I’ve never been a fan of heavy crowds or massive lines, even less so now that I have small children, so I’m always amazed at the intense public reaction to holiday sales, Black Fridays in particular. Stampedes, elbows to ribs, name-calling and mad dashes to sales displays was never an experience I wished for after indulging in a large turkey meal the night before. So I was interested to see what would happen when retailers shifted the time paradigm and opened their doors Thanksgiving night, while extending sales throughout Friday and the weekend.
Knowing consumer behavior and the modern convenience of online shopping it came as no surprise that sales were low. They increased a small fractioin for most retailers, with a few exceptions like J.C. Penney and Macy’s that saw large crowds, but overall in-store sales were much lower than expected.
Thank goodness for Cyber Mondays. For retailers such as Target, Best Buy, J.C. Penney and Macy’s, targeting holiday shoppers with extended holiday promotions via online helped their holiday sales promotions. Online sales were up with record highs and sales were up 19% compared to last year.
While online shopping is quickly becoming the consumer’s holiday darling, online shopping business models aren’t necessarily profitable. Amazon’s stock is currently trading at $384.49 but it hasn’t shown an increase in profits over the years – perhaps the delivery drones scheduled for 2015 will be their game-changer? It makes me wonder where the market will lead with online and brick-and-mortar retailers engaging in a constant consumer/sales tug of war and various business models showing little to no positive cash flow.
My prediction is that brick-and-mortar retailers will have to not only embrace the online world of sales and shopping, but also invest in technology and marketing to trump their competitors. Smart companies played it best this year with extraordinary deals, great promotions and of course free shipping.
I love a sale like the next person, and like most people I rarely have the time to go shopping. However, our brick-and-mortar retailers provide the economic strength to our local and national economies. While browsing online for deals is convenient, I still enjoy human interaction and the overall shopper’s experience, especially during the holidays.
So now that the sales stampedes have subsided, I might venture out next year and take my time to review the latest fashion trends, see what my children might want for Christmas and even sit down on a mall bench and enjoy a Starbucks Chai Latte.
