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Are Black Friday And Cyber Monday Shifting Roles In Today’s Digitally Dominated Environment?

A wild Thanksgiving weekend that saw a sharpened focus on e-Commerce shopping concluded with $3.45 billion in online spending on Cyber Monday, according to data from Adobe Digital Insights. While this total was a 12.1% increase over 2015 totals, it barely edged out the $3.34 billion online sales total for Black Friday.

Considering Black Friday’s historical role as the day shoppers flocked to physical stores, the fact that its online sales numbers are just about equal to those from Cyber Monday may suggest that shoppers are less focused on the “how” and “when,” and more about the convenience.

The RTP team debates how retailers should react to these results, particularly as discounting becomes a major promotional tool and in-store shopping appears to be less of a priority for consumers. The editors also discuss what the weekend means for retailers going forward into the rest of the holiday season, particularly as more last-minute online shopping takes place closer to Christmas.

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Debbie Hauss, Editor-in-Chief: I think this year’s results-to-date confirm that more consumers will be shopping online and via mobile moving forward. Retailers must do what they do all year long: Build brand relationships with shoppers and deliver personalized offers and communications. Competing on price and discounting will not be the key to success — it will just lower overall profit potential. Retailers should work throughout the year on optimizing their supply chains and building strong distribution arms coordinated across all shopping channels. They also should continue to improve inventory strategies so they don’t get stuck with out-of-stocks or overstocks. The Cyber Monday results also confirm that one special day is not going to make the difference, especially when Amazon and others are offering special holiday deals days and weeks in advance. You still need to be competitive on Cyber Monday, but don’t focus all online marketing efforts on one day. Additionally, regarding brick-and-mortar, it seems to be a toss-up as to whether to open on Thanksgiving day or night. This is going to have to be a strategic decision made brand-by-brand, based on a retailer’s potential shopper base and impact on employee motivation.

Adam Blair, Executive Editor: Having covered retail for longer than I care to admit, I remember how “Cyber Monday” was first christened. The concept of the first work day after the long holiday weekend becoming an online sales bonanza stemmed from the idea that consumers had faster and better Internet connections at their workplaces than they did at home. While this idea may still have some validity — Cyber Monday 2016 appears to have set records with digital sales topping $3.4 billion — it’s probably a relic of the long-gone days of screechy dial-up modems. As for the rise of digital (and particularly mobile) commerce over the entire weekend, the smartest retailers seem to have stopped viewing this as a lack-of-foot-traffic problem and more as an opportunity. “Doorbuster” sales and segments on the local news about people lining up at 5 a.m. may be good for a bit of publicity, but they also may turn off as many people as they attract. If I were a retailer I’d be worried more about the level of discounting they felt the need to offer this early in the holiday season, and less about slightly less crowded brick-and-mortar stores.

David DeZuzio, Managing Editor: With Adobe predicting nearly $92 billion in sales this holiday season, retailers should be thankful that the industry is, in fact, thriving; there’s money to be made. But, every true omnichannel retailer must temper expectations for individual channels and look at the big picture: Brick-and-mortar isn’t dead, but it isn’t what it used to be; mobile is going to be the preferred channel in the very near future; and those who aren’t prepared for mobile dominance are doomed. My wife was caught up in Macy’s web site issues on Black Friday, but in all reality, it didn’t prevent her from buying anything, it just delayed her for a few hours. Luckily, she’s pretty patient, as I imagine many shoppers might have cancelled their orders, moved on to other retailers and put Macy’s on their Naughty List. Yes, retailers should focus on deep discounts to get shoppers in, but they need to have the bandwidth/associates to handle huge traffic no matter the channel. They need to cover every mile from first to last. Naturally, Amazon seems to have had all of its bases covered and if anyone is going to deliver on December 25 (at some point), it’s going to be Amazon. And in under a decade we will be writing for Amazon TouchPoints in the United States Of Amazon. Any online retailer offering delivery or pick-up on Dec. 24 is certainly a high-risk gambler; the margin for error is absolutely razor-thin, so they will be under the microscope. This will be fun to watch!

Klaudia Tirico, Features Editor: I can’t say I’m surprised to see that Cyber Monday sales weren’t up to par compared with Black Friday and weekend sales in general. I’m sure a majority of people had the day after Thanksgiving off and did their shopping online in the comfort of their own home. Why wait until Cyber Monday if products were discounted online on Black Friday anyway? Personally, I wouldn’t want to risk the items I really wanted selling out by waiting around all weekend. I think retailers are getting smarter about their online offerings during major holiday weekends. I noticed very few making an attempt to offer extra special in-store deals to drive foot traffic. I think it’s because shopping online is much more convenient nowadays — especially with a majority of retailers offering omnichannel experiences where customers can buy online and return in store. And since it is so convenient, consumers are able to avoid the in-store mayhem that Black Friday brings. This also means that retailers need to make sure their shipping capabilities are in perfect condition throughout the holiday season. Consumers need to be able to trust that their deliveries will make it to their doorstep on time. As trustworthy as they may be, I’m not sure if guaranteeing deliveries by 6 pm. on Dec. 24 or even 8 am on Dec. 25 is something all retailers should consider. My advice is to tread carefully when making these kinds of promises. If you can’t deliver, the trust will be gone.

Glenn Taylor, Senior Editor: Retailers haven’t appeared to be caught off-guard despite the major e-Commerce spike on Black Friday, and that’s great news. It shows that brands have caught up to the consumer’s desires and aren’t pushing channels they can’t afford to take a loss in. And as Black Friday has gained more of a stigma for its in-store insanity, retailers started to realize that maybe it’s time to cater to the online shopper who has no desire to set foot in a store. I personally did my weekend shopping from the seat of my bed before going to sleep, without even once considering the idea of going out to a store (although I’m positive I’ll go in the upcoming weeks), and I’m sure many people had the same thoughts in their heads. The discounting throughout the weekend wasn’t exactly the most promising news out of the weekend, contributing to individual shoppers spending less on average this year, so this is likely going to be the next issue retailers must analyze and respond to as big holiday events approach in the near future. If these deals can lure in shoppers to the online category, then great. But if they end up cutting into profit margins, then at some point brands are going to have to consider other ways to make their presence stand out during key spending times.

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