Forecasts point to a bright holiday shopping season this year with estimates that holiday retail sales will increase 4.5 – 5%. Ecommerce holiday sales are expected to grow 14-18% over 2018. This is according to Deloitte’s 34th annual holiday retail survey findings.
Consumers plan to spend $1,496 per household this year. Three-quarters of consumers cite price as an important factor in their purchasing decisions. However, retailers shouldn’t compete on price alone. Product and convenience are also important factors for consumers. Having great products scored 76% among consumers and convenience scored 64%.
Fast or Free Shipping?
When it comes to shipping preferences, consumers have made their preferences knows. Fully 85% prefer free shipping over fast shipping. Among those shoppers who prefer free shipping, 80% are willing to wait 3 days or more for delivery, and almost half plan to use the buy-online-pick-up-in-store option.
While people are still planning to give, they are also looking to spend on experiences such as travel, dining out and entertaining. Spend on “holiday experiences” is predicted to increases this year from 38% to 40% of total spend. In fact, two-thirds of holiday shoppers plan on socializing away from home, spending an average of $391.
Top gifts people plan on giving include clothes (55%), gift cards (53%) and toys, games, dolls, etc. (47%).
As expected, online shopping is expected to be strong this year, amounting to $144-$149 billion. Ecommerce sales are expected to grow between 14-18%, higher than the 11.2% in 2018. However, over two-thirds of holiday shoppers suggest they will research online and buy at least some gifts in-store.
Capturing High Spenders
A top goal for retailers will be to capture the attention and spend of high spenders. This category represents the 20% of all shoppers who intend to spend over %2,100, accounting for 60% of total holiday spend.
The majority (65%) of high spenders are individuals from high income households (over $100,000), 25% are from middle-income households ($50,000 – $99,000) and 10% are from lower-income households. These individuals also tend to be older, with 65% over age 40. They are more likely to buy clothing, gift cards and books for family members, especially spouses and children. Their largest spend (31% of their holiday budget) goes towards holiday travel and socializing away from home.
Smartphones are Growing in Holiday Shopping Usage
Consumers are taking advantage of having quick access to research, reviews, social media and more and are using their smartphone more and more. In fact, smartphones as a way to make holiday purchases have increased 11% since 2017.
Holiday Shopping Expected to Peak Slightly Later this Year
While holiday shopping usually peaks around Thanksgiving, the holiday shopping peak will most likely be slightly later this year. Thanksgiving is unusually late, placing Black Friday on November 29 and Cyber Monday on December 2. Gen Z (65%) and the millennials (61%) in particular are interested in finding deals on Cyber Monday.
Online Shopping Inspiration
Half of holiday shoppers are seeking inspiration or are undecided when they start shopping. Of those, 30% may have a category in mind such as clothing or toys, while 20% have no specific item in mind. Nearly two-thirds (65%) plan to browse online retailers for inspiration.
Target and Convert In-Market Holiday Shoppers
- Reach consumers who are actively browsing online for products you sell. We provide massive visibility into behavioral data and searches occurring on over 90% of internet-connected devices every month.
- Reach shoppers who have recently visited your store or a competitor’s location.
DEMAND-DRIVING PROGRAMS
- Convert shoppers with Porch Group Media’s demand-driving programs, designed to ensure you take advantage of our fast-moving data sets in real-time. We offer email, direct mail and digital advertising services.
Plus, we offer high quality omnichannel data, data append programs and robust email services to drive your holiday marketing success.
The holiday retail season should be cheerful this season. Learn more about how we can help you target and convert busy holiday shoppers. Reach us at 1-833-812-4636, email info@porchgroupmedia.com or click the form below to get started today.
