Of all the times of the year, the fourth quarter (or, typically, November through January) can be the most frenzied period.
Though it tends to be a boon for retailers — consumer spending is high ahead of the holiday season and many Americans travel to see family — it can also be chaotic and stressful for budget-conscious shoppers.
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In fact, according to the 2023 Deloitte holiday retail survey, consumers plan to spend an average of $1,652 this holiday season. That's far beyond prepandemic levels and the record-low spending many retailers saw in a postcovid 2021, when many folks continued to remain at home for the season and focused more on saving.
"Participation levels have been inching up since record lows in 2021; this year, 95% of consumers say they plan to purchase during the holiday season," Deloitte says. "In addition, consumers are factoring in inflation, with three-quarters expecting higher prices year over year."
Retailers must solve for this issue. They need to meet consumers where they are and capture their zest for spending without scaring them away with big prices.
"For retailers, a winning strategy may come down to driving value around key promotional events for inflation-wary customers," Deloitte suggests.
"Expected participation rates for promotional events are robust, with a quarter planning to shop on October promotional days and 66% (versus 49% in 2022) planning to shop the week of Black Friday-Cyber Monday."
In this case, retailers would be wise to have sales early — and often — in order to make Q4 as successful as possible. And Target TGT, which is just coming off of a successful Circle Week (its answer to Amazon's AMZN Prime Days), seems to be getting ready for another consumer-friendly promotion.
Target solves a difficult problem
While some retailers are closing for Thanksgiving, Target plans to cash in on the holiday frenzy by offering customers a cheap and easy solution to meal prep.
It's offering a specially packaged promotional Thanksgiving Dinner for $25, which customers can access in store, online, via drive-up, or via same-day delivery using Shipt.
The affordable and easy solution includes the following:
- Good & Gather Premium Basted Young Turkey (Frozen) – 10 lb.
- Good & Gather Russet Potatoes – 5 lb.
- Good & Gather Cut Green Beans – 14.5 oz.
- Campbell’s Cream of Mushroom Soup – 22 oz.
- Ocean Spray Jellied Cranberry Sauce – 14 oz.
- Stove Top Turkey Stuffing Mix – 6 oz.
- Heinz HomeStyle Roasted Turkey Gravy – 12 oz.
“We know our guests are looking for incredible value and ease as they get ready to celebrate Thanksgiving with their loved ones,” Target's chief of food and beverage, Rick Gomez, said in a statement.
“In addition to our Thanksgiving meal for under $25, we can reach 80% of Americans with same-day delivery with Shipt. That means you can get groceries, kitchenware from our new brand, Figmint, decor to get your home ready to host — all of it, and more, at great prices and delivered right to your door in as soon as an hour.”
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