Retailers who think they can stack up a bunch of heavily discounted smart TVs, hoverboards and air fryers on Black Friday and then sit back and be lullabied by the sound of singing cash registers might be in for a surprise this year.
Fresh research from Accenture reveals that price is not the only consideration on shoppers’ minds this season.
The firm’s annual Holiday Shopping Survey, which polled more than 1,500 consumers, showed that while “getting a great deal” was the top consideration for shoppers at 49 percent, 43 percent said they were seeking retailers who offer a variety of available products. Other considerations for where consumers said they will shop on Black Friday include ease of checkout (40 percent), in-store and online presentation (20 percent and 25 percent, respectively) and good customer service (25 percent).
Jill Standish, global lead for Accenture’s Retail industry group, said the race for Black Friday success is on. “Retailers hoping to stand out against their competition need to think beyond price and promotion and keep their eye on the ball across the whole shopping experience,” she told WWD. “From the stock room to the shop floor, the whole retail operation needs to show up. Whether they do or not could make or break the retailer’s holiday shopping season.”
Regarding how much consumers will spend this holiday, Accenture’s survey showed that respondents expect to dole out, on average, $613, which is a 4 percent gain over last year’s $591.
“However, there is still a group of ‘deal seekers’ who love a bargain and are driven by promotions, incentives and savings,” the report’s authors said. “Almost seven in 10 (68 percent) consumers rated price and value among the most important factors in deciding what retailer to buy from, and 30 percent said they will shop as and when they are offered promotions or discounts.”
Accenture said in such a competitive run-up to Black Friday, retailers need to keep track of inventories as not to disappoint shoppers. The report’s authors said, “Personalized deals and promotions targeting consumers can inspire shoppers to spend with a certain retailer, but they need to keep abreast of their product range so deals are not continued once stock levels fall.”
Accenture also encouraged retailers to, “Win every day, not just [on] peak sales and promotional days: Retailers should look beyond the stand-alone sales events such as Black Friday and Cyber Monday and put in place a dynamic sales and marketing plan.” That requires scrutinizing data and analytics “to carefully balance how and when to offer promotions and discounts, while preserving their profit margins,” Accenture said.
The report also suggested retailers “deck the malls” because shoppers “want to enjoy the physical shopping environment. Keeping stores clean and inviting is critical,” the report noted, adding that the survey found “that almost half of holiday shoppers — rising to 53 percent of Gen X consumers — prefer to visit stores so they can see and assess products firsthand.”
“Black Friday weekend shoppers may be laser-focused on bagging a bargain, however, retailers shouldn’t overlook this ‘spend moment’ as an opportunity to engage customers on a deeper level,” Standish said. “In a season that’s particularly tied to nostalgia and tradition, offering shoppers the experience of seeing Santa, of listening to holiday songs as they walk the aisles, or the chance to receive inspiration and advice from a friendly and knowledgeable store associate are just some of the ways to create an experience that keeps them coming back.”
