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November 22, 2006

Turkey, Gluttony, Retail and Remainders

By David R. Butcher

Well, things are pretty quiet around here. Colleagues have taken off for Turkey Day travel, and those of us still working are trying to stay productive. So IMT is here to provide helpful tips and info. for retailers and consumers before the big holiday shopping weekend, as well as some other fun stuff. Enjoy, and we'll see you Monday.

Thanksgiving is about overindulgence. We sleep too long, we eat too much turkey, we watch too much football, we consume alcohol throughout the day, and we top it all off with too much pie. Really, the only thing harmonizing such an egregious sin as gluttony is the fact that we're thankful for it.

The following day leaves little time to recover.

Consumers throughout the U.S. will be out in force this weekend, searching for bargains and trying to get a jump on their holiday shopping. According to the National Retail Federation, about 137 million U.S. consumers are expected to hit the nation's shopping centers, malls and department stores during the long Thanksgiving weekend.

But the day after Thanksgiving — or "Black Friday," as it is known in the retail industry — is traditionally the biggest shopping day of the year. ConsumerReports.org estimates that 63 million Americans will shop on Black Friday, considered the traditional kickoff to the holiday shopping season. Almost all stores come out with big sales with early-bird specials to attract consumers, as people stand in line for hours before the store opens to grab the bargain of the year.

The closest explanation as to why it is known as Black Friday is given in Wikipedia: "Many retailers report some of their highest profits on Black Friday. The black portion of the name 'Black Friday' relates to businesses recording their losses in red ink and gains in black. This tradition lives on in modern accounting software, hence the name."

Yet revenue wise, this is not the best day; a couple of days before Christmas are the most prominent day from a revenue perspective.

It seems odd to us that the day after Thanksgiving, traditionally hugely successful for retail, was given the name, as traditionally "Black Friday" was coined for a day of stock market catastrophe. Originally, Sept. 24, 1869, was deemed Black Friday. The crash was sparked by gold speculators, including stock manipulators Jay Gould and James Fist, who attempted to corner the gold market. The attempt failed and the gold market collapsed, causing the stock market to plummet.

But we digress. Rather, we ask, are you prepared for the big day? Have you planned strategies to shop, and if you're running a business, have you prepared for the upturn in selling?

For small business retailers and boutiques, it may be too late to amend your Black Friday strategy. However, post-Thanksgiving, online purchases are expected to increase in sales, too, due to the longer work hours of average Americans. This allows opportunities for small 'brick-and-mortar' boutiques and small retail business to reach captive consumers on a global level. Whether you sell smaller stocking stuffers, under-$25 office party gifts or high-end merchandise, SmartBiz offers some tips for "recently conceived or expanding online retailers trying to promote and receive the 'biggest bang for their buck' during the largest shopping season of the year:

Create prominent relationships with other e-commerce destinations, for example online malls or price comparison sites that provide ongoing exposure on a global basis, which will help increase visibility, awareness, and drive traffic and sales.

Merchants should choose other retail sites who charge a flat rate compared to "pay-per-click". It is vital, especially during the holiday season that recently formed online businesses or even large retail chains, have the potential to post all their products (from high-end to low-end) and not incur the cost of the "pay-per-click" model, where click fraud is a commonly reported problem, along with the lack of ROI.

Research and find other e-commerce partners and retail sites that allow the consumer to pay the lowest price for your product and in the most secure online shopping environment.

Last, create affiliations with other online shops that market your product in the best light. For example, find other sites that have user-friendly technology that is simple to use with updated applications such as virtual shopping lists or wish lists that allow for comparison shopping.

For shoppers, we could suggest that a friend or spouse holds your place in line while you communicate via walkie-talkie, referencing a binder listing store hours and desired sale items, a prioritized roster of stores to visit, and a pair of comfortable shoes.

Or we could suggest what more and more people across the nation do: shop online.

Says SmartBiz.com:

This year's holiday season, online purchases are estimated to increase by 18 percent to $32 billion in sales. In light of the recent growth of online shopping on "Cyber Monday," the Monday following "Black Friday," online retailers have a limited yet powerful window of time, to continue to entice shoppers.

That way, you avoid this:

And this:

This, too:

As well as this:

And, inevitably, this…


Or we could suggest what we do: shop online…the week before Christmas.

Otherwise, good luck finding a parking space.


Remainders

The National Association of Manufacturers' (NAM) blog has a cool video on How Parade Balloons Are Made - The Macy's Day Parade.

And if you find yourself with an abundance of time today, we encourage you to check out yesterday's substantial (longer-than-usual) "Raging Industry Debates" article-posts, and discuss with other readers.

We also recommend former pro footballer-turned-manly dancer Emmitt Smith's pumpkin spice pound cake recipe.

We'll be back on Monday!



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