The Impacts of July 4th Through the Lens of Business Acumen

Business Acumen Element

Business Acumen Impacts

Retail and Consumer Goods:

The global economy has turned into a consumer-driven economy. This is different than just a few decades ago when it was a manufacturing-driven, labor-oriented jobs-driven economy. In order for the economy to grow at a greater rate of inflation, US holidays like the 4th of July are critical. The 4th of July sparks a surge in consumer spending as people prepare for celebrations, barbecues, family gatherings, and travel (see below).

• Increased revenue growth
•  Higher spending on promotional expenses (traditional marketing, digital marketing, etc.)
• More price discounting that affects gross margins
• Higher expectations on supply chain
• More stress on the labor market both traditional in-person and remote

Travel and Tourism:

The travel industry is making its comeback. Many reliable sources like the Wall Street Journal are reporting that we have finally hit the resurgence. The 4th of July weekend is a popular time for travel and tourism. Many people take advantage of the extended holiday to embark on vacations, visit family and friends, or explore new destinations.

•  Increased consumer spending
• Higher revenue for hotels, restaurants, and resorts
• Increased demand for service support
• More stress on the labor market can negatively impact the perception of the travel experience if the service is poor

Service Industry:

The service industry is still in disarray. Most cities around the world report that this is still an area of concern and many restaurants, bars, retail stores, and other service-dependent activities are struggling to find and retain any level of talent. There is an opportunity for restaurants, bars, and entertainment venues to experience a significant boost in business during the 4th weekend.

• Increased revenue from dining out, attending live music performances, and watching fireworks displays
•  Increased marketing spend on promotions and discounts to build awareness
• Increased expenses and cost of goods sold
• More stress on the labor market can negatively impact the perception of the travel experience if the service is poor

Advertising and Marketing:

If you follow the news about Advertising and Marketing, you know that geopolitical turmoil has roiled the marketing industry and several traditional markets like beer which is a core driver of spending during holidays. The 4th of July presents a prime opportunity for businesses to rethink their strategies, test new campaigns, and run targeted advertising and marketing promotions.

• Increased spending leveraging patriotic themes to create brand awareness, promote special offers, and engage with their audience
• Improved revenue and cash flow
• Improved sales pipelines and funnels
• Bring back lost consumers

Product Launch:

While CEOs, CFOs, and investors love “organic sales growth” – the number of increased revenues from existing products and services – they also know the future of their revenues relies on new product launches. Traditionally, the July 4th weekend means summer is in full bloom and it’s a great time to launch new products and start to gain awareness for the fall and back-to-school season that evolves into the Christmas season where significant revenues come from and can make or break a year.

• Increased revenue from new products
• The increased cost of goods sold and investments to bring new products to market
• Increased marketing and sales expenses to build awareness and drive new business

Sustainability:

Any blog post on business acumen must include some mention of sustainability. In this case, sustainability means having purposeful strategies to reduce the carbon footprint and continue to drive more recycling and other activities to support a healthier planet. July 4 is now a premiere time of year to continue to drive home the sustainability story.

• Increased investments in the sustainability messaging
• Increased investments in sustainable packaging and transportation of consumer goods
• Increased revenues for environmentally friendly products, foods, and activities