What retailers should be doing: Target CEO Brian Cornell noted on the company’s most recent earnings call that despite the financial difficulties many households are enduring, the retailer has consistently found that consumers are excited about celebrating the holidays. While retailers should expect more shoppers trading down and purchasing fewer items, plenty of consumers will still take advantage of the occasion to splurge on premium items.
- Retailers need to have options on both ends of the price and quality spectrum to make sure they appeal to consumers feeling the pinch, but don’t miss out on revenue opportunities from people willing to spend more.
- Those that can’t compete on price should focus on adding value in other ways, like offering same-day fulfillment or in-store pickup options to offer convenience to shoppers.
- With a long holiday season ahead of them, retailers should consider an earlier start to running promotions and setting out seasonal merchandise—especially with another Prime Day potentially taking place in October.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.