On December 11th, I predicted that retailers would whine about how they missed the mark on sales this holiday season, We're Cheaper Than You. Well, I hate to say it, but it is happening. Sales are not even close to what was predicted for 2006 Holiday season. None of the big retailers are excited about their results and of course are pointing to their reduction in prices to be competitive, weather, energy prices and the fact that Santa's sleigh wasn't flying fast enough.
Flat screen TV's, Game consoles, Ipod's and other electronics were the hot sellers again this year. Hey, who is talking about this big fat elephant in the room? None of these big retailers have merchandise that differentiates or excites consumers? All of their shopping experiences suck beyond belief and they all have trained consumers to wait until the last minute during the holiday season for the biggest discounts eroding their margins. Is it any wonder that Tiffany and Coach executives are sitting pretty after this holiday? They had great seasons - they offer very cool merchandise at full price within a compelling store experience. Their brands have cache and their merchandise evolves with trends while staying true to their core product lines. They simply get it.
Brands are driving retail sales and innovation, the new Vizio TV brand, Apple, Sony and Nintendo. The retailers that simply carry this merchandise sits between the consumer and the brand. They are adding no value for innovation. When are we as marketers going to hear the bell? Every single year the price battle happens, every single year prices drop like clockwork on bad merchandise, while the cool stuff stays steady. Did you see a PS3 below $599? I think not.
Ok, off to the store to buy stuff at 75% off.
Wirestone is uniquely ranked on both Top 50 lists for Advertising Age's Integrated Marketing and Interactive Agencies. We're also in the top 2% of marketing services agencies in the United States ranked by billings. 
