DynamicAction's Chief Marketing Officer, Sarah Engel, penned a byline for Total Retail analyzing key learnings from the DynamicAction Spring 2018 Retail Index. What a YTD Analysis of Consumer Transactions Tell Us highlights consumer behavior from promotions to ease of returns, increased free shipping to buying on mobile. Engel vocalizes that it is clear customers' shopping habits are shifting faster than ever, leading to both intense challenges and distinct new opportunities for retailers and brands.[mk_blockquote font_family="none"]
"What a YTD Analysis of Consumer Transactions Tell Us
As the heat index increases across the nation, so do the questions surrounding what customers will expect and how retailers and brands will perform in the months ahead. From constant promotions to ease of returns, increased free shipping to buying on mobile, consumer behavior is shifting faster than ever, leading to intense challenges and distinct new opportunities for retailers and brands.
With the ever-growing chasm between the retailer “haves” (those that have embraced the need for transformational shifts in their business) and “have-nots” (those that are making bankruptcy headlines, cutting staff and missing financial projections), successful retailers are re-engineering their organizations and operational mind-sets with a keen understanding of shifting consumer behaviors and the new retail metrics driving profitable growth.
According to the DynamicAction Retail Index: Spring 2018, an in-depth analysis of over $8 billion in consumer transactions in the U.S. and Europe from January through Memorial Day 2018, North American consumers this year were not only increasingly shopping — and buying at full price — on their mobile devices, but also equating nearly every major or minor holiday with sales, expecting promotions, markdowns and free shipping at every turn.
Holiday Promotions Aren’t Just for the Holidays Anymore
Although promotions on average were down 5 percent year to date (YTD) and markdowns were up 7 percent YTD, displaying a balance of sorts, there’s a distinct difference in the way “holidays” are being treated. Beyond just Black Friday or semi-annual sales, shoppers have come to equate almost every holiday on the calendar with sales and special offers. Retailers are answering this call with Easter Week, Presidents’ Day and Memorial Day all showing spikes in promotions in 2018. Memorial Day shopping (May 22-28, 2018) showed a 9 percent increase in promotions applied to orders vs. Memorial Day 2017, while both Easter Week and Presidents’ Day showed a 16 percent increase in promotional usage vs. last year.
Mobile is the Fastest-Growing Channel for Profitable Transactions
Every year in recent memory has been declared “The Year of Mobile,” and yet in 2018 we’re finally seeing not just increased mobile usage, but both revenue and profit driven from mobile showing meaningful growth… Continue reading at What a YTD Analysis of Consumer Transactions Tell Us.[/mk_blockquote]To schedule a personalized review of the 2018 Spring Index and discuss how findings impact your retail organization, contact us.