As the summer months roll by, savvy retailers are already gearing up for the upcoming holiday shopping season. To gain insight into what retailers are doing to prepare for the 2024 holidays, Digital Commerce 360 conducted a survey of 23 online retailers. These retailers vary in annual online revenues, ranging from $1 million to over $100 million, and have differing numbers of employees, from 1 to over 1,000.
Inventory management is a key focus for retailers as they gear up for the holiday season. While more than half of the respondents feel confident about their inventory levels, others are uncertain due to dependencies on the supply chain. The uncertainty surrounding inventory positions highlights the importance of staying agile and adaptable as the holiday season approaches.
Anticipating consumer behavior is another crucial aspect of holiday preparation for retailers. The survey revealed that retailers are expecting consumers to be more cautious with their spending due to high inflation rates. Additionally, consumers are likely to comparison shop more, leading to lower conversion rates. The rise of marketplace shopping and the impact of events like Prime Day in July are also expected to influence consumer behavior during the holiday season.
When it comes to sales projections, the majority of respondents are optimistic about growth during the holiday season. While some expect modest growth, others are more bullish, anticipating significant increases in sales. However, a small percentage of retailers foresee a decrease in sales, highlighting the need for flexibility and contingency planning.
Challenges such as rising inflation, increasing costs, and meeting profitability goals are top concerns for retailers as they prepare for the holiday season. Managing marketing budgets and navigating supply chain disruptions are also key challenges that retailers are bracing for.
In terms of staffing, retailers are gearing up to hire additional employees for fulfillment and customer service roles. However, finding and retaining holiday workers may prove to be a challenge, prompting some retailers to consider outsourcing fulfillment work to third-party logistics companies.
Free shipping strategies vary among retailers, with some offering it with conditions such as minimum spending thresholds or specific categories. Others plan to offer free shipping only during promotional periods or to loyalty program members. Returns policies are also being adjusted, with many retailers extending return deadlines to accommodate holiday shoppers.
Competing with e-commerce giant Amazon is a common concern for retailers, with many planning to leverage loyalty programs and competitive pricing to attract customers. Enhancing the customer experience, offering unique product selections, and improving omnichannel features are also strategies that retailers are employing to stand out in a crowded marketplace.
As retailers gear up for the 2024 holiday shopping season, it is clear that agility, adaptability, and a customer-centric approach are key to success. By staying informed about consumer trends, managing inventory effectively, and implementing strategic marketing and staffing plans, retailers can position themselves for a successful holiday season.
