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2017 Holiday Sales Predictions and Advice to Reach your Store’s Full Potential

Posted on December 26, 2017

A few years ago, Boxing Day was a crucial sales day for most Canadian retailers, as it was considered by shoppers as the ultimate opportunity to save big on a variety of products. Today, this anticipation is still topical for a lot of shoppers. However, statistics are increasingly showing that most North American shoppers, including Canadian shoppers, kick off their holiday spending season on Black Friday, which is also considered the highest dollar spend day of the year. Consequently, this year’s Black Friday sales figures in Canada are almost double last year’s sales. These recent statistics prove that there is a shift in the shopping habits of Canadian consumers; they are becoming even more similar to American holiday shopping traditions.

The last Saturday before December 25th is also a very lucrative day for retailers across North America, which sometimes tends to be overlooked. It is the year’s second largest shopping day for consumers who are looking for last minute gifts. Prodco’s retail traffic index data over the last several years confirms the phenomenon, showing that the last Saturday before Christmas is the busiest shopping day of December, just ahead of Christmas eve.

According to a CIBC Poll, Canadians plan to spend an average of $643 on holiday shopping, which represents an increase of 8% compared to last year. Usually, the holiday shopping global spending in the US is a little higher with an average of $906 spent. However, half of the poll’s respondents confessed that they were probably going to go over their planned budget during their holiday shopping spree.

Even if Boxing Day seems to have lost popularity in Canada, it is undeniable that great sales opportunities exist for retailers on Boxing Day. A study conducted by Bloomberg revealed that the 2017 Christmas sales forecast is now more than one percent higher than expected earlier this year.  If this season’s sales attain Bloomberg’s latest projections, retailers might achieve the best holiday sales performance since 2005.

Considering these promising forecasts, you, as a retailer, must be ready to brave these busy shopping days and leverage all the resources available to capitalize on these opportunities. Begin by clearly understanding historical traffic trends around this time of year and align staffing requirements to convert the large number of shoppers into sales and successfully achieve your holiday sales goals.

 

Takeaways

The holiday shopping season is the most important period for retailers globally. It is a sales marathon, with Black Friday as the starting point and Boxing Day as the finish line. To end your sales season on a high point: be sure to prepare your organization, your sales staff, and your brick-and-mortar stores to successfully capitalize on this exceptional high volume of opportunities. Prep your teams by analyzing and understanding your stores’ historical traffic trends and leverage it with Prodco’s Retail Traffic Index to increase sales.

Prodco is a global leader in the delivery and management of retail traffic intelligence. Contact us today to get your hands on meaningful data reports that will help you take advantage of all opportunities and achieve your stores’ maximum potential this holiday season.

Prodco’s Black Friday Weekend review!

Posted on December 8, 2017

US Region

Prodco’s Retail Traffic Index for Black Friday reported a decrease of -0.60% year-over-year for all regions of the USA. The Midwest reported the largest year-over-year increase of 0.65% while the south reported the largest decrease of -2.10%.

According to a joint National Retail Federation and Prosper Insights & Analytics survey, within the 5 days surrounding Thanksgiving’s weekend:

  • 64 million Americans have chosen to shop online as well as in physical stores
  • 58 million people chose to do their shopping online only
  • 51 million people chose to do their shopping only at physical stores

These numbers tend to show that even though technology has many advantages, many consumers still enjoy shopping in brick-and-mortar stores. Is it part of the holiday shopping experience? It is a strong opportunity for retailers to create on-point shopping experiences for their consumers. This opportunity shouldn’t be neglected if retailers want the consumers to keep coming back.

Consumers who shopped both online and at physical stores spent $82 more than online-only shoppers, and $49 more on average than physical-stores-only shoppers. The key of success in this high-volume sale season seems to be linked to the power of creating different and enjoyable shopping environments in-store and online. Shoppers needs have to be identified and addressed properly no matter where they are shopping.

Canada Region

Black Friday launched the holiday shopping season in Canada.

Prodco’s Retail Traffic Index for Black Friday for Nov. 24thshows a decrease of -0.38% for all regions of Canada. The British Columbia region reported the largest year-over-year increase of 6.47% while the Prairies reported the largest decrease of -2.67%.

A few days before the Black Friday, surveys led by colossal institutions such as RetailMeNot, projected a record spending year for Canadian shoppers. As spending continues to increase year-over-year during the thanksgiving weekend in America, Canadians are benefiting from the same sales offering on this side of the border. 

Moneris, Canada’s largest processor of electronic payments, recently reported that Black Friday 2017 saw a 4.5 per cent increase in spending over Black Friday 2016. Year-over-year, Canadians seem to buy more during Black Friday weekend mainly because shoppers often consider the long weekend offers as the last ones before Christmas. In the last few years, Black Friday weekend sales have even exceeded Boxing Day’s sales volume.

As the spread of Black Friday sales offerings spills over north of the border, and coupled with the weak Canadian dollar, purchases at Canadian retailers by American shoppers soared 14.82 per cent for the first time in Canada. 

Overall, brick and mortar stores continue to be the main shopping destination as only 10 per cent of total retail sales in Canada was from online shopping. Even with the ease and convenience of making purchases online, physical stores will continue to be the main driver for retail sales.

If you would like to receive Prodco International’s Retail Traffic Index Report on a weekly basis, or our monthly newsletter, please click here.

Prepare your team for success every day!

Posted on November 17, 2017

Continuous improvement tools are driven by data.

As a store manager, you are on the frontlines of your retail operation. Make sure you are equipped with the right information at the right time.

To truly optimize your store’s potential, start by capturing accurate traffic data to uncover operational opportunities:

  • Better manage staffing with insights on peak traffic trends
  • Understand your conversion rates by tracking your store targets and goals, fitting room conversion, and storefront initiatives
  • Improve loyalty by analyzing customer visit loyalty

With Prostore, Prodco’s real-time analytics platform, store managers can achieve better performance in all these areas through continuous improvement throughout the day.

Make the most of marketing!

Posted on November 9, 2017

Zero in on the marketing efforts that have a measurable impact on conversion.

Retailers use numerous strategies to promote their business and drive to store: from e-couponing to themed promotions, seasonal events and beyond. These efforts all represent a cost, and as such, you need to know if they’re working to truly drive sales.

POS data is only one part of the story. Traffic counting helps provide a fuller picture so you can accurately evaluate the success of a campaign: 

  • Powerfully correlate the day’s sales with foot traffic. Did your promo drive to store but customers failed to convert? Perhaps traffic was low, but promoted items did well—what are the factors in place to maintain and amplify?
  • Understand your store’s hotspots and how they function during a promotion. Measure how long people stay at displays, windows and promo areas.

Get granular. Know whether promotional initiatives like changes to store hours, window displays, and in-store events really help drive traffic and conversion.

Is your people-counting system giving you the full picture?

Posted on October 19, 2017

Understand what goes on in—and around—your stores so you can fine-tune your business!

Your numbers are only as good as the insights they reveal. Go from counting traffic to understanding how every element in the physical space is working to drive—or repel—conversion.

Circulation: understand the drivers that affect your walk by traffic.

Window displays: make sure they’re working as hard as they should be.

Store sections: which ones are the busiest? Which days of the week?

With in-store analytic solutions, you get the big picture and the details, so you can make informed decisions to drive your business forward.