It’s almost Thanksgiving, which marks the start of the all-important holiday sales season.
But before carving into the deals, read our latest Power to the Pricing People episode where we look at what retailers and brands can expect when it comes to consumer demand and pricing.
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Looking at sales projections, NRF predicts we’ll see a modest increase of 3-4% this year – the slowest growth in five years.
Many retailers have already launched early promotions to test demand and prepare for the peak season. However, a YouGov survey indicates US shoppers will hold back from Black Friday deals and plan to hold out for bigger savings later in the season.
This lines up with predictions from the CEO of Hasbro, who believes this holiday sales season will see a surge of last-minute, deal-dependent purchasing.
Master your inventory
Adding complexity as always is inventory. Many retailers over-ordered stock to avoid shortages, but with cautious shoppers, they now risk a surplus. Reuters reports some have already cut prices to clear shelves.
At the other end of the inventory spectrum, retailers could face shipment delays for hot new products. Drought conditions have reduced water levels in the Panama Canal, limiting the number of container ships able to pass through. This bottleneck could spell short-term challenges to navigate.
Nail your holiday pricing
Consumers might be playing chicken this year, but if retailers are agile with their pricing and promotion strategies throughout the next six weeks, peak season doesn’t have to be a turkey.
While grocery costs surged last year, consumers will be thankful that the prices of Thanksgiving staples have fallen 4.5% for this year’s holiday. Cooling inflation and a sharp decline in bird flu cases are to thank for reduced prices for tasty feast essentials such as turkeys, cranberries, and pie crusts.
With so many variables impacting profitability, don’t wing it when it comes to nailing your holiday pricing. Come and talk to us and we’ll help maximize the opportunities that the season brings.