There is a strengthening yearly pattern that is often overlooked when planning holiday strategies – the post-holiday consumer phenomena that DynamicAction Data Science Labs identified as "The Retail Vortex."
Today’s retailers face unprecedented challenges, with even big industry names struggling to compete in the ever-evolving, fast-paced world of retail. Giants like Amazon, Walmart and Target are offering unmatchable prices and services that set the pace for customer expectations. With holiday shopping accounting for nearly 30% of retailers’ total profit for the year, the risk of navigating a perfect storm of shifting consumer behavior, intense competition and rising costs should send executives racing to get their teams prepared ahead of the season.
The Retail Vortex, a dramatic confluence of consumer behavior, drastically impacted retailers between Christmas Day 2018 and mid-January 2019. Waning customer acquisition met with radically increased marketing spend, prevalent free shipping offers, declining units per order and a soaring number of returns, quickly eroded the recently won seasonal profits.
Today’s digitally-enabled consumers are transforming the mechanics and economics of retail, and it is critical for retailers to evolve their analytical approaches to align with the increasing fluidity of customer activity. So, with plans for peak Christmas shopping already rolling out, how can retailers navigate the potential profit depression of the Retail Vortex? Read more of DynamicActon CEO John Squire's article in RIS News.