In a shopping season that saw record-setting Cyber Monday sales and yet another surge in mobile commerce, there were plenty of highlights (and shockers) to go around — including a few surprises from Amazon.
The RTP team shares insight on some of the most significant and surprising developments of the 2016 holiday season.
Debbie Hauss, Editor-in-Chief: Well, who would have thought that dogs would get 2X more gifts than cats this year? Just kidding — that’s not the most significant or surprising holiday story of the year, but it was fun to report on! For my most “favorite” story of the season, I’m glad we reported on the companies that are giving back. Patagonia, Yoobi, Thorlos, eBags and Coin Up were mentioned in our coverage, and are worth mentioning again. And yes, I know businesses always need to be concerned about the bottom line, so to that end being socially responsible and charitable are appreciated and applauded by shoppers, so paying it forward also results in a payback for companies. There are many other companies doing their part for the overall good and I applaud all business executives who are dedicated to those efforts.
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Adam Blair, Executive Editor: This holiday season, I was pleasantly surprised that so many retailers were able to successfully ride the mobile commerce wave. Holiday 2015 had sent unmistakable signals that shoppers were eager to use their mobile devices not just for browsing and price comparisons but as vehicles for completing transactions. The move to mobile was borne out this year beginning with Black Friday and Cyber Monday, when mobile sales climbed 33% to generate $1.2 billion in revenue. That sales volume was undoubtedly the result of a lot of behind-the-scenes work by retailers and their solution providers throughout the year, streamlining the mobile UX and ensuring mobile sites and apps performed up to expectations when crunch time came around. Let’s hope retailers can continue to keep pace with future shifts in consumer behavior and preferences.
David DeZuzio, Managing Editor: Once again, the king of the retail jungle dominates. Amazon Go was by far the biggest development this holiday season and ultimately will continue to be influential in terms of the future of the industry. What can be seen as 1. A huge achievement in providing an absolutely seamless customer experience; 2. A holiday-ruining job-killing nightmare, or; 3. What some joked felt like legalized shoplifting with its lack of checkouts, the Go concept is truly revolutionary. Of course, that’s only if it’s able to be scaled up, and Amazon seldom has trouble scaling things. What didn’t happen? Full-scale drone delivery in the U.S. But have no fear, it’s coming, thanks again to Amazon. I thought the retail titan would have delivered at least a few packages this holiday season, but hey, what can you do? Permits, FAA regulations and a myriad of hurdles must be cleared before it becomes the norm. Whether that norm will be celebrated or an absolute nightmare thanks to the incessant buzzing of drones remains to be seen. One thing is certain: whatever happens in retail in the future, Amazon will more than likely lead the charge.
Klaudia Tirico, Features Editor: It’s always nice to see retailers give back to those in need, whether it’s all year round or just during the holidays. But Patagonia took “giving back” to a whole other level with their Black Friday announcement this past holiday season. The retailer donated 100% of its Black Friday sales from its 80 global stores and Patagonia.com to grassroots environmental groups. What’s even more surprising is the turnout the retailer received. Originally, the company predicted it would pull in more than $2 million, but it ended up donating $10 million. I give the folks at Patagonia credit for keeping their word — I’m not sure if all companies would stand by their promises when a number like that is revealed. The moral of the story is, good deeds resonate with consumers, and retailers are sure to find success with philanthropic efforts (big or small).
Glenn Taylor, Senior Editor: Although Thanksgiving weekend has been known largely for its doorbuster deals, the latest holiday season showed that these deals are more relevant than ever: Promotions that provided discounts, such as buy-one-get-one offers or 20% off specials, were up 42% year-over-year compared to Black Friday 2015. It’s obvious brands felt an even greater need to get out in front of their competition (and Amazon) to move product. Considering the increasing availability of merchandise through all channels, the need to compete solely on price discounts seems like a drastic decision. With 2016 producing a healthier spending environment as consumer confidence in the economy increases, it would seem retailers wouldn’t need to resort to such heavy discounts. While the season had its largest sales growth percentage since 2005 at 4.9%, I am more interested in seeing how (and whether) these sales translated into profits after the excessive markdowns are figured in.