Retailers should prepare for the shortened holiday season
The holiday retail season may not be here, but prep-time has for many companies. Amazon recently announced that it will be hiring 70,000 full-time seasonal jobs. This 40 percent increase from last year may indicate a level of confidence in the approaching shopping months, particularly since the company also believes thousands of employees will remain on as permanent staff members.
However, merchants should also be aware that this will be one of the shortest holiday seasons in recent years. Black Friday falls on Nov. 29, and retailers will only have a 25-day window to drive sales, unlike the 31-day long season from 2012. These dates also give consumers one less weekend – four instead of five- to shop than usual. This will result in some stores offering promotions earlier in November or potentially October, and industry professionals should remain aware of various markets to capitalize on less well-defined sales dates. Inventory and sales staff management may have to be adjusted because of this.
Sales up, foot traffic down
According to a study from analytics firm ShopperTrak, retailers should also expect a 1.4 percent decrease in foot traffic from 2012. However, sales are actually expected to rise by 2.4 percent from the same period, with the apparel category anticipated to experience an overall 2.8 percent increase in sales and only a 1.0 percent reduction in customer visits. Big-ticket items may be more central to stores' success this year, or a higher volume of purchases from a smaller segment of consumers.
Due to the disparity between the foot traffic and sales anticipated at brick-and-mortar stores, along with a shortened holiday sales season, merchants should begin adjusting their usual strategies to account for these factors. The fewer number of shopping weekends could lead to longer lines and more last-minute purchases. A streamlined point of sale system can tackle these obstacles and ensure that stores operate smoothly from customer to customer. Even as the total number of consumers decreases, the amount of patrons shopping at once may increase drastically due to the compacted time between Black Friday and Christmas.
Amazon's move may also indicate a greater level of eCommerce sales this year, so merchants should ensure that their eCommerce software is up to the task of handling a greater volume of customers. This will be another item that retailers should consider while planning out their store operations for the coming months.
