Source: iStock | Irina Velichkina
Are Retailers Ready For Memorial Day Weekend?
More Americans are planning to celebrate the Memorial Day weekend this year than last, but they’ll be watching what they spend when they do it.
A Numerator survey finds that 75 percent of Americans plan to celebrate the holiday this year. Eleven percent of those did not participate in Memorial Day activities in 2022.
Fifty-nine percent plan to grill or barbeque over the weekend and 42 percent will attend or host a gathering for family and/or friends. Nineteen percent will participate in recreational activities and a similar percentage will take time to remember a loved one who has died. Thirteen percent will attend a public celebration and 12 percent will watch fireworks. All of 2023’s numbers are higher than last year.
Americans are, for the most part, planning to stick close to home this weekend. Forty-nine percent who plan to celebrate will spend at least some of that time at home. Twenty-four percent say they will limit their travel to within an hour of their homes and eight percent say they will travel a few hours or more to get to their destinations. Gen Z and Millennials are twice as likely as other generations to hit the road for longer trips this weekend.
Consumers are looking to cut costs this year with 87 percent planning to spend the same or less than they did in 2022.
Eighty-four percent say that inflation will impact how much they spend. Saving money is a priority for many with:
- Fifty-four percent planning to buy goods on sale;
- Twenty-eight percent planning to use more coupons;
- Twenty percent planning to switch to store brands;
- Seventeen percent planning to shop at dollar or discount stores.
Food and beverage retailers will reap the biggest benefits from the holiday with 83 percent planning to buy food, 46 percent planning to purchase alcoholic beverages and 35 percent intending to buy non-alcoholic drinks.
Sixteen percent are going to buy party supplies and 11 percent decorations.
Seven percent will purchase games/activities, four percent will buy clothing and three percent plan to get a gift.
Most retailers are touting significant savings to drive customers into stores this weekend. Walmart, which promises to be a major beneficiary of this year’s Memorial Day weekend trends, is promoting a basket of grilling-related products at prices below what it charged in 2022. The offer lasts through July 15.
Discussion Questions
DISCUSSION QUESTIONS: How well prepared are retailers for the start of the summer sales period? How do you expect the season to progress from Memorial Day to July 4th and on to the back-to-school period?
Poll
Loading …BrainTrust
Gene Detroyer
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
Patricia Vekich Waldron
Contributing Editor, RetailWire; Founder and CEO, Vision First
I expect this to be a rather muted Memorial Day for retail. While many will shop, all of our consumer survey data show that most will be sticking closely to planned purchases and their spending will be reliant on them receiving big discounts and good deals. The one area that is more favorable is travel and leisure – both of which sit largely outside of core retail. This represents an ongoing shift from people buying things to prioritizing experiences.
For some, I think Memorial Day has arrived more quickly than in the past. Why?
1) Above-average temperatures have been projected to persist and with that there is an anticipation of summer.
2) With pronouncements of the end of the COVID-19 pandemic, there was a collective sigh of relief that caused an additional return to normalcy.
3) The economy is causing some to adjust their plans and/or purchase earlier, favor discounted prices, or simply stock-up prior to the holiday.
Retailers continue to be pressured by lingering effects of supply chain disruption, ongoing labor challenges, and the dark cloud hovering over the U.S. debt ceiling. Factors such as these also put shopper behavior into a tail spin. I believe retailers feel they are as ready as they can be … but I envision some reeling to follow this weekend and extend through July 4 as many struggle to regain their footing.
I agree. Retailers are as ready as they are going to be. While supply chain issues are better than last year, people are going to travel more, and finally take that long awaited holiday- discretionary spend is still limited due to economic worries, the best we can hope is that something positive comes from this holiday and the next(4th of July).
There’s been turmoil in the retail world over the past three years with the pandemic, economy, and supply chain. It has been a struggle, to say the least, for manufacturers and retailers to keep the shelves full. Shoppers have, unfortunately, become accustomed to disappointment. When products are constantly out of stock, it means an immediate loss of sales. It’s especially damaging if there is no indication of when items will be back in stock and available for purchase. So, it’s in everyone’s best interest to greet shoppers with fully stocked shelves. This Memorial Day and Back to School should be in good shape as pricing has come down, especially in the all-important meat category.
Retailers appear ready to go for the start of the holiday season. Consumers staying close to home suggest that they will be stocking up on food, plants, home decorations, and so on. The test for retailers is how they have adapted in a supply chain-constrained world to ensure that they can meet consumer demand. This summer will be one of the first tests of that resiliency.
With the continued uncertainty in the global economy, relentless inflation, job security concerns, the war in Ukraine, and an overall consumer confidence dip, we should expect a marginal sales performance over the Memorial Day weekend. There has been a significant shift to conscious consumerism, where customers are buying more essential items and focusing more on spending on experiences, including travel, restaurants, and concerts, rather than more products.
Thankfully the supply chain disruptions have stabilized, and retailers are well-positioned for steady sales growth throughout the summer. Several retail sectors, including luxury, off-price, and dollar stores, will thrive despite any economic headwinds this Summer. It will be interesting to see how things play out in the coming weeks and months.
Pandemics. Then inflation. If the last few years have taught us anything, over-the-top celebrations are a thing of the past. There is a greater appreciation of just enjoying the opportunity.
Retailers should be ready for a repeat of last summer. The real question is if less emphasis on holidays (all holidays) will become the new normal.
“Well prepared” begs a long list of questions. A simple question might be about inventory levels and solved supply chain issues. A more complicated question looks at how the retailer is evolving to meet changing customer expectation. Walmart is succeeding. Express isn’t. But the one I find most interesting is Abercrombie & Fitch. Their recently announced numbers suggest they are not just ready, but are again ahead of the curve in evolving to a new attitude/aesthetic and the role they have in their customers lives. It’s one of the most dramatic transformations I have seen in a long while.
I except modest celebrations for this holiday and summer season. Hopefully retailers will be as creative as WMT with their pre-packaged grilling kit. And given the pent up demand, I expect more travel as consumers who can afford it will take trips which were postponed by the pandemic. This means hospitality and specialty retailers in tourist areas should prepare accordingly
Celebrate ?? How bout we commemorate it ??
I don’t see anything unusual about the current period; in fact,
between elections and past the Pandemic, this summer
might be gloriously uneventful.
Stores appear well stocked with summer-themed merchandising aplenty. Consumers on the other hand are more frugal in their spending, as they tighten their purse strings seeking deals wherever they can find them.
Most retailers look to have hit their stride, as much as they can even in this economy. Travel to far off destinations, entertaining and good food at home seem to have hit the UP button. With graduations, vacations and parties coming up, we’ll know by late summer how retail has been delivering.
When the data comes back for Memorial Day 2023 I think it will look like a more standard/predictable holiday than Memorial Day 2020-2022 with pandemic uncertainty & supply chain shortages. Inflation impact will be noticeable but consumers have already started trading down & searching out promotional incentives, well in advance of Memorial Day 2023.