Shopping Carnival Opens Real Retail To Survive

According to the world clothing shoes and hats net, for the crazy shoppers, China's "

The "black five" of the United States is their annual shopping Carnival feast.

Now, the heat of the "double 11" Carnival has not yet dissipated, and the "black five" has followed.

The strongest discount ever launched by US retailers attracted the attention of consumers across the globe and even the world, so that they could not afford to steal the last coin in their wallet.

In order to attract more consumers, whether it is physical retail or e-commerce, this feast is full of strength.

In view of the huge impact of the electricity supplier these years, the "black five" has become an important means for many entity retailers to get rid of the difficulties.

For example, Sears, the 100 year old retail outlet in the US, launched the biggest discount in the history of the company, 50 percent off, hoping to save the fate of bankruptcy.

However, it is not known whether such a broken arm can save itself from Sears's bankruptcy.

Shopping carnival season opens

According to a survey, US consumers spent an average of US $743 on spending during this period, up from $505 last year.

According to the National Retail Federation, about 164 million of Americans plan to shop on the upcoming Thanksgiving weekend, including black Friday and web Monday.

The results of the discount website RetailMeNot show that US consumers spend an average of US $743 over the period, up from $505 last year, and 70% of respondents said they plan to spend money in the "black five" consumption season.

RetailMeNot expects that the total volume of consumption this year will increase by 47% over the same period last year.

What is unexpected is that "black five" originally started on the public holidays during the Thanksgiving Day in America. When it started, it also raised the mood of British retailers and consumers.

Top business consulting McKinsey released the 2017 "black five" Consumer Research Report. Nearly half of the respondents said they would spend on the "black five" day.

Surprisingly, 81% of British consumers said they would take part in "black five".

Festival.

Compared with the poor 22% last year, the proportion of 81% can no doubt make British retailers secretly laugh.

RetailMeNot predicts that retail sales in the UK will reach 2 billion 600 million on the day of "black five", up 8% from the previous year, which is equivalent to 1 minutes of sales of 1 million 800 thousand pounds.

What is the reason why consumers on both sides of the Atlantic have such a strong desire to shop?

McKinsey said that with the pressure of slow wage growth and rising inflation, the arrival of the "black five" Shopping Festival could enable consumers to redefine "expectations" and continue to consume.

For consumers under long-term pressure, "black five" may represent an opportunity, a ticket to get more shopping spree at a higher discount, so as to successfully complete the Christmas gift preparation.

Meanwhile, consumer confidence in the US has been rising steadily, even to the highest level since August.

This is believed to be an optimistic view of the current economic situation in the United States.

Optimism and high enthusiasm make "black five" a celebrating shopping celebration. Especially among those who are accustomed to online shopping, there are close to 1/3 respondents who responded to McKinsey's survey - "black five" is their favorite shopping celebration.

How much do consumers love this holiday shopping season with "black five" in the lead?

According to McKinsey's survey, 28.98% of the 2585 American consumers interviewed thought that "black five" was one of their favorite shopping celebrations, and 29.8% of the 641 British consumers surveyed said so.

More interestingly, 25.5% of the US respondents and 36.86% of the British respondents said they were more and more fond of "black five".

In addition to the United States and Britain, RetailMeNot's survey also shows that Canadians' spending on the "black five" shopping festival may break this year, with an average expenditure of US $1400 per capita, of which 653 US dollars are used to buy gifts.

By contrast, Amazon's popularity is barely over two digits.

For retailers, they must ensure that all the concessions promised in this activity are unique and unique.

Otherwise, they will have to face the huge risk of losing these consumers in the next few years.

Physical retail to survive

Few physical retailers can successfully pform, but the process will be painful and costly.

According to the world clothing shoes and hats net, Sears reduced the price to cover all merchandise in the store, the discount range ranged from 50 percent off to 10 percent off.

Sears official said, even in the "black five" such discount day, such a strong discount is unprecedented.

In addition to Sears, another retailer under the company.

Kmart also adopted similar sales methods, with a discount rate of 40 percent off.

As a century old shop with 131 years of history, Sears hopes to adapt to the trend of electricity supplier through pformation.

They launched a third party exchange platform similar to Amazon, but with little success.

In the last quarter, sales of physical stores dropped by 17%. Sears had to close hundreds of stores and cut 2900 employees in Canada, accounting for 17% of the total number of employees in Canada.

Sears's business in Canada has applied for bankruptcy, and its US business is experiencing a sharp contraction and reorganization.

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At such a time node, Sears launched the biggest discount in the company's history, hoping to save its fate on the brink of bankruptcy. However, some analysts pointed out that even such a big discount could not save Sears's bankruptcy.

The discount does not solve the problem, because the millennial generation with the spending power will not choose to go shopping in this old department store just because of the discount sale, and those middle-aged people who are shopping in Sears are also slowly giving up here.

CNN (CNBC) pointed out that the big discount of Sears can be seen as the use of "black five" node to clear up the existing storefront inventory.

Even with so much effort, the typical traditional retail giants such as Sears and the situation of Amazon, represented by new retail, are in sharp contrast.

This year, Sears has announced the closure of more than 500 stores, while Amazon said it would substantially increase the current sales network of 450 stores; since 2009, the market value of Sears has shrunk from $8 billion to $400 million, while Amazon's market value has increased by nearly 550 billion US dollars from 36 billion US dollars. This year, Sears shares fell 57% and Amazon shares rose 52%.

Reuters reported that a newly traded fund had allowed investors to bet on the decline in traditional retail sales while another fund doubled betting online sales to further expand its dominance.

Glen Kacher of Light Street Capital Management, a hedge fund, says that many large retailers have not adapted to changes in consumer preferences or even lagged behind some corner shop gourmet stores, which now enable people to buy their breakfast sandwiches and coffee in a matter of seconds.

Glen Kacher believes that if the practitioners in the retail industry do not accept new training, the retail industry will suffer.

Reuters reported that "a small number of physical retailers can indeed successfully pform, but the process will be painful and costly."

Online shopping or "black five" main force

The half month holiday shopping Carnival will continue to be the main driving force of the electricity supplier.

A survey from PWC showed that only 35% of consumers focused on "black five" in recent years, which reached 59% in 2015.

In terms of sales, last year's online shopping Monday reached a record $3 billion 390 million, an increase of 10.2% over a year ago.

According to the retail media Euclid report, 42% of consumers intend to spend more than half of their year-end shopping budget on online shopping in 2017, which is 38% higher than that in 2016, and 75% of the 18 to 34 year old consumers plan to purchase goods online, which is 55% in 2016.

Therefore, the alternation of traditional retail and new retail mode may be more obvious in this year's shopping season. Consumers will be looking down to the "black five" that the entities rush to buy, but will focus more on Amazon and other e-commerce providers to order discounted products.

Therefore, the "online shopping Monday" after Thanksgiving will be the main force of the shopping.

CNBC pointed out that "black five" and "online shopping Monday" are no longer the two separate shopping season, but gradually formed a combination of online and offline, a half month of large-scale online shopping carnival.

This one Carnival will continue to be the main driving force of e-commerce, enabling retailers to grow in sales.

No way through the club believes that the fight for consumers is far from losing.

WAL-MART, for example, said its third quarter growth in online and physical stores was the fastest since 2009.

In addition, some entity retailers integrate their shops with the electronic business platform, so that consumers can browse the commodities online, and can conveniently pick up shopping items on the way home.

This alone will enable some physical retailers to survive.

The research of retail media Euclid shows that the most important thing for physical retailers to win consumers' favor is to learn to use their geographical advantages to provide convenience for consumers.

Reuters points out that there are two kinds of retail entities that can survive well. One is the large scale entities, such as WAL-MART and home depot, which have more than 5000 stores and 2200 stores in North America, and two focus on a certain subdivision of retail entities.

That is to say, a good way to prevent customers from going to Amazon is to focus on differentiation of products or services.

Some analysts believe that holiday shopping season is to buy meaningful gifts.

This is a good retailer that will never be overlooked.

If you don't understand the consumer's mind and run some very popular products, then go straight to Amazon.

Euclid also pointed out that it is not important for consumers to buy online or offline. The most important thing is that consumers are buying with you, not Amazon or other providers.

Euclid's research shows that 88% of year-end shoppers are happy to accept favoured brand advertising.

Retailers can attract consumers to buy in the store by playing "emotional cards" properly.

More interesting reports, please pay attention to the world clothing shoes and hats net.