Merry Christmas from Main Street!
Greetings from Orlando where I just returned from a walk down Main Street Disney where the snowflakes falling were real and the stores and sidewalks are all crowded with happy people enjoy a clear brisk night filled with parades, music and laughter. Sounds like I’m on the Hallmark Channel. But it’s true. I kept saying “Recession? What Recession?” Watching the thousands of families who paid full price (no weekend specials or lowest prices of the season here) to visit Mickey’s Very Merry Christmas (not Holiday) Party really put my entire family in the right spirit. The next morning a trip to the Marketplace shops in Lake Buena Vista had the same atmosphere without any admission price. The stores were crowded. The restaurants were bustling and provided specialties of the season. . And generally, there was a really good feeling in the streets.
Back at home, the headlines brought me back to reality with the sales reports showing that the holidays were not likely to save the year for the nation’s retailers. However, there are some who continue with their branding efforts and restraints on the “lowest prices of the day” events that seem to be in every day’s newspapers (which by the way aren’t doing so well either.) Wal-Mart has taken its “Save Money. Live Better.” Campaign to the airwaves more aggressively than I have seen in a few years and the messages are on target, friendly and fun. They have become the #1 voice of retail during this season and have overpowered the overwhelming amount of print from stores like Penney’s and Kohl’s and their sales trend shows it’s working The store experience is vastly improved with strong merchandising and displays highlighting the low prices instead of being hidden by the “50% Off” and 70% Clearance” banners that I see in most department stores.
Best Buy, while recently announcing cuts in labor to offset a severe drop in profits, has also been aggressive on the air with real associates talking about real savings for the customers as well as the excitement of selling the latest and greatest in electronics. The stores are bustling with a lot of people who are avoiding the Circuit City across the street like there’s a plague set in. There is. It’s called Chapter 11. Even ToysRUs has gone back to basics with its messages that assure you that they have the right toy for every kid on our list. Costco doesn’t need to advertise to make shopping an exciting event for their loyal—and I mean loyal—customers who know this is the place for everything from Sony Bravia’s to Sterling Cabernets and they continue to do it well. Sam’s Club once again had the best looking print ad insert in Thanksgiving Day’s paper with dramatic photography, understated prices (the price points were great however), and like Costco they provide a celebration in sales in more customer friendly layouts.
You also have to give Macy’s credit for trying to get back to the thought that Macy’s is Christmas shopping to many of us and has been for many years. Reviving the famous “Yes Virginia, there is a Santa Claus” editorial from many years ago, Macy’s ran a great anthology spot showing how Macy’s has been a part of our lives and show business for decades. The event to get children to write a letter to Santa with their Christmas wishes and thereby making a donation to the Make A Wish foundation was the kind of things that made department stores an important part of our holiday traditions for years. Unfortunately, they no longer have that special-ness that drove their success. Macy’s results have been disappointing, but their effort is truly noteworthy. Even the spot with Martha, Michael, P Diddy et al, didn’t ruin their campaign to make us wish there were more quality marketing programs this time of year.
So before reality sets in, my hope is that the retail world will get back to doing truly breakthrough marketing in the year to come and that our new leadership in the nation’s capital will bring us hope and optimism that’s needed more than ever.
Merry Christmas
Ken
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