Damian Dovarganes/Associated Press
Damian Dovarganes/Associated Press
NEW YORK – This holiday season, Burger King won’t be the only place where you can have it your way.
It used to be enough for stores to promise discounts of up to 70 percent off to lure shoppers during the busy holiday shopping season. But the ease of ordering online and the sluggish economy has created more demanding U.S. consumers who aren’t impressed by discounts alone. They want their shopping just like their fast food: not only cheap, but convenient too.
That means they’re no longer afraid to walk away from the cashmere sweater with the perfect fit if the store is crowded. They’re also unwilling to buy those suede pumps that are just the right shade of blue if they have to pay to get them shipped. And they cringe at the prospect of carrying around a bunch of paper coupons; they’d rather be able to pull them up electronically on their smartphones.
Retailers from discounter Wal-Mart to department-store chain Macy’s are doing everything they can to make it easier for this new crop of finicky shoppers to spend their money during the busy holiday shopping season. Several are opening on Thanksgiving Day. Some are offering free layaways and shipping. Many are matching in-store prices with cheaper online deals. And others are allowing shoppers to buy online and pick up their merchandise in stores.
It’s the latest effort by stores to court shoppers such as Patty Edwards. Four years ago, Edwards, who lives in Bellevue, Wash., bought all of her holiday purchases at online retailer Amazon.com because she thought it was the easiest way to shop. But this year, she plans to shop elsewhere because stores are offering more shipping options.
“Now I’m not necessarily tied to Amazon,” said Edwards, a retail analyst and principal at investment firm Trutina Financial. “I can go to Nordstrom, Saks or Target and have stuff available to pick up. It’s a pretty simple process. That wasn’t the case four or five years ago.”
The have-it-your-way approach is partly a response by merchants to their fear that shoppers will spend less freely this season because of worries about high unemployment and a package of tax increases and spending cuts known as the “fiscal cliff” that will take effect in January unless Congress passes a budget deal by then. It also comes as the growth of smartphones and tablet computers have made it easier for shoppers to browse and buy with the touch of their fingertips. No need to battle long lines at The Gap when you can just Google what you want.
That puts pressure on brick-and-mortar retailers, which count on the holiday shopping season for up to 40 percent of their annual revenue, to find ways to get shoppers into their physical stores. That’s becoming an increasingly difficult feat: The National Retail Federation, an industry trade group, estimates that overall sales in November and December will rise 4.1 percent this year to $586.1 billion, or about flat with last year’s growth. Meanwhile, online sales are expected to rise 15 percent to $68.4 billion, according to Forrester Research.
“Retailers have to do a little more to grow sales this year,” said Frank Badillo, a senior economist at consultancy Kantar Retail.
To better compete, brick-and-mortar stores figured that they’d have to replicate their online rivals’ formula. Shopping in stores needs to be cheap and easy, they figured. So stores began trying new ways to make shopping more convenient last year, such as free shipping and expanded hours. But this holiday season, they’ve expanded the scope and scale of those incentives to include:
Expanded hours. Stores typically open in the wee hours of the morning on the day after Thanksgiving Day known as “Black Friday.” It’s typically the biggest shopping day of the year. But the Black Friday openings have crept earlier and earlier during the last few years, with retailers such as Macy’s Inc. opening stores at midnight. This season, some stores have expanded their hours even more: department-store chain Sears, toy-store chain Toys R Us, Wal-Mart Stores Inc. and others are opening on Thanksgiving to grab those who want to shop after their turkey dinner.
“We saw a shift in how customers are shopping last year,” says Ron Boire, Sears chief merchandising officer. “Members told us some of them want to stay up late. Others like the idea of getting out early.”
More shipping and return options. About 44 percent of retailers are offering free shipping this year, a jump from 12.5 percent last year, said Vicki Cantrell, executive director of Shop.org, the National Retail Federation’s digital retail division. And package delivery company UPS, which commissioned a customer service study with research firm comScore, said retailers also are working to make returns easier, by including return labels in packages or providing a link online that customers can use to print labels out. Additionally, some stores, including consumer-electronics retailer Best Buy Co., Toys R Us and Wal-Mart, are offering customers the option of ordering online and then picking up their merchandise in stores.
Layaway plans: Programs that allow customers to pay over a period of weeks have long been used for some holiday shoppers. But typically, shoppers have to pay a fee for these so-called layaways. This year, Wal-Mart lowered the fee it charges customers on its holiday layaway program from $15 to $5. And Sears and discount chain Kmart, both divisions of Sears Holdings Corp., ditched the fee they charge completely. The two stores previously had charged $5 for an eight-week layaway and $10 for 12 weeks.
Price matching. While small mom-and-pop stores long have offered to match the cheaper prices that customers find online, this year big merchants such as Target and Best Buy have said that they also will do that. The move is an attempt to combat the growth of so-called “showrooming,” when customers look at merchandise in stores but buy it cheaper online.
Shopping apps. Shopping apps for smartphones and tablets have been around for a few years, but this year retailers are beefing them up. For instance, Macy’s is launching a Black Friday portion of its mobile app, which highlights Black Friday specials and other deals not advertised elsewhere. It also will have maps and information about where in each store Black Friday deals can be found.