It is Official – There Will Be No Black Friday Rush Or Christmas Retail Bonanza This Year
The statistics are in, the large retail chains are reducing inventories by as much as 20% from their typical high level during the Christmas quarter. Of course this automatically means they will sell approximately 10-15% less than last year, as they have predetermined what they can possibly sell based on their available inventory.
This could mean a bonanzaBONANZAJP for the small store who inventoried a little more, and has a broader selection and will attract some additional Christmas shopping when the major stores run out of inventory before the season ends. This entitles you to higher prices.
It also appears that Black Friday will no longer be the event it has been in the past, as large chains are beginning Friday sales a month in advance, announcing through mailers, email, ads, that they are having Black Friday sales every Friday for the entire month of November. Problem is, it will take the urge out of the consumer to attack on the real Black Friday and experience the best one time sales. It has built a furor of sales and now with their attempt to start earlier and sell more with four Black Fridays.
I bet the gross revenue will be lower and the net profit will also be lower, the excitement and the short window of opportunity has been watered down so there are many chances to buy at low prices so no hurry, besides the closer we get to Christmas the greater the discount is expected to be. How to ruin a great sales spike. Atta boys….
In fact the best guess is that there will be a significant number of last minute shoppers taking advantage of last minute sales, the lowest pricing of all. In short, this will be a tough fourth quarter and will require clear strategy and impeccable implementation to maximize your situation in a declining market.
Figure out what your plan will be and execute with precision, carefully, prudently but maximizing your opportunity. There will be increased sales activity, you must figure out how to get the most you can.