ClickZ Walmart Insights Newsletter - 11.14.2024

PLUS: Walmart’s Black Friday campaign spoofs soap operas to sell big

Author

Priscilla Soedarpo
November 14, 2024

Niche Nuggets 🔎

Walmart

Walmart's recent decision to significantly reduce its Christmas inventory ahead of the holiday season marks a strategic shift in its business operations. Historically, Walmart has been synonymous with the holiday shopping experience, offering a vast array of festive products at competitive prices. However, this year, the retail giant has opted for a more conservative approach, slashing its Christmas product shipments by nearly two-thirds compared to the previous year. This move, while surprising, aligns with Walmart's broader strategy of optimizing inventory management to enhance profitability.

The reduction in Christmas inventory is not an isolated incident but part of a trend that Walmart has quietly embraced over the past few years. By focusing on maintaining healthy in-stock levels and reducing clearance items, Walmart aims to streamline its operations and prepare for future seasons more efficiently. This approach is supported by Walmart Data Ventures, which leverages data analytics to monitor consumer behavior and inventory trends, ensuring a more targeted and effective inventory mix.

Despite the cutback, Walmart remains optimistic about the upcoming holiday season. The company's focus on back-to-school inventory and sales, as highlighted in its recent earnings call, suggests a strategic pivot towards more predictable and profitable segments. As Walmart prepares to release its third-quarter earnings, the retail industry keenly anticipates further insights into its holiday strategy and projections.

Walmart is poised to lead in retail technology by investing in smart carts, 2D barcodes, and AI to enhance customer experience and supply chain efficiency. Experts predict further automation and small store formats. These innovations aim to improve service, streamline operations, and offer valuable insights to vendors.

Walmart

Walmart's Black Friday campaign creatively merges advertising with entertainment through a 10-part series, "Deals of Desire". This series spoofs various film genres, starting with a soap opera featuring Lisa Rinna. The campaign aims to engage shoppers with nostalgic storytelling while promoting Black Friday and Cyber Monday deals.

Walmart is locking up everyday items to deter theft, while Starbucks aims for quicker service under new CEO Brian Niccol. Amazon focuses on low-cost essentials, and TGI Fridays faces bankruptcy challenges. Trump's proposed tariffs could impact consumer spending and brand prices. Dollar Tree's CEO resigns for health reasons.

Leading Voices 📣

With the election now behind us, the whopping 44% of consumers who reported delaying purchases pre-election may finally be ready to open their wallets. 

Black Friday and Cyber Monday could be bigger than ever as shoppers prepare to make these ‘revenge purchases.’ This is a prime opportunity for brands to capture pent-up demand.

In this article, Jamie Bolton shares 3 tips to make the most of this opportunity:

📉 Integrate Lower-Competition Channels: Platforms like Snapchat have less competition and lower CPMs, offering low-hanging conversion opportunities.

🎯 Consider TikTok for Efficiency: Last year, TikTok saw the biggest month-over-month jump in ROAS in November, making it a highly efficient tool for BFCM success.

⏳ Strategically Time Ad Spend: 2023 data shows strong results from increasing spend at the start of Black Friday week, but the best approach depends on your budget and goals. (Get a full guide to three timing strategies in Fospha’s BFCM report).

For a closer look at the data behind Jamie’s top tips for BFCM 2024, check out the full article.

Luke Jonas on LinkedIn: Going Global in 2025

Although Black Friday is just around the corner, savvy brands have half their mind on next year.

With economic challenges in the UK, and a growing opportunity in the US/EU, many retailers are asking: how can we mitigate the risk of our home market?

Performance Pulse 📈

Marketers should focus on creating emotionally resonant holiday campaigns that align with consumer behaviors. By prioritizing engagement and building brand loyalty, they can navigate the shortened holiday season effectively. Continuous engagement and innovative strategies, rather than early promotions, are key to long-term success and consumer connection.

BigSummit emphasized the importance of multi-channel strategies for eCommerce success. Brands should engage consumers across various platforms, manage product assortment, and adapt to economic pressures. Social shopping, especially on TikTok, offers new opportunities. Understanding consumer behavior and forming strategic partnerships are crucial for navigating the evolving eCommerce landscape.

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