San Francisco, Cal.- Rising costs, the complexity of multi-channel strategies and the discounts they will be forced to offer will mean that retailers around the world will see a 2% drop in sales through the digital channel. in the holiday season, according to data from Salesforce.
The data comes from Salesforce’s Holidays Insights Hub, which through the Tableau platform, which it acquired in 2019, aggregates information from billions of purchase orders to generate predictions about trends in digital sales in the holiday season, which includes digital week (Cyberweek) and the Thanksgiving and Christmas season.
The tendency. While in 2020, digital sales during the season that covers the months of November and December grew by 50% compared to 2019; in 2021, the digital channel only grew 5% compared to the previous year and in 2022, the rate will be negative, since e-commerce sales will decrease 2%.
- 2020 was about solving the problems of the last mile, how to get the product to the end customer given the sudden growth in demand?
- 2021 was about solving the problems of the first stage of the chain, how to get the product from the ports to the warehouses?
- 2022 will be about how to make declining profit margins not become the holiday season spoiler for sellers.
“Through discounts, merchants will feel compelled to try to increase demand, but this will hurt their margins,” said Rob Garf, vice president and general manager of Retail at Salesforce.
what about inventories. Retail businesses made purchases based on the demand generated by the Covid-19 pandemic. Much of that product was stuck on ships in ports and by the time it reached the supply chain, demand began to drop for certain categories: monitors, computers, televisions, clothing and casual shoes.
A data. There has been a 95% reduction in online sales of face masks globally.
In order to make room for products for the year-end season, which was being earmarked for inventory storage, and to obtain operating cash flow, merchants began offering deep discounts in the months of July and August during the season. back to school.
Retailers hope to get rid of stagnant inventories before the holiday season arrives in 2022, and so they have launched discounts of 50, 60 and even 70 percent.
Forecast. Operational tensions in the retail industry will eat into much of merchant profits. Shopping habits in the digital channel have undergone profound changes that merchants are discovering how to deal with.
- A third (29%) of all digital sales will be made in the first three weeks of November, during the start of the year-end season.
- 60% of all digital purchase orders will be influenced by physical stores.
- Discounts will be seen that will respond to the push and pull between sellers and consumers. Consumers will end up winning and there will be a 10% cut in sellers’ margins.
“Each year retailers come into the holidays with a very well thought out promotional schedule and after the first weekend of sales they break it and start discounting more and more and ultimately the consumer wins the game. discount,” said Rob Garf.
rodrigo.riquelme@eleconomista.mx
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