Every year companies are required to shift their efforts to target the ever-changing consumer trends to achieve a successful holiday shopping season. The Deloitte Insights Consumer Industry Center conducted cutting edge research in their Deloitte 2019 Holiday Retail Survey to best determine where companies should focus their energy to achieve superior business results. Smart Warehousing has constructed a consumer profile to help make this year’s shopping season one for the books.
1.) Steady Consumer Spend
This year, consumers are predicted to spend $1,496 per household. Projected consumer holiday spend has had a 5.4% compound annual growth rate since 2012. Consumers are anticipating spending the same, if not more, than last year, yet their outlook on their future household finances have dropped 13% from 2018.
2.) Price, Product & Convenience
Consumers continue to make price a prime deciding factor while holiday shopping, but product quality and variety rank even higher. As competition increases with product deals and assortment, convenience rises as a prime differentiating factor, especially in online stores.
3.) Free Holiday Shipping
With the growing rise in online shopping, we are all aware of consumer’s shipping expectations, but which do they value more – fast or free shipping? Deloitte found that 85% of consumers prefer free shipping over fast shipping. Of that, 80% of shoppers who prefer free shipping are willing to wait three or more days to receive their order, while half of shoppers intend to use the buy-online-pick-up-in-store option.
4.) Increase in Experiences
Holiday spend over the last five years has seen an increase in “experiences” over gifts and total other spend. These experiences include travel, dining out, entertaining, and hotel stay. In addition to experiences, the top gifts include clothing, gift cards and toys.
5.) Online Sales Rising
This holiday season, e-commerce sales have been forecasted to grow about 14 – 18%, which is higher than last year. Even with the growth of online spending, the in-store shopping experience remains to be a preferred method among many consumers. Over 2/3 of holiday shoppers plan to research products online, then purchase those gifts in-store. In addition, more than half will first research in-store and then buy online.
6.) High Spending Holiday Shoppers
High spenders this year plan to spend over $2,100, which is 60% of total holiday spend. Most of the high spenders are over age 40 and purchase items such as clothing, gift cards, and books for spouses and children. Low spenders plan to spend around $305 or less. High spenders are more likely to shop using smartphones and other technology.
7.) Toy Stores on the Decline
For 2019, 2/3 of shoppers intend to shop online, while the other half intend to visit a mass merchant. Online shops and mass merchants continue to be the two most popular retail formats for holiday shopping. Toy stores are no longer a preferred retail format for holiday shopping, but toys continue to remain a top gift category through internet and mass merchant retailers.
It is no surprise that the retail industry and consumer trends continue to change, but adapting to these current shopping preferences will secure your company a successful holiday shopping season. Smart Warehousing can help your business navigate the holiday retail industry and arm you with a logistics partner who cares. Take control of the holidays with Smart Warehousing – reach out to one of our Account Executives at (913) 888-3222, firstname.lastname@example.org or request a quote here.