper planning and service. Many American will be looking for deals throughout the holiday season. Many will be shopping online and in store. Some companies have to be fully prepared with proper pricing strategies and supply chains in order to fulfill consumer demand. For instance Amazon plans on hiring 80,000 workers this holiday season (Bensinger). They also have been studying traffic trends related to their price changes on their website. With the growth in ecommerce, many customers are constantly scanning sites for deals, whether at work or at home. For example, in October alone, Amazon changed the price of the Jawbone Up24 20 times. This allowed many customers to buy at a low price while others had to pay more. Amazon also is giving early holiday deals to their Prime members (Banjo). Sears had the same product listed on their website, but the changes in prices only happened every Tuesday and Friday (Banjo).
Last year’s shipping crisis has led to many consumers trying to shop and find deals earlier, and retailers have tried to do the same in order to spread out the traffic of shipping orders. Some online retailers are resorting to new strategies and tricks in order to provide customers with the best deal possible. Retailers put a KitchenAid Artisan stand mixer on sale; but customers were not able to see the price until they added it to their online cart. Some retailers are also trying to create online door busters, where only a certain number of products are sold on a first come first serve basis (Banjo). Walmart is trying to come up with new strategies in order to edge out competitors in a price war. Walmart is thinking of extending their price match policy to online shopping as well. Meaning if someone finds a low price on Amazon, Walmart will also reduce its own price. In an effort to boost online sales, Target announced that they would remove shipping fees for online orders from October 22nd to December 22nd (Banjo).
It’s very interesting to see all the different strategies retailers are trying to implement. I find it intriguing that they are broadening the discount window into October and November. I really like how retailers have had to change their online strategy over the past couple of years. I for one will definitely be on the lookout for these deals this holiday season.
Do you shop a lot during holiday season? Do some of these strategies seem appealing to you?
Do you think many of these strategies will help some retailers gain an edge over one another?
Can you think of any other strategies/ management techniques retailers use in order to strengthen holiday sales?