Most US Shoppers Expect to Spend as Much or More This Holiday Season than Last Year, with Many Turning to Physical Stores for...
October 01 2019 - 12:01AM
Business Wire
13th annual holiday shopping survey finds
sustainability is high on consumers’ minds, with half planning to
opt for delivery options with a lower environment impact
The vast majority of U.S. consumers plan to spend at least as
much this year on holiday gifts as they did last year and will be
turning to stores for holiday gift inspiration, according to
results of the 13th Annual Holiday Shopping Survey from Accenture
(NYSE: ACN). The study also found a growing trend of “responsible
retail,” with shoppers more concerned about the environmental and
social impact of their purchases.
The online survey of 1,500 U.S. consumers found that Americans
expect to spend $637 on holiday shopping this year, on average,
with approximately six in seven respondents planning to spend
either the same (57%) or more (28%) than they did last year. On
average, men expect to spend approximately 15% more than women —
$685 versus $588. Gift cards and clothing/footwear topped the list
of planned purchases.
There does appear to be a level of caution among consumers this
year, however, as the percentage of those who anticipate spending
less rose slightly year on year, from 11% to 15%. The two leading
factors that respondents cited as affecting their holiday shopping
spend are rising food bills (cited by 32% of respondents) and the
desire to limit their credit card debt (31%).
Consumers still love physical stores and browsing them for
holiday gift inspiration
The survey results go against the hype surrounding the demise of
physical stores, with respondents saying they expect to do half of
their holiday shopping this year in a store or mall, on average.
Stores play an important role when it comes to inspiring shoppers’
gift ideas. In addition, consumers were significantly more likely
to say that, after seeing an item in a store, they would purchase
the item in the store rather than searching online for a better
price and purchasing online.
“While having a strong online proposition has become
table-stakes, physical stores will still play an important role in
the future,” said Jill Standish, senior managing director and head
of Accenture’s global Retail practice. “With consumers planning to
do half of their holiday shopping in-store, retailers need to
carefully plan their strategy for customer service, including
labor, assortment and allocation of inventory. With creativity and
ingenuity around the store footprint, retailers have an opportunity
to leverage the surge in holiday foot traffic not only to increase
holiday revenues but also to find those special customers who will
be the loyal ones they depend on all year.”
Perhaps not surprising, 82% of respondents cited lower prices as
the top factor that would tempt them to make an in-store purchase,
followed by special offers/discounts (77%).
“Although monetary offers are a surefire way to lure in
customers, retailers need to manage these incentives carefully, as
they can take a big chunk of profits if not managed well,” said
Lori Zumwinkle, a managing director at Accenture who leads its
Retail practice in North America. “Retailers should be using
data-driven approaches to understand the profitability of such
tactics, to ensure visibility of inventory, and to build a granular
understanding of the intersection between product, services and the
customer as they try to outmaneuver competitors during the
holidays. This is especially pertinent for gifts of clothing, given
the heightened risk of returns and the associated costs.”
Consumers are trading frills and next-day shipping for
environmental responsibility
The survey also identified how consumers are beginning to care
more about our planet. They want clear labelling that products are
made in sustainable or ethical ways, to be shown the origin of
materials and ingredients and offered the option of packaging-free
products and deliveries.
Further, half of the respondents said that, due to the negative
environmental impact of fast-shipping options — which includes the
use of planes rather than ground transportation, as well as the
shipping of multiple items separately rather than together to
expedite delivery — they would opt for delivery options with a
lower environment impact, such as slower shipping or in-store
pick-up. Consumers are now looking at the carbon footprint of the
different delivery options retailers offer.
And it’s not just environmental issues that ‘responsible’
shoppers believe retailers should consider. Retailers have a
responsibility to address wider social issues through their
business practices and working conditions, and nearly half of the
respondents (45%) said they are more likely to do their holiday
shopping with retailers that do just that.
“We have entered the era of ‘responsible retail,’ where
consumers are becoming more environmentally and socially conscious
and will increasingly turn to brands that not only talk about
responsibility but demonstrate it through their business
practices,” Standish said. “Retailers need to design their products
and their business around responsible initiatives; those already on
this path could have the edge over their competitors this holiday
season and beyond.”
Some other key findings from the survey:
- Fashion rental trend extends to the holidays. Fashion
retailers with a rental service could be set to gain this holiday
season. For instance, nearly a quarter (24%) of all respondents —
and one third (34%) of older millennials — said they would be
likely or extremely likely to rent clothes for holiday parties.
Also, with people being critical of fashion waste, vintage seems to
be “in vogue,” as nearly half (48%) of respondents said they would
consider giving second-hand clothing as gifts, and even more — 56%
— said they would welcome gifts of this kind for themselves.
- Shoppers taking steps to combat “porch piracy.”
Consumers are very aware of the rising trend in package theft, also
known as “porch piracy.” Almost one-third (29%) said they use
delivery tracking / notification apps deliveries and schedule
deliveries for dates / times when someone is home, and one-fifth
(21%) are moving entirely away from home delivery and picking up
in-store instead.
- Shoppers want greater transparency and commitment when it
comes to pricing and personal data security: More than half
(52%) of consumers think that a retailer’s responsibility for
price-matching guarantees increases during the holidays. In
addition, they want retailers to make a greater commitment over the
holiday period to keep their personal data safe and secure when
making online purchases.
- Thanksgiving and Black Friday continue to lose their
shine. The number of respondents who said they’re less inclined
to shop on Black Friday or Thanksgiving than they were a few years
ago increased this year, from 50% to 55% for Black Friday and from
51% to 58% for Thanksgiving. The reasons cited most often for this
were avoiding the crowds competing to get the best bargains,
spending the holiday with their family, and being able to get
equally good discounts on other days.
- Healthier holiday food shopping. Shoppers are becoming
more health-conscious. For instance, they expect to spend more this
year on fruits, plant-based foods, and organic and vegan foods
while spending less on cakes and desserts, other sweet treats and
soda.
For an insight into some of the varying shopper expectations
across 17 U.S. cities, click here.
About the survey
The 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, each of whom
had purchased an item for personal use online or in a store within
the previous six months. Respondents were split evenly between
gender and by age group, with 20% each of Generation Zers (aged
18-20), younger millennials (21-27), older millennials (28-37),
Generation Xers (38-54) and baby boomers (55 and older). The survey
was conducted in July and August 2019.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions — underpinned by the world’s largest
delivery network — Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With 492,000 people
serving clients in more than 120 countries, Accenture drives
innovation to improve the way the world works and lives. Visit us
at www.accenture.com.
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Aleks Vujanic Accenture +44 7500 974 814
aleks.vujanic@accenture.com
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