TRENDS

How Well Do You Know Your Customer, Really?

The customer mood board your team papier-mâchéd in 2011 is probably outdated. 

So I gathered the latest data on who’s actually shopping this holiday season and how. I think you’d like to meet them.

Identity breakdown 

Who they are: Not Gen Z and millennials, to retailers’ disappointment. This holiday season, those covetable generations are duct taping their wallets shut.  

• In a Bloomberg/Harris Poll survey, more than 60% of both 18–34 year-olds and 35–44 year-olds said they have less to spend on the holidays this year. 
• The youngest among us are also the thriftiest: Teen spending hit an all-time low in H1 2020, declining 9% YoY per Piper Sandler’s annual teen survey. 

Gift bundles or tiered discounts may persuade young shoppers to spend anyway. In the Bloomberg/Harris Poll report, younger Americans were around three times as likely as their elders to view gift giving as important this year, in spite of *gestures broadly*.  

When they’re shopping: Not when holiday calendar purists want them to, ShopperTrak reports. The ten biggest discount days will only make up 34.2% of all in-store holiday traffic, compared to 46.5% last year. 

Where they’re shopping: Anywhere there’s a wi-fi connection. Nearly 50% of Americans surveyed by Bloomberg/Harris Poll said they’ll purchase gifts mostly or entirely online. 

How they feel: Updates from the campaign trail are destroying 1) push notifications and 2) gifting habits of yore. 

Nearly seven in ten respondents surveyed by Bloomberg/Harris Poll said they’re feeling uncertain about the economy in the election lead-up; of those potential shoppers, 50% said they’re spending conservatively (in the budgeting sense) as a result. 

Bottom line: Analysts had already predicted holiday growth would slow for retailers during their all-important quarter. Decreased enthusiasm from shoppers means brands should prepare for a slower holiday season—or work on their marketing skills.

PAYMENTS

The Latest Installments Installment

Yesterday, Macy’s said it invested an undisclosed amount in the buy now, pay later (BNPL) service Klarna. In exchange, Macy’s shoppers can divide their next throw blanket purchase into four interest-free payments.

Why now: As part of a mid-pandemic intervention reinvention, Macy’s is doubling down on services that prioritize affordability.

• In a recent interview, CEO Jeff Gennette said Macy's four million new online shoppers in Q2 had requested flexible payments (among other overdue updates).
• Budget-friendliness resonates well with Macy’s existing customers. Its off-price chain, Backstage, will open more stores this year. 

Zoom out: Klarna’s rival BNPL providers have signed up droves of new merchants this summer. But department stores, as usual, have been slow on the uptake—making Macy’s one of the few to offer a fintech-powered installments service. 

• One example I could track down: Dillards Afterpay.

SPONSORED BY LISTRAK

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What makes them all such brainiacs? They’re growing their revenue and digital marketing channels with Listrak—and seeing the power of integrating email, SMS, and behavioral triggers on one platform.

Listrak is the digital marketing automation platform trusted by 1,000+ leading brands, and now they’re sharing the secret to driving incremental revenue.

It’s called the Revenue Gap Index (RGI)—an analysis that pinpoints gaps in email/cross-channel marketing programs.

Still need convincing? Brands like 7 For All Mankind, Jonathan Adler, and Tula Skincare have all seen dramatic gains thanks to Listrak’s RGI.

So if you’re ready to join the ranks of retail’s best and brightest, check out Listrak’s Revenue Gap Index.

Get the insights trusted by retail marketing experts right here.

RESALE

Sneakerheads World Tour

Realize those Slack sneakers look best in the box? You could find a second home for them outside the U.S.

In the world of secondhand sneakers, international shoppers are the GOAT, according to StockX’s latest resale report. 

• StockX projects the global sneaker resale market will reach $30 billion by 2030. $19 billion will be generated outside the U.S.
• Growth’s already underway: This year, non-U.S. transactions on StockX rose 260%. 

Why it matters: The already accelerating sneaker resale market has hit warp speed in 2020. These figures are a sign that resale apps can and should update their shipping capabilities to reach diverse markets. The U.S. brands fetching astronomical resale values abroad (hi, Air Jordan) should increase their international presence, too. 

Where to start? Try Japan, Germany, France, Italy, and the U.K.—some of the hottest markets by StockX’s measure.

WHAT ELSE IS BREWING

• Retail leaders demanded the U.S. government resume stimulus negotiations.
• 10.10 day revealed its (short) participant list. 
• Ikea is on track to open 50+ new stores this year.
• Dollar Tree will hire more than 25,000 holiday workers.
• Levi’s is expanding its Target partnership to 500 stores, up from 140.

COMMUNITY

Welcome to Coworking, our segment highlighting the best part of Retail Brew: you, the readers. Want to see your name here? Fill out our quick nomination form, or share it with a friend who reads Retail Brew. 

Today we’re virtually connecting with Jarod Courtney, Global Skateboarding Footwear Product Line Manager at Nike. 

How would you describe your job on a date? Ultimately, my #1 job is to represent the skateboarder, and specifically our Nike-sponsored pro riders, in the footwear creation process. I'm also responsible for marketplace and consumer insights, and line plan strategy.

Something we can’t guess about your job from your LinkedIn: I'm the master of everything, but the owner of almost nothing. Nike is a matrixed organization, so effectiveness in my role is based on my ability to influence through leadership, teamwork, and the voice of the athlete.

Favorite project you’ve worked on: The Zoom Janoski Flyleather RM 

A brand you’re obsessed with (that isn’t your employer): Patagonia

SWAPPING SKUS

Everyone claims their brand is “authentic,” but how can retailers pull it off? Catch some suggestions tucked into these reads.

• The path to becoming a purpose-driven brand boils down to one golden rule: “Don’t be Pepsi.” (Highsnobiety)
• You may not be a Marine Serre shopper, but you’ve seen her crescent moon-printed bodysuits. Here’s how the designer became an Instagram sensation. (Complex)

ICYMI

Catch up on the Retail Brew stories you may have missed.

• What Every Brand Can Learn From Athleisure’s Rise
• Are Shoppers Ready for the Return of the Megamall?
• Gucci Enters Resale With The RealReal