The retail industry has been hit hard by the events of the past three years. But for those who've weathered the storm, there are opportunities ahead. How can SMEs capitalise on the trends set to unfold in the last quarter? A recent report from CJ unveiled some eye-opening trends and insights that could significantly impact how retail owners plan their strategies.
1. Early Bird Shopping Trend
Consumers no longer view Black Friday as the exclusive day for the best deals. Shoppers are now initiating their holiday shopping much earlier, notably in October and early November. This trend, driven by an 'always-on shopping mindset', allows consumers to spread their holiday expenditures over an extended period and catch early-season deals. Retail owners should consider kickstarting their holiday sales campaigns earlier to align with this emerging consumer behaviour.
2. Inflation's Impact on Revenue Growth
The report indicates that the observed increase in revenue growth is more attributable to inflationary pressures rather than a surge in sales volume. The traditional shopping milestones like Black Friday is seeing a change in its revenue dynamics with a year-over-year revenue reduction of 3% on Black Friday. Retail owners should factor in these inflationary trends when forecasting their sales and planning their pricing strategies.
3. Top Performing Categories and Influencer Impact
Categories like accessories, beauty, clothing/apparel, and sports & fitness are witnessing a revenue growth, driven by continued demand and inflation. The popularity of home goods, household essentials, fashion, and consumer electronics is also on the rise. The role of influencers in promoting these categories is interesting, highlighting the potential benefits of influencer partnerships for retail owners.
Silvr's Additional Insights
Online Shopping is Here to Stay
Even if you own a physical store, having an online presence can boost your sales. People love the convenience of browsing and buying online.
Customer Reviews Matter
Encourage happy customers to leave positive reviews online. Good reviews can drive more people to your store.
Payment Flexibility
Offering different payment options, like cards, cash, or digital payments, can make shopping at your store a breeze for everyone.
How Can Silvr Help Your Retail Business?
Applying for a Silvr loan means ensuring your business stays ahead for the months to come. Silvr's streamlined application flow allows you to know of your eligibility for funding between 10K - 1 million EUR in up to 48 hours and provide you the visibility you need to tap into trends.
"Black Friday and the holiday season are challenging times for us. Our product usually has little chance against physical gifts that are popular. Being able to adjust our marketing budget accordingly requires a certain level of cash flow security. Silver provides us with exactly this security." - Michael Holzner, Co-Founder & COO, femtasy
For instance, with Silvr financing you can:
1. Boost Online Presence
Whether it's upgrading your website or investing in online advertising, having the necessary funds at the right time can make a significant difference this final quarter.
2. Inventory Management
Prepare for the early bird shopping trend by ensuring your shelves are well-stocked. With Silvr, you can have the financial fluidity to invest in inventory, especially in the top-performing categories.
3. Enhancing Customer Experience
From improving in-store aesthetics to providing multiple payment options, enhancing customer experience is vital. Silvr can support these initiatives and ensure you have the funds to implement customer-centric improvements promptly.
Sources
CJ Affiliate. (2023) 2023 Q4 Shopping Intelligence Report.
