Every year, the start of the holiday shopping season in Europe gets earlier. Early December was predicted to see the bulk of Christmas retail spending.
Some of the Thanksgiving shoppers are from the UK and the Nordic nations. As consumers grow familiar with the concept of shopping for deals outside of the officially mandated summer and winter sales periods, acceptance is rising quickly in France.
Let’s see how inflation in Europe affects and what to expect in 2022’s Thanksgiving season!
Does inflation affect Thanksgiving retail shopping in Europe?
The answer is yes. The weather is getting warmer now that school is out. So too is the economy. As a result of high gas prices, food shortages, climbing interest rates, and constant inflation, customers are concerned and are likely to change their purchasing habits. Thus, it follows that merchants are also concerned. They tend to start online shopping more and more frequently than go to stores only. The circumstances are favorable for the retail industry to experience another “exceptional” holiday season despite some particularly difficult challenges.
Factors in 2022’s Thanksgiving season
In Europe, Black Friday shopping is not just for Thanksgiving presents. In truth, most consumers benefit from savings for themselves as well. The most popular product categories in Thanksgiving retail and throughout the whole Thanksgiving shopping season are clothing, consumer electronics, and toys and games. How brands and retailers retain growth while doing so economically with an omnichannel strategy is the trillion-dollar question for 2022.
The main elements placing pressure on margins now
Cost of goods rising
The Producer Price Index (or cost of products) continues to show double-digit increases from a year ago, indicating that inflation will increase. For the remainder of the year, this will cause selling prices to rise even further.
Costs in the first and last miles rising
It is anticipated that the price of gas and diesel will keep growing, increasing the cost of fulfillment and returns.
Inventory supply problems and overages
The precarious global supply chain will become even more unstable as shortages of food and raw materials are predicted to get worse. However, 2021’s inventory glut brought on by excessive purchases has left businesses with an excess of goods. They want such substantial liabilities removed from the balance sheets.
Consumer concerns
Consumers already have a negative outlook on the economy. Since the indicator began to be tracked in the 1970s, consumer sentiment has never been lower. As a result, consumers may reduce their discretionary spending even more as they prepare for uncertain economic times.
How can you maximize your promotional period?
Utilize technology
You need every edge you can get during the busiest shipping season. For your trucking fleet, for instance, you can effectively use a transportation management system (TMS) to enhance route planning and guarantee effective delivery. Other logistics technologies can be used to automate inventory management and warehousing procedures, giving you up-to-date information on your entire business.
Don’t play discount chicken
Customers will probably keep their money in their pockets until they are certain they are getting a good offer. To prevent discounting too early and too frequently, concentrate early advertising on scarcity, exclusivity, and sustainability.
Managing client expectations
Additionally, shippers need to control and ensure that their clients’ and customers’ delivery timing requirements are understood. At the beginning of the epidemic, many retailers began including information on their websites regarding potential delivery delays. These statements have persisted on the majority of sites and have been included in many customer emails over time due to supply chain sourcing delays, labor shortages, and capacity restrictions on delivery. This is a sizable portion of both the retail sector and the logistics sector overall.
Curious about other best Thanksgiving retail strategies? Contact us now!
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