Before the holidays, the anxiety among Arkansas retailers was palpable. We worried, “Will consumers cut back due to economic uncertainty?” Or, we wondered, “Will we be pleasantly surprised by shoppers who up their spending to feel more connected to loved ones?”
In November, we took a collective deep breath and, as an industry, not weathered the storm but thrived as we said goodbye to 2020.
In-store shopping and events went on hold, but pickup and delivery orders surged. In December alone, Tipton & Hurst’s e-commerce sales were up a record 100%. Elsewhere across Arkansas, retail largely skyrocketed. From November through December, the National Retail Federation (NRF) reports U.S. sales grew by 8.3% to reach nearly $800 billion. According to Fortune, this increase was primarily driven by online transactions, up 49%, as Americans opted to shop from the comfort of their homes.
So, what’s next for Arkansas retailers? More importantly, how can we capitalize on this so-called “consumer resilience” to ensure growing — or at least steady — sales in the new year?
Enter Valentine’s Day. In 2020, the NRF noted customers spent an average of $196 on holiday-related gifts and celebrations, a 21% increase from the previous year. If our state’s retailers market correctly, 2021 has an opportunity to be even bigger.
Sweeten the deal: Online shopping continues to reign supreme. Retailers can break through the noise, and beat the competition, with holiday promotions or incentives. Studies show nearly 80% of customers say deals influence where they shop. About half say it speeds up their purchasing decisions. This year, stores can better hook consumers with early bird marketing campaigns, similar to Tipton & Hurst’s “Sooner is Sweeter.”
Capitalize on “treat yourself”: A 2020 NRF survey showed 18- to 25-year-olds planned to “treat themselves” as their non-traditional Valentine’s Day gifts or celebrations. Today, some Americans have extra money available after scaling back on dining, travel and entertainment. At the same time, many are desperate for self-care. Valentine’s Day is a prime opportunity for retailers to remind shoppers about giving back to themselves as well as loved ones.
Offer safe conveniences: As the retail industry has witnessed firsthand, curbside and delivery options are key to maintaining a steady flow of customers. Along with easy-to-use online shopping methods, stores may also want to consider drive-throughs. For Mother’s Day, Tipton & Hurst set up a temporary, contactless outdoor showroom that allowed customers to place orders from their cars. It was such a success that we’ve decided to set up another for Valentine’s Day.
Provide experiences: As Forbes recently highlighted, the U.S. is becoming an experience economy. But with COVID-19 health and safety guidelines, consumers are now more likely to select at-home or shareable entertainment options. This Valentine’s Day, retailers can snag new business by diversifying beyond traditional gifts, whether it’s offering curated charcuterie boards or online flower arranging classes.
Surviving in the COVID-19 economy requires constant ingenuity. But with foresight and tried-and-true marketing tactics, Arkansas retailers can leverage Valentine’s Day to set the tone, and secure much-needed sales, for a strong 2021.
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