Black Friday has been a constant feature in the postmortem of the 2014 UK holiday sales season. It has gradually extended its influence across the Atlantic over the years; despite having no cultural significance outside of the US (Black Friday is a sales day that traditionally follows the US Thanksgiving holiday). Retailers in France, Germany and Spain tested the waters with Black Friday promotions in 2014. But it was in the UK where Black Friday sales surged to new heights.
UK retailers who embraced Black Friday reported massive sales uplift on the day. Department store House of Fraser recorded a 125% increase in year on year sales while Very.co.uk saw orders jump 134% compared to Black Friday 2013.Yet, for most, this uplift did not translate to an overall sales increase or the holiday season.
Black Friday Has Changes The Cadence Of Holiday Sales. Black Friday has arrived in the UK with a bang, but for most eBusiness executives it hasn’t driven a massive sales uplift. Instead, it’s pulled customer purchasing forward in the holiday season, leaving like-for-like sales reasonably static.
Thanksgiving weekend has traditionally been highly lucrative for retailers, but this year saw another drop in spending specifically on Black Friday. In the meantime, online shopping continues to soar, and the weeks leading up to Thanksgiving weekend provided consumers with deep-discount sales. In short, the weekend itself is becoming less valuable to the average consumer. But how does consumer sentiment match up with this shift in behavior? How do perceptions of the 2014 holiday season differ from those of years past and consumers’ initial expectations?
As part of our recent research efforts, we leveraged Forrester’s Technographics® 360 multimethodology research approach to gain a better understanding of consumers’ shopping habits (using our ConsumerVoices Market Research Online Community) and to track online conversation and sentiment relative to Black Friday and Cyber Monday leading up to the holidays and afterwards (using NetBase aggregated social listening data).
On Tuesday at 8 a.m., I received a call from my mother. Instead of driving to her office, as she’s faithfully done at that time for more than a decade, my mother was caught between shelves of cashmere. Macy’s was having a pre-holiday one-day sale, and my mother was thrilled to be part of the early-bird crowd getting first dibs on cardigan colors at 50% off. I was struck — not by my mother’s rare excitement about the discount but by Macy’s success in changing her behavior. My mother traded her comfortable weekday rhythm for a detour to the mall, thanks to Macy’s timely, exclusive promotion.
This example is representative of a major potential shift in which consumers break traditional habits thanks to strategic sales and effective marketing. My mother’s impromptu spree is only a precursor to the behavior that could play out next week when Thanksgiving Thursday becomes the new Black Friday. For the first time in its history, Macy’s will open on Thanksgiving itself to compete with retailers like Target and Best Buy, which open their doors moments after the pie crumbs and coffee cups are cleared away. For Wal-Mart, Black Friday 2013 will start one full week early.
Successfully reaching online shoppers during the critical holiday season is crucial to the Q4 success of eCommerce businesses. Forrester recently published its “US Online Holiday Retail Forecast, 2011”; it predicts strong growth despite the current economy. My colleague Sucharita Mulpuru shared in her blog that November and December alone are expected to pull in nearly $60 billion in online revenues in the US, a 15% increase over 2010 and about one-third of the overall volume of online sales for the year.
But what are the drivers for purchasing? How do consumers discover a good deal? Forrester collaborated earlier this year with the eCommerce company GSI Commerce to answer these and other questions and to create a picture of online buyers’ purchase journey in various categories during key periods of the Q4 2010 holiday season across 15 eCommerce sites.
We found in this study that search and email were the most effective tactics in driving sales, and shoppers were heavily influenced by retailers’ marketing efforts during key dates such as Cyber Monday and the Thanksgiving weekend. But in many cases, it's a combination of marketing tactics that makes people buy: More than half of US consumers purchasing products online in the soft goods category experienced two or more marketing touchpoints prior to the completion of their transaction.*
A recent Forrester report "US Online Holiday Retail Forecast, 2010" forecasts online retail sales during the 2010 US holiday season to grow 16% year over year. Consumers are showing a willingness to spend this season, with affluent consumers driving the most growth. Respondents to our North American Technographics® Retail Online Survey, Q3 2010 (US) plan to complete 37% of their November/December holiday shopping through an online channel, up from 30% last year.
Let’s have a look at the post-mortem of the 2009 US holiday season to understand what is really important to customers: In spite of the economic slowdown last year, nearly three-quarters of US online holiday buyers maintained or increased their spending in the online channel compared with 2008. Online holiday buyers are buying more online for the same reasons that the online channel is a successful and growing component of retail in general: convenience, selection, and price.