Early Spending Results are In! MULO BOOMs this Holiday Season
As of this writing, Black Friday and Cyber Monday (now seemingly extended to Cyber Week) are behind us. MULO (multi-location) pundits and agencies involved in retail and restaurant analyses and predictions are starting to call the winners and losers in the holiday Street Fight, which now involves battles between brands, products, SMBs, and MULO chains, online and offline shopping, and much more.
The most significant change in holiday marketing over the past five years is probably the impact of AI and rapid analytics in helping companies understand exactly what’s happening when someone clicks on an ad or leaves a retail store.
Here are some of the highlights of the first week of the vital holiday spending season.
The weekend is an early indicator
Consumers set a new record for Black Friday spending, putting $10.8B worth of goods and services in their real or online shopping carts.
The next three shopping days were also robust. Small Business Saturday accounted for $5.3B in sales, Sunday (which is apparently still just considered a regular day for clearly a day for shopping) resulted in $5.6B in spending and Cyber Monday delivered a whopping $13.3B in purchasing, according to one report.
Where were people shopping on Black Friday?
According to Placer.ai data:
- Mall traffic surged: As noted, indoor malls saw an 8.2% increase in visits year-over-year on Black Friday. Visits were up 5.2% at outlet malls and 6.9% at open-air shopping centers (OASCs), too. Indoor mall visits were also up 3.6% compared to Black Friday 2019, and OASC visits were up 5.9%.
- Shopping centers saw visits up 5.5% year-over-year, and Recreational & Sporting Goods likewise saw visits up 5.7%. Conversely, electronics stores saw the biggest decrease in visits, with foot traffic down 16.5% year-over-year.
- Individual retailers who saw the biggest increase in foot traffic on Black Friday year-over-year include Apple Stores (31.1% increase over last year), HomeGoods (17.4%), Target (16.8%), Marshalls (11.1%), Ulta Beauty (5.7%), and Nordstrom (4%).
Says Ethan Chernofsky, SVP of Marketing at Placer.ai:
“Black Friday is not just about purchasing products. It’s about getting out, and there are many players that benefit, including movie theaters and coffee shops who see some of their strongest visitation trends of the entire year on the day. So, while Black Friday has changed, it’s still absolutely critical for retailers even if the ways they need to take advantage have shifted.”
The game isn’t over until the fat man (Santa) sings
In the weeks ahead, we’ll continue to monitor spending patterns. MULO brands who are having tepid holiday seasons need to:
- Use their analytics to adjust spending (and even inventory, if possible)
- Ensure their local listings are up-to-date and that if they have hard-to-find products, they are utilizing targeted advertising to alert consumers
- Continuously track competitors’ pricing and promotions and make sure they are on par
- Tap into mall and shopping center traffic if they offer food/beverage and services
- Deliver the best possible customer service, which will be remembered long after the last unwanted gift is returned and the final piece of tinsel hits the dumpster.
And, of course, make sure you have a solid 2025 plan. The holidays will be over before we know it and MULO brands will be focused on Super Bowl, Valentine’s Day, and Mother’s/Father’s Day opportunities!
Watch this space for insights into how to leverage every spending season.
