Atomic Penny

Retail sales constitute 70 percent of all economic activity in the United States. With the holiday season upon us and the economy toggling between improvement and downturn, I wanted to take a look at a recent survey from the National Retail Federation. It states that U.S. consumers plan to spend 3.2 percent less than last year on their holiday shopping (an average of $682.74 per person from $705.01). So what can retailers do to capture their share of seasonal spending?

In 2008, the general public saw astronomical sales during the holidays. That was mostly due to retailers whose overstocked inventory met a lack of demand. This season, retailers will most definitely cut back on product and I predict we won’t see as many “80% Off!” signs in store fronts. So consider marketing like it is still 2008. But of course, do it smartly and by the numbers:

“39 percent of Americans will begin their holiday shopping before Halloween. People will also be shopping for sales more often (55.0%), using more coupons (41.7%) and putting up last year’s decorations (34.0%). Many Americans will also make changes in gift-giving, planning to buy more practical gifts (36.0%), buying a joint gift for kids or parents (17.3%), and making more gifts (16.7%). Additionally, more than one-fourth of Americans (28.6%) say the economy is forcing them to travel less or not at all for the holidays. [Lastly], 55.2 percent of adults would like to receive a gift card this holiday season, with clothing (48.8%), books and DVDs (48.6%) and electronics (33.2%) among other popular choices.”

When you consider these figures as customer challenges with which you have the opportunity to leverage, then you are on the right track. Solve your customers’ problems, and you’ll be sure to have a very merry Christmas.

POWER ON

Mark

***I’m conducting my own holiday marketing survey at LinkedIn (http://polls.linkedin.com/p/66460/vhdyn). Please feel free to participate as well as connect with me at mark@atomicpenny.com.