An annual retail report from Deloitte has indicated this year retail holiday sales are expected to increase at least by 5 to 5.6% as compared to last year. Deloitte’s Retail and Distribution practice expects total holiday sales (seasonally adjusted and excluding motor vehicles and gasoline) to exceed $1.10 trillion between November and January.
Additionally, Deloitte forecasts a 17 to 22 percent increase in e-commerce sales in 2018 compared with 16.6 percent in 2017. E-commerce sales are expected to reach $128 to $134 billion during the 2018 holiday season.
Here are the key trends that will help the retailers in maximizing the opportunity.
Retailers tend to accelerate their omnichannel strategies in order to leverage from the festive season by encouraging the shoppers to buy across channels. Usually, holiday season witness consumer spending beyond expectation and usually surpass retailer earnings of first half of the year. Hence, holiday sales forecasts are always optimistic.
Buy online ship to store
Festive rush increases the number of orders same-time generates home delivery chaos. To avoid the late delivery retailers should prefer online orders to be shipped at their stores. In fact, they can look at more traditional methods such as buy-online/pick-up-in-store model (BOPS) and little complex concepts such as buy-online/ ship-to-store (BOSS).
A New Approach to Loyalty
Festive season offers numerous shopping to consumers also present a lucrative opportunity to retailers to maximize their business and increase their consumer base. Hence, retailers should tweak their traditional loyalty program with strong push on experiential services and rewards rather than discounts.
Tapping from void
There are many high category which are witnessing the void with no leading player operating in this segment, for example, recent closure of Toys “R”Us’ has generated vacuum in high growth category of toys, leaving the retailers competing for their share. Retailer should look such opportunities across the categories.