Although slashed prices have been a hallmark of the holidays over the past few years, promotional and inventory strategies will be more refined and disciplined this year, according to a survey released today by Hay Group, a global management consultancy.
Retailers have successfully spread out promotions to trigger more sales throughout the season, and 31 percent report that they will start promotions even earlier this year. While 58 percent of retailers will wait until November to begin their promotion blitz, 42 percent will start in October – well before Black Friday. Promotional plans indicate retailers have more confidence in the consumer. Few retailers (18 percent) feel pressure to match online-only prices, and 50 percent of retailers say they are looking to cut back on discounting overall this year. Just 8 percent will staff stores to be open 24 hours on select dates throughout the holidays.
“All things considered, retailers are on the ‘nice list’ this year.” said Maryam Morse, National Reward Practice Leader of Hay Group’s Retail practice. “One of the lessons learned during the downturn was that stores need to be able to respond more quickly to shifting market conditions and consumer preferences. Now, inventory is better managed, the supply chain is more effective and retailers have a clear plan for markdowns. With sales improving, retailers are placing more emphasis on retaining and rewarding employees and identifying career paths for top talent.”
Three fourths of 14 major retailers surveyed, including Ann Inc., Hot Topic, Inc., Chico’s FAS, Inc. and David’s Bridal, forecast an increase in holiday sales this year. While 57 percent of retailers plan to hire seasonal workers at the same level as 2011, 36 percent say they will be hiring more, a shift from 2011 when just 10 percent planned to hire more seasonal workers than the year prior.
