DISCUSSION

Midnight Madness Goes Online

Written by George Anderson

By George Anderson

The stores may be closed, but retailers including Dick's Sporting Goods, Kohl's and Sears are offering online-only discounts during overnight hours to keep consumers shopping after-hours.

According to a Chicago Tribune report, these midnight to dawn online sales specials are still a new tactic that are easy enough to try. They are also much less expensive than keeping a store open overnight.

Don Delzell, a partner at Retail Advantage and a member of the RetailWire BrainTrust, told the paper, "I'd like to say they've done some market research that finds there's a specific shopper they're targeting in the middle of the night, but I think it's simply that the Internet is a 24/7 shopping channel. It only makes sense. In the long run, if you get more consumers then you previously had to buy your product, it boosts sales."

If there is a targeted consumer it would probably be Natalie Bednarz or someone like her. The 24-year old from Boston is one of those consumers who frequently finds herself shopping online at night. "There's nothing on TV," she told the Trib. "No one is calling me. What else am I going to do?"

Chad White, director of retail insights at the Email Experience Council, said there are few retailers taking the overnight promotion approach online. Sears, he said, is one of the most active with the retailer running "night owl" sales once every other month.

"There's clearly a market for folks who wait until the kids are asleep or night owls that can't sleep," said Chris Brathwaite, spokesperson for Sears Holdings.

Discussion Questions: Is there a significant market of consumers who for various reasons (waiting until kids are asleep, insomnia, etc.) are up late at night? Do you see a real opportunity for traditional retailers to drive incremental sales with overnight online promotions? Will these retailers capture some of the magic of home shopping networks with this approach?

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