There’s some extra good news for companies this holiday season as consumers are more optimistic about the economy and are planning to spend more, according to Deloitte’s 29th annual holiday survey.
This online survey was conducted by an independent research company of over 5,000 consumers in the U.S. and found overall holiday spending is set to increase. Additionally, they found that more consumers prefer to shop online, shoppers are undeterred by recent reported data breaches, and December is predicted to be another busy month for retailers.
Deloitte’s predictions include:
- Total spending (including entertaining, socializing, gifts, etc.) is predicted to increase by 13 percent.
- Spending on presents is expected to rise by 9 percent from last year.
- Consumers who shop across store, mobile, and online channels are expected to spend 66 percent more on gifts than those shopping just at brick and mortar stores.
- The amount of gifts purchased will increase to 13.4 percent, up from 12.9 in 2013.
- Online and discount/value stores rank as the top shopping venues this year, with the Internet taking the number one spot.
- 56 percent of consumers indicate they will continue to shop at retailers that have experienced data breaches.
- Nearly half (49 percent) indicate they go to retail stores to look at items and then purchase those items online for a better price (“showrooming”).
- Forty-three percent of respondents will do a majority of their holiday shopping in December or later, an increase of 6 percentage points from 2013.
- Nearly three-quarters (74 percent) of shoppers say they will be influenced by coupons/promotions.
- This year, consumers plan to take advantage of a number of retailer offerings including; free shipping (68 percent); free returns (52 percent); price matching (45 percent); extended holiday hours (35 percent); order online for pick up in-store (34 percent); and free layaway (16 percent).
“With the short, 27-day shopping stretch between Thanksgiving Day and Christmas Day, retailers need to be sharp with their promotional timing, inventory management and distribution capabilities,” says Alison Paul, vice chairman and retail sector leader, Deloitte LLP. “Retailers that can fulfill orders from both online distribution centers and store inventories, for example, may be more nimble and poised to respond quickly to pockets of high demand for certain gifts – and ensure timely holiday deliveries.”
Additionally, retailers that harness and analyze consumer data from diverse sources are able to predict and influence consumer buying decisions. They can also use this data to drive demand, respond to customer needs, and gain consumer loyalty.