“We expect the broader marketplace to be more promotional through the end of the holiday season,” Harmit Singh, the chief financial officer at Levi Strauss, said in an earnings call this month.
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Dave Kimbell, the chief executive of Ulta Beauty, said his company would be pushing its customer loyalty program and promotional events like Holiday Beauty Blitz, which includes weekly sales prices on makeup and skin care of up to 50 percent.
“This year, we have some competing influences versus the last couple of years,” Mr. Kimbell said in an interview. “We know that consumers are adjusting to economic changes and inflationary pressures more broadly. We think that’s going to be the case this holiday.”
Apparel-based retailers are testing out new ways to convince people to spend, and through deals that are often even earlier than normal. Some of this is because of the excess inventory that has been worrying both executives and investors. But shoppers have also indicated that seeing a huge discount on an item they want is paramount when considering whether to make the purchase.
Last week, Amazon held a second Prime Day, the first time it has offered the site-wide sale twice in a year. Target extended its price match guarantee longer than usual, when it rolled out its early holiday deal event this month. Walmart is offering members of its subscription program the option to have their returns picked up at their doorsteps, and it lengthened the window of when a shopper can return an item. Kohl’s created a “Bricktober” event, which aims to double the amount of Lego toys it sells and includes up to 20 percent discounts on some toy brands throughout the month. On Oct. 6, the department store chain also began to put a different item on sale every day, something it will do through Christmas. Best Buy is launching its Black Friday deals on Oct. 24.
Earlier holiday sales are not new, but retailers have had different rationales for using them. In 2020, when social distancing was top of mind, the October deals were billed as a way to prevent a mad dash to stores on peak shopping days like Black Friday. In 2021, as the reality of the supply chain logjam grew more apparent, retailers implored the public to shop early to avoid the possibility that gifts wouldn’t make it under the Christmas tree in time.
This year, the early deals could help retailers get rid of some of their excess inventory and give them insight into what is selling during the season, said Mr. Silverman of Fitch Ratings. Retailers also want to sell to shoppers earlier because they are aware that wallets may tighten as the season goes on.