Beauty Store Business

NOV 2018

Beauty Store Business provides solutions for better retailing! New products, industry news, savvy business moves and important trends affecting both brick-and-mortar and online retailers are included in each issue.

Issue link:

Contents of this Issue


Page 37 of 67

36 November 2018 | There are now several oicial holiday events to pull in consumers (see the calendar on the bottom right or the busiest shopping days o the year). And retailers continue to push the limits. Many launched their holiday promotions on Thanksgiving Day last year–with a ew starting even earlier. Some analysts suspect that monthlong deals will soon supplant speciic sales days. For now, Black Friday is known as the holiday sales season kicko. Surprisingly, even though there's a perception that Black Friday sales have slowed, current statistics show that it's actually still growing. Black Friday, which ollows Thanksgiving Day, is considered the biggest sales day o the year or brick-and- mortar retailers. And it has expanded to include the web; those 24…hours saw $5 billion in online sales alone in 2017. However, or some smaller, indepen- dent retailers, Black Friday may not be the biggest revenue generator o the year. Because these specialty stores thrive on local business, they aren't positioned to compete with the big-ticket items and deep discounts that retail giants use to steal amilies away rom Thanksgiving meals and conjure winding lines o shoppers at midnight. The competitive edge or smaller stores is customer experience or exclusivity– attributes that could be diminished by gigantic discounts. As a result, some small retailers eschew Black Friday or a promotional ocus on Small Business Saturday instead. Small Business Satur- day, which ollows Black Friday, allows them to capitalize on the advantages o exclusivity, in-store experience and commitment to local customers, sans deep discounts. For the retailer on the ence, both are worth exploring. BLACK FRIDAY Brian Field, senior director o global retail consulting or analytics provider Shopper- Trak, says Black Friday will be the largest in-store shopping day o 2018–and the second-largest won't even come close. He explains that part o the reason Black Friday is so successul is that it's part o tradition: Family and riends ly in rom out o town or Thanksgiving. They pass turkey and mashed potatoes around the table and spend time with loved ones. The next day, they continue the merriment as they pile into the car and shop the sales together. More than 174 million Americans shopped both in-store and online last year rom Thanksgiving Day through Black Friday weekend into Cyber Monday. Consumers spent an average o $335, with 75 percent o it going toward gits, according to a survey conducted by the NRF and Prosper Insights and Analytics. Early estimates predicted that almost hal o consumers would shop Black Friday and nearly one-third o those would only or mostly shop in-store. The chie motivation or some was "oers not available during other times o the year," reports Periscope by McKinsey. But with Black Friday online sales growing, and behemoths like Amazon and Walmart taking bigger and bigger slices o the e-commerce sales pie, smaller retailers need to come up with unique strategies or Black Friday. The ollowing are Field's expert tips to help small, independent retailers succeed: 1. Oer online promotions, but make sure your brick-and-mortar promo- tions are enticing enough to get customers into the store. 2. As competition heats up, expect consumers to start researching and even shopping holiday promotions earlier than Black Friday week. 3. Create a mobile strategy. Holiday season mobile purchases continue to grow. Mobile set a new record on Cyber Monday 2017, generating 47.4 percent o site visits and 33.1 percent o online revenue, according to Adobe Analytics. What's more, shopping apps generated higher conversion rates–in some cases three to ive times higher than on the mobile web–according to a Criteo report. 4. Create and market customized promotions that appeal directly to your VIP and loyal customers. 5. Adopt alternatives to deep discounts, such as ree shipping, exclusives and in-store pickup, that usher cus- tomers into your brick and mortar. 6. Finally, don't rely on analyst predictions alone. Look at your store numbers and shopper patterns to determine your best strategy. SMALL BUSINESS SATURDAY "We don't participate in Black Friday; we participate in Small Business Saturday," says Shawn Tavakoli, CEO and owner o Beauty Collection, a Southern Caliornia-based prestige beauty retailer with ive locations and an online store. "We believe that it is counterproductive to spend our time pulling in customers who are looking or a $99 TV or competing with stores that open at midnight. We choose to maximize the Saturday and Sunday ollowing Black Friday." Launched in 2010 by American Express, Small Business Saturday directs consumer dollars to independent local businesses. The eort was certainly a boon to entre- preneurs still eeling the eects o the Great Recession at the time. In 2017, Small Business Saturday drew $12.9 billion in spending rom 108…million shoppers, as reported by CNBC. And no wonder; 70 percent o U.S. consumers were aware o Small Business Saturday going into the event, according to a survey by the National Federation o Inde- pendent Business (NFIB) and American Express. Thirty-ive percent o consumers who took part in Small Business Saturday shopped small retailers' websites. Nearly 60 percent shopped or dined at multiple, local small businesses and almost hal visited new, unamiliar ones. "Small Business Saturday provides people an opportunity to discover and celebrate the variety o small businesses that make their communities thrive," says Elizabeth Rutledge, executive vice president o global advertising and brand management at American Express. "Beyond visiting their avorite go-to spots, shoppers say Small Business Saturday inspires them to visit places they have not been to beore and would not have otherwise tried." Tavakoli adds, "Our consumer is the type who likes to shop locally and support their local businesses. We position our company as a amily-run business, so the Small Business Saturday theme ties into our model, which is experience-driven." It's Brian Field Nov. 24 Black Friday Dec. 23 Super Saturday Dec. 16 Saturday Dec. 26 Tuesday Nov. 25 Small Business Saturday Dec. 22 Friday Dec. 9 Saturday Dec. 2 Saturday Dec. 30 Saturday Dec. 21 Thursday *Data by ShopperTrak 2017's BUSIEST SHOPPING DAYS Let last year's busiest shopping days give you some insight into what to expect or 2018. "We choose to maximize the Saturday and Sunday ollowing Black Friday." —Shawn Tavakoli, CEO and owner, Beauty Collection Shawn Tavakoli

Articles in this issue

Links on this page

Archives of this issue

view archives of Beauty Store Business - NOV 2018