Chain Store Age Mentions First Insight | First Insight's Study Identifies Major Retail Concerns for Holiday 2024
Promotional strategies and inventory management are among retailers’ top concerns as they prepare for the upcoming holiday season.
That’s according to First Insights’ “Retailers Blind Spot for Holiday 2024” report which is based on a May 2024 survey of U.S. retail decision-makers. It reveals that retailers are grappling with concerns about promotional effectiveness, inventory levels, and customer acquisition and retention.
The top concerns identified include:
- Promotional Strategies: Retailers are uncertain whether their promotional strategies will be too reactive rather than strategic.
- Inventory Management: There is a significant worry about having stocked enough of the right merchandise.
- Customer Alignment: Retailers are not confident that their planned assortments will resonate with target consumers.
Retailers cited their top data and insight sources — the top three of which were either backward-looking or derived from third-party data. More than half (53%) use previous seasons’ sales histories, 49% use trend services and reports, and 42% rely on customer comments and reviews from their websites.
The report also highlights the external pressures facing retailers, such as the impact of inflation on consumer spending and the competitive threat from online marketplaces, like TikTok Shop. With inflation cited as the number one external concern, retailers are wary of its potential to reduce consumer discretionary spending on gifts and other holiday-related purchases.
Other key findings from the report are below.
- Inflation Concerns: 81% of respondents stated that rising prices for essentials like groceries and gas would negatively impact consumer spending on discretionary items.
- Promotional Timing and Depth: Retailers are struggling with the timing and depth of markdowns, which are crucial for attracting consumers while maintaining margins.
- Customer Acquisition and Retention: Attracting new customers and maintaining loyalty among existing ones remain significant challenges.
“Preparing for this upcoming holiday season presents a pivotal opportunity for retailers to rethink their strategies for future seasons,” said Greg Petro, CEO of First Insight. “By focusing on customer insights and integrating AI-driven predictive analytics, they can focus their sights on where they’re going, and not where they have been.”
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