Retailers in ‘survival mode’ work to gain market share
Shoppers hit the stores on Thanksgiving as retailers under pressure looked for ways to poach shoppers from their rivals.
As the holiday shopping season officially kicked off, retailers are counting on a lift from a better economy. But they’re also looking beyond economic data and mapping out ways to pick up sales from other retailers as Amazon expands its reach.
That can mean opening earlier than rivals on the holidays or even jumping into new product categories. So shoppers may find some surprises: toys and TVs at J.C. Penney, Barbies at Best Buy, kitchen appliances like wine refrigerators at B.J.’s.
At Macy’s Herald Square in Manhattan, it was the deals such as cosmetic and perfume sets from $10 to $20 as well as 40 percent off on boots and shoes that drew attention. Its Apple shop was packed too, with deals on gadgets such as the Apple Watch.
Despite the early crowds at stores, analysts at Bain say Amazon is expected to take half of the holiday season’s sales growth. And Amazon is the top destination for people to begin holiday shopping, according to a September study by market research firm NPD Group.
“The retailers are in survival mode. It’s about stealing each other’s market share,” said Marshal Cohen, chief industry analyst at NPD. “Amazon is the Grinch. They’re stealing the growth.”
With the jobless rate at a 17-year-low of 4.1 percent and consumer confidence stronger than a year ago, analysts project healthy sales increases for November and December. The National Retail Federation trade group expects sales for that period to at least match last year’s rise of 3.6 percent and estimates online spending and other non-store sales will rise 11 to 15 percent.