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Weekly Round Off With HTE ✨
🌟 Hey there, dear readers! It's that time of the week again when we gather around to catch up on the latest and greatest in the Direct-to-Consumer (DTC) world. 🚀
So, let's get this party started! 🎉
Welcome back to another exciting edition of our DTC (Direct-to-Consumer) Insider newsletter. 📰 Our mission: to serve you the freshest news and insights straight from the heart of the DTC universe. 💡 With every update, we're arming you with the knowledge to be the smartest one in the room. 🤓
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Let’s Dive in!
Winners and losers of Black Friday 2023 🌟
US Black Friday sales rise 2.5% -Mastercard Spendingpulse 📈
Kohl’s CEO shifts focus back to stores: ‘The digital business is really what’s bringing us down’ 🏬
Small Business Saturday remains a big spending day for Americans🤩
Why BNPL is an essential brand and retailer strategy this holiday season 🛍️
Winners and losers of Black Friday 2023 🌟
~25 November 2023, Retail Dive
Inflation has posed a persistent challenge for retailers throughout the year, influencing consumer behavior as they become more cautious. Black Friday, traditionally a crucial day for the industry, saw retailers promoting holiday deals earlier than usual to stimulate spending. Despite a record-breaking $9.8 billion in online spending on Black Friday, TD Cowen revised its holiday spending forecast to a 2-3% increase, down from the initial 4-5% estimate. Noteworthy events included the brief evacuation of the American Dream mall due to a bomb threat, which was later resolved. Some used Black Friday for geopolitical protests related to the Israel-Hamas War.
Winners:
Mobile and Online: Mobile shopping is set to surpass desktop buying for the first time this season, accounting for 51.2% of online spending.
Discount Hunters: Consumers strategically waited for the best deals, engaging in a game of "discount chicken."
Loser:
Doorbuster Decline: Traditional early morning doorbuster deals at big-box stores lost some urgency, with consumers waiting for more attractive offers.
The fiscal calendar's 53 weeks and the added shopping day before Christmas on Super Saturday may contribute to retailers' revenue. While consumers prioritize discounts, retailers need to navigate the evolving dynamics of consumer behavior in a post-pandemic era.
US Black Friday sales rise 2.5% -Mastercard Spendingpulse 📈
~25 November 2023, Reuters
On Black Friday, U.S. retail sales, excluding automotive, saw a 2.5% YoY increase, as reported by Mastercard SpendingPulse. This aligns with its September projection of a 3.7% growth for the entire holiday season (Nov. 1 - Dec. 24). E-commerce sales surged by 8.5%, reflecting a trend of online deal hunting, while in-store sales grew by 1.1%.
Adobe Analytics noted U.S. online spending on Black Friday reached $9.8 billion, meeting expectations. These figures showcase a blend of online and in-store shopping, emphasizing the evolving nature of consumer preferences during the traditionally robust retail period surrounding Thanksgiving. 📈🛍️
Kohl’s CEO shifts focus back to stores: ‘The digital business is really what’s bringing us down’ 🏬
~21 November 2023, Reuters
In Q3, Kohl's faced a 5.2% YoY dip in net sales to $3.8 billion, with a 5.5% decline in comps. "Other revenue," mainly from the credit card business, fell 6.2% to $211 million. Despite a 158 basis point gross margin expansion to 38.9%, a 13% inventory decrease, and shrinkage at expected levels, net income plummeted 39% to $59 million. COO David Alves' abrupt departure led CEO Tom Kingsbury to eliminate the role, streamlining reporting lines.
Amid struggles, Kohl's is revamping its strategy, shifting focus back to brick-and-mortar stores. Kingsbury admitted online efforts hindered performance, emphasizing store success. With digital sales at 32%, Kohl's plans consistent pricing across channels. Sephora partnerships thrive in stores, but GlobalData's Neil Saunders warns of an outdated store experience. Kohl's aims to attract customers with merchandise changes, brand additions, and a festive store layout for the holiday season. 🛍️💼📉
Small Business Saturday remains a big spending day for Americans🤩
~24 November 2023, CBS News
Black Friday may be ending, but holiday shopping continues with a shift towards Small Business Saturday, potentially surpassing Black Friday in consumer spending. Last year, nearly $18 billion was spent at local mom-and-pop stores on the last Saturday in November. Dr. Kelly Hunt, District Director of the U.S. Small Business Administration, emphasizes the importance of supporting the roughly 350,000 local small businesses, contributing significantly to the economy.
Partnering with American Express, Small Business Saturday promotes the economic sense of shopping small, highlighting how spending at local businesses keeps money in the community. Over 70% of small businesses see Small Business Saturday as a crucial turning point, making the year profitable. With 33 million small businesses in the U.S., the event encourages supporting locals regardless of official participation, and the option to shop online at neighborhood stores adds convenience. Surveys suggest that more Americans are choosing to shop on Saturday, with millennials and Gen Z leading in Small Business Saturday participation. 🛍️🏪💳
Why BNPL is an essential brand and retailer strategy this holiday season 🛍️
~21 November 2023, Modern Retail
As holiday spending peaks in 2023, Buy Now Pay Later (BNPL) emerges as a crucial strategy, easing financial strain. With 35% of Americans accumulating debt for 2022 holiday purchases, the appeal of BNPL lies in its evolving features—interest-free options, extended payment terms, and credit-building initiatives.
Brands, like Sezzle, report significant gains, showcasing a 67% increase in basket sizes and elevated checkout conversion rates. BNPL aligns with consumer values, fostering sustainability and social responsibility. Its role extends beyond convenience, shaping a positive economic impact for both consumers and retailers in the evolving landscape of holiday shopping. 🎁💸🛒
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