Survey: How to compete against Amazon for holiday sales
Although Amazon poses a major holiday sales threat, there are steps retailers can take to produce a merry season.
According to a new survey of 1,500 U.S. consumers by marketing platform provider Signal, 42% of respondents said Amazon will be their primary holiday gift destination. Consumers who use Amazon do so because it is easy (50%), because they are Prime members (36%), and because they like the product reviews and recommendations (29%).
One finding that suggests there is room to compete against Amazon is that 40% of respondents said they primarily shop elsewhere for holiday gifts. Another result that gives Amazon competitors hope is that while the primary way holiday shoppers browse for gifts is on a desktop/laptop (36%), the most frequent way consumers purchase gifts is in-stores (33%).
About one in five consumers primarily browse via mobile devices (smartphones and tablets). However, only 8% use smartphones and 7% use tablets as their primary way to make holiday purchases.
More than four-in-10 (43%) respondents say that digital advertising on a website or in a mobile app somewhat influences their holiday gift buying. One-third of respondents said that ads help them get discounts or deals, and 27% said that ads provide them with new gift ideas. However, because 48% of people surveyed also said that digital ads are annoying, Signal advises retailers to always prioritize experience above all else when planning online advertising initiatives.
"The retail environment is a complicated battleground, with mega-competitors like Amazon and demanding consumers who want to shop when they want, how they want,” said Mike Sands, CEO, Signal. “But retailers don't have to be Amazon to succeed. Instead, they can use the wealth of knowledge available in first-party data to understand their customers better than anyone else, gaining the edge they need to design personalized experiences that will delight holiday shoppers.”
Three more retailers commit to Green Acres Commons
Macerich’s new outdoor shopping complement to Green Acres Mall in Valley Stream, N.Y., just got three steps closer to a full house for its planned grand opening this fall. 24-Hour Fitness, Sonic Drive-In, and Ulta Beauty have all committed to space at Green Acres Commons, a 335,000-sq.-ft. retail center.
The Commons is now 90% leased and will also host Ashley Furniture Homestore, BJ’s Brewhouse, Burlington, Buffalo Wild Wings, Dick’s Sporting Goods, and Five Below. Next door at the 1.8 million-sq.-ft. mall, new tenant Century 21 recently opened a two-level, 70,000-sq.-ft. store and upgrades were made to existing Old Navy and H&M properties.
“Our goal with the new Green Acres Commons is to deliver more of the retailers and services desired by this attractive market, where upscale Long Island suburbs meet dynamic Queens neighborhoods,” said Joe Floccari, senior property manager of Green Acres Mall.
Dick’s plans to open its doors at the Commons next month. The remaining tenants will likely time their openings to synch with the fall grand opening.
Report: TJX Cos. among U.S. retailers to be impacted the most by Brexit vote
The recent vote by the United Kingdom to leave the European Union will have the biggest retail impact on companies that have high U.K. exposure, including U.S. off-price giant TJX Cos., MarketWatch reported.
Swedish fast-fashion giant H&M is also among the retailers to be most impacted. The United Kingdom is the company’s third largest market, behind Germany and the United States.
The MarketWatch report also cites a note by analysts at Cowen & Co., who believe that a stronger U.S. dollar, a byproduct of the vote, will further weaken the purchasing power of foreign tourists in the United States. Particularly vulnerable is the Saks Fifth Avenue flagship in New York City (which is owned by Hudson’s Bay), Macy’s and Tiffany & Co.
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