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Santa Would Like a Word With Your Pumpkin
Santa has apparently checked his calendar and decided Halloween has had quite enough time.
Amazon, Target and Walmart are lining up overlapping October sales, inviting consumers in the United States to buy Christmas presents while still considering whether the front yard skeleton needs a companion skeleton. The pumpkin hasn’t even been carved, and already someone would like to discuss your stocking strategy.
This week’s announcements bring the holiday shopping scramble into early October. Amazon’s Prime Big Deal Days and Target Circle Deal Days run Oct. 6 and 7, and Walmart’s weeklong event begins Oct. 5.
Beneath the seasonal confusion sits a straightforward commercial contest. Who gets first crack at the household’s holiday budget? Shoppers, meanwhile, must work out whether starting sooner means spending less or simply spending for longer.
There is a perfectly sensible case for getting ahead. Find the headphones your teenager actually wants at a genuinely good price, buy them and cross a name off the list. December becomes marginally less frantic. You have time to wrap something without using a grocery bag and an apology.
For a retailer, that same transaction has another attraction. Money committed to headphones in October is money a competitor cannot easily capture for headphones in November. An early sale can settle a purchasing decision before rivals get their holiday campaigns fully underway. Santa’s workshop has become a procurement deadline.
The membership layer makes the contest more interesting. Amazon requires Prime membership. Target’s sale serves its free Circle loyalty program, while its paid Circle 360 tier gets early access to select offers Oct. 5. Even an early start now has an earlier start, available to the appropriately credentialed.
These programs give retailers a reason to bring shoppers back after the wrapping paper is gone. A household that signs up for holiday savings may return for detergent, groceries or the batteries everybody forgot. The potential prize extends beyond one discounted toy; it’s a place in the customer’s everyday shopping routine.
For customers, however, comparison shopping starts to resemble a modest administrative position. Is the price available to everyone? Does it require a membership? Is the reward a reduction in today’s bill or credit toward another purchase? Does delivery change the total? At some point, the person buying a scented candle deserves a company laptop.
Target illustrated how many calculations can accompany a checkout. Its announcement included rewards offers for new annual Circle 360 members and approved Circle credit card applicants. Those are different commitments from joining a free loyalty program. A useful offer depends on whether the customer will use the associated benefits, not simply how festive the promotional banner looks.
There are tools for the homework. Amazon said shoppers can check up to 365 days of price history on hundreds of millions of products. That helps put a discount in context. It cannot establish whether your brother needs another countertop appliance, although the family group chat may have evidence.
The larger trap is confusing a lower price with a smaller holiday bill. Consider a shopper who planned to spend $100 on a gift and buys it for $75. Stop there, and the saving is real. Add a $40 “little extra” because the first purchase felt so responsible, and the holiday budget has grown to $115. Excellent bargain hunting can coexist with unfortunate arithmetic.
Starting in October also leaves plenty of time to forget what is already hiding in the closet. The early gift becomes the first gift. Then comes the Black Friday gift, followed by the December discovery that the recipient has developed an entirely different personality.
Retailers have every reason to keep the invitations coming. Consumers get the best of this expanded calendar when they can declare themselves finished. Buy the planned present, record the spending and resist appointing every subsequent sale to the holiday planning committee.
If the skeleton really does need an accessory, give it a Santa hat. At least somebody in the household will get two holidays out of one purchase.
Source: PYMNTS.com