Recently Nikki Baird, a managing partner at leading analyst firm RSR, contributed a piece to Forbes: “Are Retailers Over-Promoting For Holiday 2016?” In an industry overview, she underscored that unless consumers were shopping for a major electronic item, they were more than likely to find their desired gift in-stock, as out-of-stock rates were down an average of 5.2% YoY. The piece made note that shoppers were not spending quite as much post-election in the early part of November, but are now in full swing of the holiday shopping season. However, with the intense and consistent promotional roll-out, it most likely hasn’t been made up in sales.
"Whether retailers need to or not, they are feeling the pressure to discount. According to analysis by DynamicAction, of more than $6 billion in North American online retail transactions, retailers are promoting much more heavily in 2016 than in 2015 – overall promotions are up 34% and up 52% specifically within the holiday season so far. Retailers are holding on average 12% more inventory by mid-December than they were in 2015."
Download DynamicAction's full Holiday Retail Index.