Sharply reduced prices, free shipping, one-of-a-kind gifts, remodeled stores, self-serve technology and helpful employees are just some of the means retailers intend to use this holiday season to get consumers spending in their stores.
Patricia Pao, chief executive of the Pao Principle consultancy, also sees retailers tightly managing inventories to reduce markdowns and protect margins to the degree that is possible.
"It's going to be a more organized Christmas," she told The Dallas Morning News. "It's going to be more orchestrated, and inventories are going to be managed better. You won't see floor-to-ceiling perfume sets stacked against the wall."
Gladys Lau, senior retail industry director at Oracle, said the use of pricing optimization software will produce substantial rewards for merchants this holiday season.
"Retailers have been collecting massive amounts of information, tracking where goods sold and for how much and when they sold," she said. "Now their software tells them when they should mark it down if it hasn't sold.
"Consumers are so smart today, the retailer has to be as smart as the consumer," she added.
The approach retailers intend to take for the holiday season is already in evidence.
Wal-Mart has made announcements heralding price cuts on toys and consumer electronics, while continuing to play up other changes taking place in the company's stores.
J.C. Penney is putting its "redbox" logo on items it recommends as gifts this holiday. All "redbox" items will be available for purchase in stores, online and by catalog.
Discussion Question: Which of the following factors - free shipping, price cuts, one-of-a-kind gifts, remodeled stores, price optimization software, self-serve technology and helpful employees - do you think will be most valuable to the final bottom line performance of retailers this Christmas selling season?