Holiday advertising got off to a slow start this week as Florida residents braced for the second of two major storms in as many weeks. Amazon’s Prime Big Deal Days ended Wednesday, when Hurricane Milton made landfall near Tampa Bay.
The harsh weather took its toll during a month when many people had already begun their holiday shopping. Salesforce discovered that digital traffic in Southeast states fell 6% in the days leading up to Prime Big Deal Days.
A recent Gartner survey found that nearly one-third of customers start holiday shopping between July and October. Amazon started their October Prime event in 2022. Retailers such as Target, Walmart, and Wayfair followed suit this year, offering their own specials.
The weather’s effect on holiday shopping
“Natural disasters and significant weather events frequently disrupt holiday sales periods,” stated Gartner retail researcher Kassi Socha.
Early Prime Day data suggests that this year was more difficult due to weather. According to Salesforce, the first day of Prime Big Deal Days, October 8, saw a 4% drop in US internet traffic and a 5% drop in orders.
“There is evidence that current events in the U.S. are resulting in a quieter than planned Prime event,” said Caila Schwartz, director of consumer strategy and insights at Salesforce.
On October 8, global web traffic was up 2% year on year, while order growth was only down 1%. Traffic in Florida alone was down 10% from October 5-8.
On October 8, traffic in Europe increased by 10%, while online orders rose by 4%.
Part of the slowness in the United States could be attributed to marketers reducing the number of advertising and communications they sent to help affected customers prepare for and recover from storms.
“As brands continue to prioritize the health and safety of their customers, marketing efforts have been pulled back, contributing to the fall in overall YoY results so far this week,” according to Schwartz.
The ferocity of this year’s storms may have an impact on deliveries, in addition to traffic and orders.
“The effects are more widely felt in the supply chain and logistic side,” says Socha. “For example, package delivery is delayed. Consumers in damaged locations will purchase mandatory and consumable things (shelf-stable food, torches, portable chargers) rather than discretionary items.”
Services and Benefits for Holiday Shoppers
Even without the harsh weather, marketers are offering additional services and bonuses to sweeten the bargain for holiday buyers.
To entice early buyers and compete with Amazon, numerous businesses expanded their return policies to cover October sales.
“Several retailers have also pulled forward their extended holiday return policy to cover the October promotional periods,” Socha told me. “Macys, Newegg, Nordstrom Rack all began offering extended return policies for items purchased in early October through end of December to extend into mid-January.”
Socha further explained: “Many retailers like Target and Walmart are using the promotional period to amplify the benefits of joining their subscription programs (Target 360, Walmart+).”
A recent Gartner survey indicated that 57% of consumers intend to use one or more value-added services during the holiday season.
These options include Buy Online, Pickup In Store (BOPIS), curbside pickup, same-day delivery, and expedited shipping.
Price is a significant consideration for holiday consumers.
Many people feel that better deals may be found online rather than in-store. According to the same Gartner report, 20% of consumers want to increase their online shopping this year in order to get better deals.
Salesforce projected discounts to reach 22% in the United States this week, with the largest savings found in the general clothes, health and beauty, and home verticals.
Because price is a major consideration for customers, Adobe forecasts that holiday promotions will emphasize reductions, particularly discounts on pricey items.
