When the famous ball dropped in Times Square on New Year’s Eve and 2020 officially began, few people might have anticipated what awaited the world in the months ahead. By the end of March, a global pandemic had changed the way people across the globe lived their lives as governments scrambled to prevent a potentially deadly virus from spreading. No aspect of life has been left untouched by the COVID-19 outbreak, including how people shop. Stay-at-home measures and government-mandated closures proved a formidable challenge for small business owners. Another challenge awaits such businesses this holiday season, when consumers are expected to do much of their shopping online.
Many small businesses thrive on welcoming customers into their facilities. While no one can predict how long social distancing measures will remain in place, it’s reasonable to assume that consumers may be hesitant to visit stores en masse this holiday season. But the spirit of the holiday season will return, and that spirit will still compel consumers to look for gifts for their loved ones. Small business owners looking to capitalize on the holiday shopping season can try these strategies as they prepare for what promises to be a unique final month of 2020.
• Start early. Holiday promotions typically feature discounted items, and small business owners can hit the ground running by announcing sales well in advance of the holiday season. Consumers have adapted to lengthy delivery times during the outbreak, and retail analysts predict many will begin shopping earlier than ever before to account for potential delivery problems. By discounting items early, small business owners can put themselves in position to capitalize on early bird shoppers.
• Keep sales going. The Bureau of Economic Analysis noted that economic growth in the United States declined by 5 percent in the first quarter of 2020, and in June the Congressional Budget Office predicted that growth would ultimately decline by 38 percent. Such figures suggest that money will be tight this holiday season, and small business owners can expect to compete for every dollar. By starting sales early and keeping those sales going throughout the holiday season, small business owners can put themselves in the best position possible to capitalize on consumer spending, however limited that spending may be.
• Apply past experiences. Small businesses have had more than a few litmus tests to gauge consumer behavior during the outbreak. Easter marked the first major holiday to occur while stay-at-home restrictions were in place, and since then retail holidays like Mother’s Day and Father’s Day have come and gone. Small business owners can examine consumer behavior during past retail holidays to inform their approaches to the coming holiday season. If consumers expressed a desire for gift packages that reduced their need to make multiple shopping trips, small business owners can design and promote gift baskets filled with an assortment of products available in their stores. Creativity figures to be a necessity to attract customers this holiday season, and past retail holidays can inspire a new approach.
Small businesses can confront the challenge of the coming holiday season by embracing a handful of strategies to attract consumers during what promises to be a season unlike any other in recent memory.