Small and Mid-Size Retailers Poised for Success in 2022 Holiday Season

Introduction

As we approach the 2022 holiday season, mixed messages about overstocked retailers, warehouse space shortages, and labor issues have created a sense of uncertainty in the retail industry. However, a recent report by Capterra reveals an unexpected twist: small and mid-size retail businesses (SMBs) are surprisingly optimistic about their prospects for the upcoming peak season. In this article, we'll explore the key findings from Capterra's 2022 Holiday Retail Preparations Survey and discuss how FreightAmigo's Digital Logistics Platform can support retailers in navigating these market conditions.

Let's delve into the data that's painting a brighter picture for SMBs this holiday season:

• 63% of surveyed SMBs anticipate holiday profit growth
• 75% believe they'll have sufficient inventory for a successful season
• 61% of retailers planning holiday advertising will increase their social media marketing spend
• 45% will offer more holiday deals this year, with 40% launching deals as early as October

SMBs: Better Positioned for Holiday Success

The survey results indicate that SMBs are in a prime position to capitalize on the holiday shopping season. Their smaller size often translates to greater flexibility and agility in responding to market changes. This adaptability is crucial in today's dynamic retail landscape.

For instance, over 45% of SMB respondents reported getting an early start on holiday inventory this year, positioning themselves well to fulfill incoming orders. This proactive approach is something we at FreightAmigo strongly advocate for, as our Digital Logistics Platform is designed to help businesses plan and execute their supply chain strategies efficiently.

FreightAmigo's Support for SMB Retailers

Our Digital Logistics Solution offers several features that can benefit SMBs during the holiday rush:

• Real-time tracking of shipments across various transportation modes
• Comparison of door-to-door freight quotes for international courier, airfreight, sea freight, rail freight, and trucking solutions
• Streamlined customs clearance, cargo insurance, and trade finance arrangements
• Automated shipment document generation

These tools can help SMBs maintain the agility they need to respond quickly to changing market conditions and customer demands during the peak season.

The Rise of Omnichannel Shopping

Another key trend highlighted in the report is the continued growth of omnichannel retail. The survey found that 68% of retailers with an omnichannel presence expect to see their profits grow this year, compared to 59% of eCommerce-only and 51% of brick-and-mortar-only retailers.

Interestingly, 63% of these omnichannel brands say they will be holding in-store promotions to help attract foot traffic to their physical locations. This strategy demonstrates the importance of integrating online and offline retail experiences.

FreightAmigo's Role in Supporting Omnichannel Strategies

Our Digital Logistics Platform is well-suited to support omnichannel retail strategies:

• Our platform provides end-to-end visibility of your supply chain, helping you manage inventory across multiple channels
• Our automated document generation can help streamline the process of managing shipments to various locations, whether they're distribution centers, stores, or directly to customers
• Our 24/7 logistics expert support ensures that you have assistance whenever you need it, helping you maintain smooth operations across all your retail channels

Targeting Gen Z for Holiday Success

The survey revealed an interesting correlation between targeting Generation Z consumers and expected holiday success. 80% of SMBs focusing on Gen Z anticipate higher seasonal profits, compared to 63% targeting millennials and 54% targeting Gen X or Boomers.

Gen Z, ranging from 8-23 years old, is entering the consumer marketplace with purchasing power and a desire to support brands that align with their values. They're also digital natives, comfortable with online shopping and social media engagement.

Leveraging Digital Platforms for Gen Z Engagement

To effectively reach Gen Z consumers, SMBs are increasing their focus on digital marketing, particularly through social media. The survey found that 73% of brands targeting Gen Z/Alpha plan to increase their social media spend for holiday advertising.

Moreover, 60% of businesses leveraging social media are shifting their focus from text-based content to short-form videos, mirroring the rise of platforms like TikTok and Instagram Reels.

At FreightAmigo, we understand the importance of digital engagement. While our focus is on logistics, our Digital Platform embodies the same principles of user-friendly, tech-savvy solutions that appeal to younger generations. We strive to make logistics as seamless and intuitive as the digital experiences Gen Z has come to expect in their daily lives.

Diverse Savings Strategies for Holiday Shoppers

The survey also highlighted how retailers are diversifying their approaches to offering savings to customers. While percentage discounts and coupons remain popular, about a third of respondents plan to engage their digital communities through exclusive deals for loyalty program members or social media followers.

Additionally, with 55% of holiday shoppers unwilling to pay for shipping on holiday gifts, many SMB retailers are offering multiple shipping options to cater to various customer preferences.

FreightAmigo's Support for Flexible Shipping Strategies

Our Digital Logistics Platform can help retailers implement flexible shipping strategies:

• Our quote comparison tool allows retailers to find the most cost-effective shipping options, potentially enabling them to offer free shipping to customers
• Our platform supports various modes of transportation, allowing retailers to choose the best option based on speed, cost, and customer preferences
• Our real-time tracking capabilities can help retailers keep customers informed about their shipments, enhancing the overall shopping experience

Ensuring Success Beyond the Holiday Season

While the focus is currently on the upcoming holiday season, it's crucial for SMBs to think beyond this peak period. Here are some key strategies for long-term success:

1. Know Your Audience

Continuously gather feedback from your customers through surveys, return processes, and social media engagement. The more you understand your customers, the better you can serve them.

2. Invest in Technology

End-to-end data visibility is crucial in today's retail landscape. Invest in a logistics tech stack that provides real-time data on every step of your supply chain. This will enable you to make informed decisions and keep customers updated on their order status.

3. Plan Ahead and Cover Your Contingencies

Diversify your suppliers to stay agile and keep items in stock. Consider various carrier options and mode shifts to avoid potential disruptions. Take advantage of Less-than Container Load (LCL) programs and use priority air freight judiciously to ensure high-priority SKUs remain in stock.

FreightAmigo: Your Partner in Long-Term Success

At FreightAmigo, we're committed to supporting your business not just during peak seasons, but throughout the year. Our Digital Logistics Platform is designed to provide the visibility, flexibility, and efficiency you need to navigate the ever-changing retail landscape.

• Our platform offers end-to-end visibility of your supply chain, helping you make informed decisions at every stage
• We provide access to a wide network of carriers and transportation modes, enabling you to diversify your logistics strategy
• Our automated systems and expert support help you streamline your operations, allowing you to focus on growing your business

Conclusion

As we approach the 2022 holiday season, SMBs have reason to be optimistic. By leveraging omnichannel strategies, targeting Gen Z effectively, and offering diverse savings options, many small and mid-size retailers are positioning themselves for success.

At FreightAmigo, we're excited to be part of this journey. Our Digital Logistics Platform is designed to support businesses of all sizes in navigating the complexities of modern logistics. From providing real-time shipment tracking to offering competitive freight quotes across multiple transportation modes, we're here to help you deliver a seamless experience to your customers this holiday season and beyond.

As you prepare for the upcoming peak season, consider how a robust Digital Logistics Solution like FreightAmigo can support your business goals. Whether you're looking to streamline your operations, reduce costs, or improve customer satisfaction, we're here to help you succeed in the ever-evolving world of retail and logistics.