First Insight Identifies Major Retailer Concerns for Holiday 2024
23 Julio 2024 - 8:30AM
Business Wire
New Report Highlights Critical Pricing,
Promotions, and Marketing Challenges Amid Economic and Market
Pressures
First Insight, a leader in predictive analytics and Voice of
Customer (VoC) solutions, has released its latest report,
“Retailers’ Blind Spot for Holiday 2024”. The report highlights the
critical uncertainties retailers face as they prepare for the
upcoming holiday season, emphasizing the need for integrating
predictive analytics with consumer insights to optimize pricing,
promotions, and marketing strategies.
The report, based on a May 2024 survey of U.S. retail
decision-makers, reveals that retailers are grappling with concerns
about promotional effectiveness, inventory levels, and customer
acquisition and retention. The top concerns identified include:
- Promotional Strategies: Retailers are uncertain whether
their promotional strategies will be too reactive rather than
strategic.
- Inventory Management: There is a significant worry about
having stocked enough of the right merchandise.
- Customer Alignment: Retailers are not confident that
their planned assortments will resonate with target consumers.
“With rising inflation costs, retailers have much to worry
about, especially whether the products they bought will be what
consumers are willing to spend their money on,” said Greg Petro,
Chief Executive Officer, First Insight. “This makes it imperative
for retailers to ensure their offerings align with consumer
expectations.”
Retailers cited their top data and insight sources, the top
three of which were either backward-looking or derived from
third-party data. More than half (53%) use previous seasons’ sales
histories, 49% use trend services and reports, and 42% rely on
customer comments and reviews from their websites.
The report also highlights the external pressures facing
retailers, such as the impact of inflation on consumer spending and
the competitive threat from online marketplaces, like TikTok Shop.
With inflation cited as the number one external concern, retailers
are wary of its potential to reduce consumer discretionary spending
on gifts and other holiday-related purchases.
Key Findings from the Report:
- Inflation Concerns: 81% of respondents stated that
rising prices for essentials like groceries and gas would
negatively impact consumer spending on discretionary items.
- Promotional Timing and Depth: Retailers are struggling
with the timing and depth of markdowns, which are crucial for
attracting consumers while maintaining margins.
- Customer Acquisition and Retention: Attracting new
customers and maintaining loyalty among existing ones remain
significant challenges.
Voice of Customer Insights
One of the report's significant insights is the misalignment
between marketing and merchandising teams. Often operating in
silos, these teams struggle to synchronize their strategies,
leading to ineffective promotions and mismatched inventory levels.
By sharing consumer insights on pre-season items, customer-valued
products, and initial pricing expectations, both teams can better
align their efforts for success. First Insight’s report suggests
that by coupling VoC data with AI and predictive analytics,
retailers can move from a reactive to a proactive stance.
“Preparing for this upcoming holiday season presents a pivotal
opportunity for retailers to rethink their strategies for future
seasons,” added Petro. “By focusing on customer insights and
integrating AI-driven predictive analytics, they can focus their
sights on where they’re going, and not where they have been.”
To read the full report, go to firstinsight.com.
Methodology
First Insight’s findings are based upon a May 2024 survey
executed through InsightSUITE, with responses from 104 U.S. retail
decision-makers. Responses were sorted and filtered based on role,
title, company size, and retail sector. The analysis focused on
feedback from merchandising, marketing, and consumer insights
management at retailers and vertically integrated brands offering
apparel, footwear, and home décor items. Further details on the
findings are available upon request.
About First Insight
First Insight is the global leader in Voice of the Customer
retail solutions, transforming business decision-making through
actionable consumer insights and AI. First Insight’s platform
enables retailers and brands worldwide to boost revenues and
profitability by informing strategic decisions with consumer data
and removing guesses and personal opinions. Trusted by leading
retailers, vertically integrated brands, mass merchant retailers,
and wholesalers, First Insight leads in optimizing strategy,
product, pricing, planning, and marketing decisions. For further
information, visit www.firstinsight.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240723393231/en/
Media Contact: Berns Communications Group Michael
McMullan mmcmullan@bcg-pr.com
First Insight Contact: Viki Zabala
Viki.Zabala@firstinsight.com