2 Consumer Trends that Will Impact 2014 Holiday Pricing Strategies

blog-2-consumer-trends-that-impact-holiday-pricingBlack Friday and Cyber Monday are two of the busiest shopping days of the year, but no two seasons are exactly alike. Changes in consumer trends, shifts in the economy, and the uprising of new competition all contribute to making each holiday shopping season even more unpredictable than the last. More than ever, it’s pertinent to stay informed of these changes and shift holiday retail strategies accordingly. To get you started, here are two important forecasts to bear in mind as you begin to prepare for the upcoming holiday shopping season.

Spend More, Save More

First, consider that while employment rates are steadily increasing across the board, wage growth remains stagnant. This means that many consumers will have incomes to spend and will likely be more inclined than ever to make lots of purchases during the holidays. The National Retail Federation, for instance, is forecasting as much as $617 billion will be spent in purchases this year in the months of November and December due to improved employment rates. However, recent economic woes and trends in retail have emphasized bargain hunting, meaning many consumers will likely still be in that mindset of searching for deals. For instance, wages over the past year were only up 2 percent compared to 3.1 percent around the time the last recession began in late 2007. From a pricing perspective, these employment and wage trends indicate that it will be wise to offer items with a variety of prices and bear in mind that marking down items may lead to an increase in sales when the bargain hunters begin jumping on deals.

Digital Bargain Hunting

Another trend to consider is the influx of technology that allows consumers more visibility than ever into retail pricing strategies. From smartphone apps to shopping bloggers and online coupon sites, consumers are becoming savvier than ever when it comes to stretching their holiday shopping dollars. As retailers, it is important to keep an eye on these money saving resources and come up with clever coupons and bargains to attract consumers at all times of the year, not just during Black Friday and Cyber Monday, since many consumers can find daily deals any day of the year outside of major shopping holidays.

More Holiday Forecasts

No matter how you choose to incorporate these trends and forecasts into your pricing strategy, be sure to consider the efficiency of incorporating pricing software into your workflow. Retailers who take note of other best practices and incorporate them the best will be placed for optimum success during the holiday shopping season. Give your company the gift of meaningful, actionable pricing and competitive intelligence that lasts all year and the next.

About PriceManager

Offering the most intuitive competitor price tracking software for Pricing and Margin Optimization, PriceManager offers insight into competitor pricing strategies, allowing businesses to maximize profits and increase sales and market share. Contact us to try PriceManager out for free demo and start your competitive pricing strategy today.

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