Optimizing for the Holiday Shopping Season

Retailers are preparing for one of the most challenging holiday shopping periods in a long time. With buying behavior shifting and online sales rising, the shopping season is looking to be quite different this year. Businesses need to begin planning even earlier and prioritizing efforts to convert unusual holiday shopping patterns into record-breaking growth. 

This makes the holiday season especially interesting for the physical retailers. Businesses are creating a safe shopping environment for customers and employees – social distancing, shorter store opening times, and ramped up hygiene protocols, but also ongoing inventory challenges.  

In July, Walmart announced that it has decided to close on Thanksgiving, ending a long tradition of kicking off their Black Friday sales on the holiday. "We know this has been a trying year, and our associates have stepped up. We hope they will enjoy a special Thanksgiving Day at home with their loved ones," John Furner, the president and CEO of Walmart US, said in a statement. "We are certainly thankful to our people for all of their efforts." 

Last week, Home Depot said it will extend Black Friday specials to nearly two months, feature Pinterest-inspired homemade gift ideas, and put promotions on its mobile app first. They will also have free shipping on over 1 million items, providing consumers more flexibility with in-store pick-up or home delivery options. "Starting with reinventing Black Friday, we’re improving the shopping experience, with your safety and well-being as our priority," the company wrote on its website. "Say goodbye to one day of frenzied shopping and enjoy Black Friday savings all season long without the stress and crowds." 

Other retailers have also followed the same path and said they will extend the season and have a similar strategy in place for the holidays this year. Best Buy and Target plan to start promotions earlier than in previous years. More and more consumers are turning to convenient, contactless same-day services like drive up, order Pickup and same-day delivery with Shipt, Target mentions on the press release. “This holiday season, we’re doubling down, making 20,000 more gifts, essentials and everything in between available via our popular same-day services.” For reference, Shipt grew 278 percent in the first quarter, showing the level of adoption these new options are having. 

Curbside pickup could be another secret weapon for many retailers this year, as many implemented this during the pandemic but didn't offer this service last holiday season. The speed and the safety of curbside pickup could be a game changer for many retailers this holiday season. 

This month, Walmart unveiled a new online tool called Walmart Wonder Lab, which allows kids access into a choice-driven experience where they can unbox, test, and play with this holiday season’s hottest toys without leaving their home.  

In 2019, U.S. online holiday sales reached $135.35 billion and average order value reached $152.95. During Cyber Week 2019, online sales via mobile devices grew 46 percent from the previous year. Smartphones enable not only convenient browsing, but also buying, and tracking orders, and are steadily progressing into a prime shopping tool for consumers across the United States during the holiday season and beyond. 

Competition for buyer attention has never been higher. Brands that can deliver smooth and highly personalized shopping experiences outshine their competition in the digital space. Merchants will need to be more targeted and creative in their approach during the holidays to get customers to spend with them this year. Beyond their online presence, brands need to create meaningful connections, offer personalized user experiences, and deliver convenience to compete during the busiest season of the year.