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Give Mom (and the Economy) a Lift with a Gift

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Presentation on theme: "Give Mom (and the Economy) a Lift with a Gift"— Presentation transcript:

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2 Give Mom (and the Economy) a Lift with a Gift
With just four weeks between Easter (April 16) and Mother’s day (May 14), retailers may have opportunities to generate earlier Mother’s Day sales or offer a coupon for a Mother’s Day purchase when making an Easter week purchase. Although February 2017 US retail and food services sales increased a modest 0.1%, to $474.0 billion (adjusted for seasonal variation), they represented a 5.7% increase from February Retail trade sales increased 5.9% from February 2016. Some analysts cited the delay in tax refunds as an underlying cause for February’s modest increase. Most economists are still optimistic, as high consumer confidence and good employment numbers will likely drive future consumption.

3 The Restaurant/Movie Combination
During May 2016, comp sales for the US restaurant industry decreased 0.3%, and comp traffic 2.7%. February 2017 data was even worse, with comp sales decreasing 3.7%, and comp traffic 5.0%. Although more people are eating at home, restaurants with strong Mother’s Day 2017 menus and promotions have many opportunities to increase sales, as Mother’s Day brunch or dinner is still a traditional dining-out occasion. The “eat-at-home” trend may provide restaurants with opportunities to offer special Mother’s Day meals for 2, 4, 6, etc. that people can take home or have delivered via the many delivery services.

4 The Message of Flowers Is Unmistakable
According to the Society of American Florists, 66% of the florists who responded to its 2016 Mother’s Day survey reported sales increases and slightly higher average transactions compared to 2015. One-fourth of florists said their sales increased 6 to 10%. Among the 20% of florists who said their Mother’s Day 2016 sales decreased, 19% said by 1 to 5%. Of those florists with the largest annual revenue ($1 million+), 76% experienced the most increase in sales. Of those in the $500K–$999,999 revenue bracket, 72% had increased sales and 63% had increased sales in the $300K or less revenue bracket.

5 The Lasting Memory of Jewelry
With more than 1,100 retail jewelers in the US and Canada closing during 2016, US specialty jewelry stores did well to increase May 2016 sales by 2.0%, to $2.79 billion. Specialty jewelry store sales increased 3.8% to $31.43 billion during all of 2016, and 7% during December 2016 to a total of $6.21 billion. Jewelry prices recorded increases during January 2017, compared to January 2016, with an overall increase of 3.7% YOY; watches, +5.4% YOY.

6 Advertising Strategies
Suggest a local restaurant and movie theater offer a discounted combination of dinner and/or brunch with movie passes for groups of 2, 4, 6, 8, etc. With younger Baby Boomers typically spending the most on average for Mother’s Day jewelry gifts, show retailers how well a combination of TV and direct mail will reach this target audience. With Mother’s Day the biggest family dining-out occasion, restaurants should offer a reservation option, even if they don’t normally take reservations, and then offer a discount or special gift for Mom for early reservations.

7 New Media Strategies Any business that targets a Mother’s Day audience can invite customers to submit photos with their mother and/or grandmother, and especially a video telling a special story about how their mother and/or grandmother impacted their lives. Use social media to display a selection of possible Mother’s Day floral, jewelry or menu selections. Ask people to vote for their favorites, and then offer those for Mother’s Day. Mother’s Day “businesses” and their employees can bring the day to women and their families in low-income nursing or assisted-living facilities with flowers and gifts and generate community goodwill by sharing videos of these visits on social media.

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