Thanksgiving has passed and the holiday shopping season has officially begun. Though many consumers started shopping earlier in the month, Thanksgiving and Black Friday sales are some of the first indications of how retailers will fare this holiday season. The reports and analyses are still being produced, but initial figures on Thanksgiving and Black Friday sales are encouraging.
According to the annual International Council of Shopping Centers (ICSC) Thanksgiving Weekend Shopping Report, more than 145 million adults spent time at malls and shopping centers and estimated spending, on average, $377.50. In addition to all the gift buying, venues for dining and entertainment also benefited from an added $78.70 in sales per adult.
The vast majority of consumers (87 percent) shoppers took advantage of in-store and online purchasing on Thanksgiving and Black Friday. Not only were there a lot of people shopping, nearly three out of four (74 percent) Thanksgiving/Black Friday shoppers spent the same or more than in 2016.
The news was especially good for brick and mortar retailers. ICSC estimates that 75 percent of all spending was captured by retailers with a physical presence. This doesn't mean that people weren't shopping online. However, retailers like Walmart, Best Buy and other physical stores with online components fared better their online-only competitors.
The data clearly shows the benefits of having an online store for small business owners with a physical location. While it may be too late for a business to setup a full ecommerce website from scratch between now and Christmas, there are some things current website owners can do to make their site more appealing to holiday shoppers. For example, having a way to buy online and pick up in-store has extra benefits. The ICSC survey found that 69 percent of those purchasing online and picking up in-store (click & collect) made an additional in store purchase
"Thanksgiving Weekend is a great indicator for what will be a holiday season full of spending, as we are seeing a very positive consumer sentiment and willingness to spend," said Tom McGee, President and CEO of ICSC. "Shopping centers across the country should feel very optimistic about the season ahead. While the shopping season is longer this year, it's not coming at the expense of the most popular shopping day of the year."
Now that Black Friday has passed and Cyber Monday is here, businesses need to finalize their plans for December. It's important that promotions in December meet the expectations of consumers. The ICSC data suggests that retailers will need to be as generous or more so than they were for Black Friday.
Three out of five (60 percent) consumers anticipate similar deals/promotions to the ones they saw this weekend. And more than one in four (28 percent) consumers said they think the deals/promotions in December will be better than what was found over the past weekend. Only 12 percent of consumers assume that December deals/promotions won't be as good as the ones they saw on Black Friday.
Since deals and sales are some of the greatest motivators for consumers during the holiday season, business owners need to make sure their site prominently features their best deals and that these are also advertised heavily in search and social media campaigns.
For more recent data about creating a better holiday marketing campaign, read this article on last minute shoppers.