American Express (NYSE:AXP) Encourages Holiday Spending
As the Small Business Saturday approaches, retailers ready themselves for throngs of shoppers dropping in to celebrate the weekend. It is usually seen as the Black Holiday sales season, as it gets retailers ready for the main event. Just before the end of year sales, the Small Business Saturday is a small preview of what to expect. Several local retailers are hoping that customers start their Christmas shopping at their stores, using American Express (NYSE:AXP).
Small Business Saturday has been made into a holiday, similar to Cyber Monday. The Shop.org division of the National Retail Federation has stressed the need to include e-commerce sale front into the Christmas shopping festival, so that small local independent infrastructures can share the revenue pie with the U.S., total revenue generated is $42.6 billion.
As a result of these observations, the 3/50 Project was initiated that encouraged consumers to spend $50 in three of their local businesses they relied in and observe how this has a positive impact on the economy of the region.
If consumer money is spent on small local business, it is profitable for that community. In the apex, if a consumer spends $100 at an independent retailer, community gets $68 off this amount in the form of payrolls and taxes. If the same amount is spent on a notable retailer, that is part of a chain of stores, the community gets $43 back. If the purchase is carried out on Cyber Monday, the community gets nothing back.
American Express has seized this opportunity and provides a platform of aid to small businesses and has been the sponsor of this program since 2010. This is not the first time that the credit card company has engaged in something of this sort, it has quite a rich history in this regard. While such programs help the company as well, it keeps the helpline open at all times, through its portal. It is helping the local retailers by advertising the holiday season sales on their websites and have also engaged the social media in this respect.
If the American Express (NYSE:AXP) card holders spend $10 in their local community retailers, they can get the amount back in full, or up to a sum of $30; on Saturday.
According to the statistics released by the national Retail Federation, the November and December Christmas sales are expected to raise revenue by 4.1%, summing it at $616.9 billion from the prior year total. Shop.org has estimated an even higher estimates, taking it up 11% as compared to last year, at $105 billion. This will be hard for small retailers to catch up with.
Wal-Mart (NYSE:WMT) leads the way in terms of in-store sales as well as on the e-commerce front. It is the most visited retailer on both fronts.
Wal-Mart has added to the competition by extending Black Friday to a five day stretch, and plans to open on Thanksgiving Day to make maximum sales. The local retailers managed $5.7 billion sales in 2013, which isn’t a dramatic figure.