Is Black Friday “Over?” JDA Survey Reveals Half of Consumers Are Not Planning to Shop Black Friday This Holiday Season

JDA’s 2016 Consumer Survey reveals that year round discounting by
retailers and new e-commerce sales days have “killed” Black Friday’s
appeal and consumers are over it

SCOTTSDALE, Ariz.–(BUSINESS WIRE)–The convenience and proliferation of year-round e-commerce sales and
discounting is causing consumers to place much less emphasis on
traditional Black Friday sales. In the second
annual JDA Consumer Survey
of more than 1,000 U.S. consumers
conducted by JDA
Software Group, Inc
., nearly 3 in 4 respondents (73 percent) say
they prefer to do their holiday shopping outside of the holiday season,
during e-commerce sales, such as Amazon Prime Day (tweet
this
). Forty-seven percent of respondents plan to skip Black Friday
or Cyber Monday altogether this year (tweet
this
).

Additionally, among the respondents who shopped primarily in-store for
Black Friday deals in 2015, 34 percent are changing their behavior;
reporting that this year they plan to shop equally online and in-store
(20 percent), or even primarily online (31 percent) (tweet
this
).

“Consumers continue to be less influenced by the Black Friday holiday
deals and are expecting retailers to provide them with more personalized
options throughout the year,” said Jim Prewitt, vice president of retail
industry strategy at JDA Software. “Amazon Prime Day was a hit this
summer, it’s interesting to see how much of an impact it had on our
survey respondents and their holiday shopping plans. Its popularity will
cause many retailers to not only revisit their holiday sales strategy
but how they compete throughout the year.”

Consumers Demand Free Shipping and Easy Home Delivery

Despite retailers’ growing focus on speedy delivery options (1-hour or
next day delivery), 56 percent of consumers say cost is still the most
important factor they consider when placing an online home delivery
order. One in four consumers claim they do not shop anywhere that does
not offer free shipping (tweet
this
). Almost half of respondents (46 percent) claim they are
willing to pay for shipping for a particular priority item this holiday
season, but they generally prefer to shop with retailers who offer free
shipping (tweet
this
).

Free shipping remains such a high priority for consumers that 69 percent
of respondents have spent more than they planned, just to reach the
minimum threshold to receive free shipping (tweet
this
). This trend is particularly prevalent during the holiday
season, with 80 percent of respondents who shopped primarily online
during Black Friday/Cyber Monday last year claiming that they spent more
than they intended in order to meet a free shipping threshold.

Retailers and e-commerce seem to be improving when it comes to home
deliveries, with 75 percent of consumers reporting they have not
experienced an issue in the last 12 months. However, there is still room
for improvement and one of the most common errors consumers report
experiencing is also the most intolerable. Of those who did have an
issue in the last 12 months, 29 percent of respondents said they did not
receive an item and the retailer/delivery company claimed the delivery
was made (tweet
this
). This is interesting since nearly 44 percent of all
respondents stated this was the most serious issue that would cause them
to no longer shop with a retailer. Overall, retailers are more likely to
be blamed for any home delivery issues (55 percent) over shipping
companies (45 percent) (tweet
this
).

“Given the rise in e-commerce, retailers are grappling with the demands
of an always on supply chain,” said Prewitt. “With the continued
proliferation of sales and discounting and the challenge of satisfying
consumer demand across channels, retailers and manufacturers need an
agile supply chain capable of keeping up with changing consumer behavior
to better manage inventory and profitability.”

Buy Online Pick-up in Store is a Time Saver for Consumers, When Done
Correctly

Recent holiday hiring announcements by major retailers indicate an
increased need for staff to support omni-channel fulfillment options,
like “Buy online pick-up in store” (BOPIS). This corresponds with the
survey results that found almost half of respondents (46 percent) have
used BOPIS options in the last 12 months, a nearly 33 percent increase
from the 2015 JDA Consumer Survey (tweet
this
). The convenience of the service seems to be the primary driver
of growing adoption rates, with 39 percent using it to avoid home
delivery charges and 31 percent wanting the product sooner (tweet
this
).

While BOPIS services have become more popular, retailers are still
figuring out how to streamline the process and manage mounting customer
expectations. Forty percent of the respondents who have leveraged BOPIS
in the last 12 months have experienced a problem (tweet
this
). Of those problems, staff-related issues seem to be most
predominant, with 22 percent of respondents reporting that store
associates took a long time or were unable to find their order, and 15
percent reporting a lack of dedicated BOPIS staff to assist with
pick-ups (tweet
this
).

“This year’s survey results showcase the increased demand for additional
omni-channel support,” said Prewitt. “Given the condensed holiday
calendar – Hanukkah starting on December 24 and Christmas on a Sunday –
retailers have to carefully consider their workforce planning for both
in-store, omni-channel support and additional staffing at distribution
centers.”

Consumers Want More Convenient In-Store Returns in Response to
Shipping Frustrations

Half of consumers (50 percent) find having to pay for return postage and
packaging the most frustrating part of returning online items (tweet
this
). While 80 percent of consumers have not used “Buy online
return in store” (BORIS) services in the last 12 months, 67 percent of
respondents would prefer to return an online purchase to a store than
through the mail (tweet
this
). Of those who have used BORIS services in the last 12 months,
40 percent did so to avoid the hassle of return deliveries.

“As BOPIS is continuing to grow and BORIS is emerging as a core
capability to the consumer, more retailers are more likely to merge the
lines between online and in-store for both purchases and returns,” said
Prewitt. “Of the respondents who have used BOPIS in the last 12 months,
32 percent have also used BORIS services. This only drives home the need
for retailers to increase options to meet the demands of digital
consumers who continue to influence shopping trends.”

Sales Associates Still Matter for Consumer Purchases

As more sales associates are needed for omni-channel fulfillment, they
are also needed on the store floor for overall customer service
assistance. Despite the fact that technology is continuing to influence
and change shopping behaviors, nearly 70 percent of respondents rely on
the support of in-store sales associates in some way (tweet
this
).

While additional staffing will be needed to support additional foot
traffic, the holiday shopping season overall seems to have little
bearing on shoppers’ reliance on in-store sales associates. Eighty
percent of all respondents say they do not rely on sales associates any
more than usual during the holiday season.

Survey Methodology:

JDA collected responses from 1,076 US-based consumers, 18-years and
older, via a third-party provider to determine the findings of its 2016
Consumer Survey. Among those surveyed, 53 percent were female and median
income was recorded between $50,000 and $74,999.

Additional Resources:

  • Access the full survey findings from the JDA 2016 Consumer Survey here
    and learn more:

    • Watch this video with JDA’s Lee Gill as he discusses the survey
      results
    • Download the JDA 2016 Consumer Survey infographic
  • Read the JDA Supply Chain Nation blog on today’s survey results here

Tweet this: Is
Black Friday Over? The @JDASoftware Consumer Survey sheds light #retail
trends: #JDASurvey http://bit.ly/2ep2e8F

About JDA Software Group, Inc.

JDA Software is the leading provider of seamless supply chain planning
and execution solutions for retailers, manufacturers, logistics
providers and wholesale distributors. Our unmatched solution portfolio
enables our clients to reduce costs, increase profitability and improve
visibility so they can deliver on customer promises every time. More
than 4,000 global customers run JDA, including 78 of the top 100
retailers, 78 of the top 100 consumer goods companies, and 8 of the top
10 3PLs. With JDA, you can plan to deliver. www.jda.com

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