‘Tis the season for holiday retail outlooks. According to Accenture’s just-released 2017 holiday retail analysis, consumers are looking to avoid the crowds and are bargain-hunting year-round, which has ramifications for retail and branded promotions. Some key findings from the report include:
Avoiding the crowds: 52% of shoppers surveyed this year are less likely to shop on Black Friday, and 42% are less likely to shop on Cyber Monday compared to previous years. Approximately two-thirds (64 percent) of those who said they don’t plan to shop on Black Friday cited the crowds of people competing for bargains as the reason.
Bargain-hunting year-round: Nearly two-thirds (64 percent) said they shop for holiday gifts throughout the year, with the rise of constant discounts like deal websites and Amazon Prime Day. more than four in 10 respondents (44 percent) cited the ability to get equally good discounts other days of the year as a reason they’re less inclined to shop on Black Friday.
Convenience rules: Consumers plan to do more than half (54%) of their holiday shopping from the comfort of their home this year rather than in person (46%).
Security concerns: 60% of shoppers are concerned about security, and nearly a third (30 percent) will avoid brands that have recently had a data security breach.
Digital personal shoppers: A majority of consumers are already using or would like to use a number of technologies that are powered by AI when shopping, including chatbots (65%), virtually trying on clothing (65%), and voice commerce systems like Google Home (68%) and Amazon Alexa (71%).
Spending strategically: A lower percentage of consumers surveyed say they’ll spend more money on holiday gifts this year. While several indicators predict holiday spending to increase, the number of respondents who said they plan to spend more this year dropped by 11%, from 44% last year to 33% this year. This could be due, in part, to the rising uncertainty of consumers’ financial circumstances: 29% of consumers in this year’s survey said they are optimistic about their financial situation coming into the holiday period, compared with 34% last year.
Gas prices are more likely than any other factor to affect consumers’ holiday spending. Gasoline prices is the main factor negatively affecting consumers’ holiday shopping spend this year, cited by more than one-third (37%) of respondents—double the number who cited that factor last year (19%). Rising food prices was cited next-most-often, by 31% of respondents this year, which is up slightly from 28% last year.
Pre-purchase research: Consistent with last year’s survey, U.S. shoppers will be doing lots of research before making holiday purchases this year. Three-quarters (76%) of respondents said they will likely ‘webroom’ – i.e., shop for a product online before purchasing it in a retail store – and approximately the same number (79%) said they plan to ‘showroom’ – i.e., visit a store to review a product before purchasing it online. In addition, more than four in five shoppers (84 percent) said they check Amazon.com before looking or buying elsewhere.
Craving inspiration: Consumers want retailers to inspire them by providing shopping ideas. Nearly two-thirds (64%) of respondents said their shopping experience would be made easier if they could get ideas for gifts for holidays and special occasions, as well as for people for whom they don’t regularly shop. More than half (54%) also cited online wish lists as another factor that would improve their shopping experience.
Shopping for experiences: ‘Experience’ gift purchases are likely to increase this year. One-third (34%) of respondents said their holiday gift-buying this year will include ‘experience’ gifts — such as certificates for restaurants, cooking classes, travel, concerts and theater tickets. In addition, 36 percent of respondents said they will spend more money on ‘experience’ gifts this year than last year, with another six in 10 (58 percent) saying they plan to spend the same amount.
“Winning over the consumer will require providing active, rather than passive, shopping inspiration,” said Standish. “For instance, by proactively offering gift recommendations for that special person, retailers can influence purchasing before consumers check out Amazon or other e-tailers. And while technology has altered the retail experience for consumers and retailers alike, retailers must not lose the human touch. Those that succeed will balance human understanding and sensibility alongside digital prowess.”
“In addition, with the rising popularity of ‘experience’ gifts, competition for wallet-share is shifting from rivals in the retail industry to new competitors in other industries, such as travel. This makes it even more imperative for retailers who want to grow — or even just maintain — their share of wallet to enhance and improve their customers’ shopping experience, whether through improved technology or the addition of new services.”
Consumers remain price-sensitive: Respondents were nearly twice as likely to say they plan to buy gift items at individual stores to get the best prices on each rather than buying them all in one place (48% vs. 25%).
Free trumps fast delivery: Respondents were more than 10 times as likely to say they’re willing to wait longer for their items to be delivered for free than to pay an additional cost for immediate delivery (53% vs. 5%).
Gift cards remain popular: More than two-thirds (71 percent) of respondents said they plan to purchase gift cards this holiday season, spending an average of $42 on each gift card.
About the research: The annual Accenture Holiday Shopping Survey offers insights into consumer buying patterns during the holiday time period, providing an indication of retail performance expectations both on the high street and online at a key time for the sector. For this year’s study, Coleman Parkes Research, on behalf of Accenture surveyed a representative sample of 1,500 U.S. consumers online in September 2017. Respondents were split evenly between Generation Zers (aged 18-20), younger millennials (21-27), older millennials (28-37), Generation Xers (38-54) and Baby Boomers (55 and older).
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