How Retailers Promote Black Friday & Cyber Monday Review of Black Friday & Cyber Monday Promotions December, 2011 What You Need To Know • At many key retailers, Black Friday “Door Buster” events started earlier with some stores opening Thursday (Thanksgiving) evening. • Black Friday is the top promoted week of the year for many categories. This one week represents 5.0% of annual electronics ads, 4.9% of apparel ads, 5.2% of housewares ads, and 7.1% of toy ads. • Kmart ran more Black Friday ads than any other retailer. Kohl’s and Sears rounded out the top 3. • While Best Buy ran the most electronics ads for Black Friday, Shopko and Kmart both ran more electronics ads than Target & Walmart. • Apparel products represent only 17.0% of circular ads for general merchandise, but lead all segments with 27.2% of retailer web promotions. • Meijer ran almost 5 times as many web promotions than the second highest retailer, Best Buy. • Over 1/3 of the web promotion ad blocks run by Meijer were for Apparel. 2 Notable Black Friday Opening Times Retailer Opening Day/Time 2011 Opening Day/Time 2010 Toys R us Thursday @ 9:30 pm Thursday @ 10:00 pm Walmart Thursday @ 10:00 pm Friday @ 12:00 am Target Thursday @ 11:00 pm Friday @ 4:00 am Kohls Friday @ 12:00 am Friday @ 3:00 am Best Buy Friday @ 12:00 am Friday @ 5:00 am Sears Friday @ 4:00 am Friday @ 4:00 am JC Penney Friday @ 4:00 am Friday @ 4:00 am Kmart Friday @ 5:00 am (also open 6 am-9 pm on Thursday) Friday @ 5:00 am 3 Some of the Black Friday Deals Hhgregg 11/23/11 ShopRite 11/26/11 Best Buy 11/23/11 Net Price $155 Target 11/23/11 Rite Aid 11/29/11 4 Weekly Share of Weighted Ads - Electronics Share of 52 Week Ad Support 6.0% The week of Black Friday represents 5% of annual retail ad support for Electronics – more than 2 times the ads of an average week. 5.0% 4.0% 3.0% Christmas 2010 Black Friday 2011 Father’s Day Super Bowl 2.0% 1.0% 0.0% Source: ECRM, 52 Weeks Ending 11/26/2011 5 Weekly Share of Weighted Ads - Apparel Share of 52 Week Ad Support 6.0% Black Friday 2011 5.0% 4.0% 3.0% Father’s Day Christmas 2010 Back to School Easter 2.0% 1.0% 0.0% Source: ECRM, 52 Weeks Ending 11/26/2011 6 Weekly Share of Weighted Housewares Ads Share of Weighted Housewares Ads Black Friday 2011 6.0% 5.0% Labor Day 4.0% 3.0% Christmas 2010 Mother’s Day 2.0% 1.0% 0.0% Source: ECRM, 52 Weeks Ending 11/26/2011 7 Weekly Share of Weighted Toy Ads Share of Weighted Toy Ads 18.0% Toy Books Released for Kmart, Walmart, & Target 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% Christmas 2010 Black Friday 2011 Easter 4.0% 2.0% 0.0% Source: ECRM, 52 Weeks Ending 11/26/2011 Excludes Toy-R-Us 8 Percent of Promotions By Product Department Share of Retail Ad Support 84.6% General Merchandise 81.3% 13.0% HBC 16.1% There were 1584 less General Merchandise ad blocks than last year. 2010 2011 2.3% Grocery 2.5% * Traditional Grocery Retailers are not included. Source: ECRM Week Ending 11/26/2011 vs. Yr. Ago Excludes Unbranded Promos & Toy-R-Us 9 Percent of General Merchandise Promotions By Product Segment Share of General Merchandise Retail Ad Support Housewares 18.8% Electronics 17.1% Apparel 17.0% Sports Equipment 16.2% Toys 11.3% School & Office Supplies 8.8% Hardware Home Recreation&Fitness Other Automotive 2011 4.2% 2.6% 2.2% 1.9% Source: ECRM Week Ending 11/26/2011 Excludes Unbranded Promos & Toy-R-Us 10 Year/Year Change in Top General Merchandise Segments Change From 2010 20% 9% 7% 1% -5% -17% Housewares Electronics Apparel Sports Equipment Toys School & Office Supplies Source: ECRM Week Ending 11/26/2011 vs. Yr. Ago Excludes Unbranded Promos & Toys-R-Us 11 Categories with the Most Black Friday Week Promos Category Share of General Merchandise Retail Ad Support Indoor/Outdoor Sport 10.4% TV&Video Electronics 8.1% Computers 6.9% Kitchen&Tabletop 6.9% Women's Apparel 5.6% Electronic Toys 5.3% Large Appliances 5.0% Men's Apparel Photo Audio Electronics 2011 4.6% 3.8% 3.4% Source: ECRM Week Ending 11/26/2011 12 Excludes Unbranded Promos & Toys-R-Us Year/Year Change in Top General Merchandise Categories Change From 2010 14% 13% 5% -3% -9% -26% Indoor/Outdoor Sporting Goods TV&Video Electronics Computers Kitchen&Tabletop Women's Apparel Electronic Toys Appliances Source: ECRM Week Ending 11/26/2011 vs. Yr. Ago 13 Excludes Unbranded Promos & Toys-R-Us Retailers Running the Most Ads Black Friday Week Ad Blocks WE 11/27/2010 WE 11/26/2011 Change Kmart 840 870 +30 Kohl's 751 650 -101 Sears Shoppers Drug Mart Shopko Stores Big 5 Sporting Goods Best Buy 566 643 +77 313 528 +216 470 502 +33 354 497 +143 420 487 +67 Meijer 604 480 -124 Macy's 457 440 -18 Target Stores 305 334 +29 Source: ECRM Week Ending 11/26/2011 vs. Yr. Ago 14 Excludes Unbranded Promos & Toys-R-Us Retailer Support of the Apparel Category Apparel Category Brand Features Kohl's 706 Big 5 Sporting Goods 277 Kmart 271 Macy's JC Penney Dick's Sporting Goods 210 207 197 Shopko Stores 374 364 354 344 374 298 340 2010 2011 135 178 147 165 Meijer Sears Zellers 844 75 83 Source: ECRM Week Ending 11/26/2011 vs. Yr. Ago 15 Excludes Unbranded Promos & Toys-R-Us Retailer Support of the Electronics Category Electronics Category Brand Features 323 Best Buy 349 202 183 Shopko Stores 153 174 Kmart 114 hhgregg 63 Walmart-US 113 77 Target Stores Sears 95 85 84 Meijer OfficeMax 38 Staples 42 32 112 112 140 2010 2011 59 Source: ECRM Week Ending 11/26/2011 vs. Yr. Ago 16 Excludes Unbranded Promos & Toys-R-Us Retailer Support of the Housewares Category Housewares Category Brand Features Kohl's 219 155 Sears 135 Macy's 120 115 112 JC Penney Lowe's 59 Meijer Zellers Target Stores 75 52 184 164 157 159 Kmart Shopko Stores 273 138 2010 2011 103 99 72 61 67 Source: ECRM Week Ending 11/26/2011 vs. Yr. Ago Excludes Unbranded Promos & Toys-R-Us 17 Retailer Support of the Toys Category Toys Category Brand Features 291 Kohl's Kmart Target Stores 207 Meijer 143 81 Shopko Stores Walmart-US Best Buy Zellers Rite Aid Macy's 67 45 58 60 57 95 111 92 102 87 141 382 283 259 250 258 2010 2011 Source: ECRM Week Ending 11/26/2011 vs. Yr. Ago Excludes Unbranded Promos & Toy-R-Us 18 Department Ad Support – Web Promos vs. Circular Promos Share of Ad Support 84.5% General Merchandise 64.6% Web Promotions 9.1% Circular Promotions HBC 17.9% The General Merchandise department had 100% of the web promo ads if we just look at ads that started 11/27/2011 and ended 11/29/2011. 6.4% Grocery 17.6% Source: ECRM Week Ending - 12/3/2011 19 Top General Merchandise Segments – Web Promos vs. Circular Promos Share of Ad Support 27.2% Apparel 16.9% 15.7% 17.6% Housewares 13.9% 14.5% Toys 10.5% 12.0% Electronics Circular Promotions 9.1% 7.7% School & Office Supplies Sports Equipment Web Promotions 4.5% 3.6% Source: ECRM Week Ending - 12/3/2011 20 Top Supported General Merchandise Categories – Web Promos vs. Circular Promos Share of Ad Support 14.9% Apparel Accessories 4.6% 7.7% Computers 5.8% 5.2% 5.3% TV&Video Electronics Shoes Kitchen&Tabletop Appliances Women's Apparel Home Décor Electronic Toys Web Promotions 4.5% 2.4% Circular Promotions 4.3% 6.3% 3.9% 4.7% 3.8% 2.6% 3.1% 5.3% Source: ECRM Week Ending - 12/3/2011 21 Retailer Web Promo Ad Support Meijer 3009 Best Buy 601 Dollar General 353 Walmart-US 329 Top Meijer Categories Sears 270 Kmart 256 Category Ad Count Shopko Stores 225 Apparel 1,333 Office Depot 210 Toys 310 Target Stores 199 302 BJ's Wholesale Club 176 Toys - R - Us 154 JC Penney 150 Staples 140 Housewares Infant Accessories Sports Equipment Sam's Club 135 Walgreens 124 222 196 Source: ECRM Week Ending - 12/3/2011 22 Top Supported Manufacturers Web Promotions Katz Private Brand Circular Promotions 1 Procter & Gamble Company Hewlett Packard 2 Kohl's Private Brand Dollar General Private Brand 3 Nestle S.A. Samsung America Inc. 4 Unilever Seiko Instruments, Inc. 5 Mattel Toys Hasbro, Inc. 6 JCPenney Private Brand Mattel Toys 7 Sears Private Brand Step 2 Company 8 Sony Electronics Inc. Little Tikes Co. 9 Hasbro, Inc. The Coleman Company 10 7 of the top 10 manufacturers supported by web promotions were electronics or toys. Hewlett Packard Source: ECRM Week Ending - 12/3/2011 23 Target 12/11/11 Apple iPad Micro Center 12/7/11 If you wanted an iPad 2, the lowest price was not on Black Friday or Cyber Monday, but a week later at Micro Center ($449.99). Target is only $10 more but you need to spend that $40 savings at Target ($459.99). 24 Methodology • Retail ad support measured by number of ad blocks in retailer print circulars. Ad share is weighted by retailer size. • Ad counts include branded & private label products, but not unbranded. • Ad circular data includes U.S. & Canadian retailers • All traditional grocery retailers have been excluded. ECRM’s MarketGate Ad Comparisons Web Site: www.AdCompare.MarketGate.com Studies on Retail Promotions: www.PromotionalReflections.com Contacts: Scott Whalley Jason Marshall 847-482-1793 440-498-0500 scott@ecrm.marketgate.com jmarshall@ecrm.marketgate.com 25