The busiest retail season of the year is fast approaching. Consumers will soon be thinking of Thanksgiving, Black Friday, Cyber Monday, Christmas, New Year’s Eve and lots of holiday entertaining. Those thoughts turn into purchases – gifts, electronics, appliances, home décor and more.
Fact: 18% of Americans will start shopping for the holidays in September… or earlier!1
Retailers should not wait until November to prepare for retail success. They must begin now to consider their inventory, marketing and customer payment options if they are to maximize holiday retail profits. It is important to understand consumer trends and behavior, so it helps to have knowledgeable business partners available to help you.
“Consumers respond to value and convenience. They want good deals and they appreciate retailers who make shopping and purchasing easy,” said Rob Krause, SVP and Payment Solution’s General Manager at Synchrony, the largest issuer of private label credit cards in the U.S. “The holidays are a busy time of year, so it’s important to offer the merchandise and services they need, and to help make the purchase easy and affordable.”
Fact: Holiday sales can account for up to 30% of some retailers’ annual business.2
Krause noted that convenience for some consumers may mean shopping online, so a robust web presence is important for retailers. Compelling images of the coolest in-home theater setups or “smart” appliances along with payment options and fast delivery can ignite sales. How important is e-commerce these days? Recent research by the U.S. Census Bureau shows online sales growing 13.6% in the second quarter of 2019 compared to Q2 of 2018.3 The impact of your online presence is hard to overstate.
However, many consumers still prefer an in-store experience. They want to touch the merchandise, talk to a sales person and discuss payment options. Again, convenience and value are essential.
Fact: About 85% of all retail sales occur in a physical store.4
“We introduced the Synchrony HOME Credit Card earlier this year,” explained Krause. “It allows the consumer to finance purchases such as electronics, appliances, furniture and décor at more than a million locations nationwide with a single credit card. The Synchrony HOME Credit Card provides 2% cash back on purchases under $299 paid as a statement credit6. The card also has no annual fee, so it adds real value to the purchase.”
Financing can be a pivotal marketing tool during the holidays. A strong financing program attracts consumers who may be strapped for cash because of all the holiday shopping. You are meeting an important customer need by providing payment flexibility and opening the door for more sales.
Fact: 90% of Synchrony card holders making appliance purchases feel promotional financing makes their large purchases more affordable.5
Empowering customers with choices and financing options can open the door for more sales. Your customers are busy, just as busy as you are, so it pays to make their shopping experience easy. Chances are, many of them are thinking of the holidays right now, so begin preparing immediately for strong holiday sales.
Synchrony (NYSE: SYF) is a premier consumer financial services company delivering customized financing programs across key industries including retail, health, auto, travel and home, along with award-winning consumer banking products. With more than $140 billion in sales financed and 80.3 million active accounts, Synchrony brings deep industry expertise, actionable data insights, innovative solutions and differentiated digital experiences to improve the success of every business we serve and the quality of each life we touch.
5Synchrony’s Seventh Major Purchase Consumer Study, 2019, Appliances
6Net card purchases (purchases minus returns and adjustments) less than $299 made with the Synchrony HOME credit card will earn 2% cash back paid as a statement credit. Statement credits will be issued within 1-2 billing cycles after qualifying purchase is made. Fees and interest charges do not qualify for rewards. Account must remain open, in good standing, and not become delinquent. Subject to credit approval. We reserve the right to discontinue or alter the terms of this offer at any time.