Tweet This
Courtesy of PwC
As we gear up for the holidays, shoppers have their wallets out and wish lists in-hand, poised to embark on a quest for the perfect gifts for their loved ones. Between gifts, travel, and entertainment, this season comes with a price tag; however, the numbers are in, and predictions say that shoppers are ready to spend. This year’s holiday spending will reach its highest point since 2008, increasing 10% as compared to last year , according to PwC’s new Holiday Shopping survey.
Also On FORBES:
But there’s a catch – it’s not all-so-merry for the store-based retailers. 42% of holiday spending will go towards travel and entertainment, leaving 58% for gifts. They’ll also compete with smaller, independent retailers and local artisans who are offering consumers unique and personalized products that more consumers are drawn to today. In order for store-based retailers to win, they need to cater to specific demographics – like millennials, Gen Z and hipsters – and by provide the services and value that matter most to shoppers, including knowledgeable store associates, speedy check-out options, click and collect and great prices.
So what can we expect this season? Here are the trends that will drive the holiday shopping season:
- Bigger holiday budgets: Totaling an average of $1,121, holiday shoppers will spend 10% more this holiday season. And consumers with annual household incomes less than $50,000 will increase their percentage spending levels even more than consumers overall.
- Chill for the holidays: Hipsters – upwardly mobile, college-educated millennials living in cities such as Austin, Brooklyn, Oakland and Portland, plan to spend $500 more than consumers overall this season.
- Shopping is social for Gen Z: Gen Z shoppers, who now represent the largest U.S. demographic at 86 million strong, are heavy mobile users and infiltrate many digital channels. These social media whiz kids prefer tangible gifts, unlike millennials who prefer experiences.
- Millennial parents think of others first: Millennial parents – often juggling full-time jobs while caring for their children – are almost twice as likely as other consumers to use a mobile device to pay for purchases. Far more optimistic about the economy, they start shopping earlier than consumers overall and enjoy it more.
- Holiday time…and the buying is easy: At the physical store, customers are looking for a frictionless, fast and easy checkout experience; Wi-Fi access to check product availability and prices; and knowledgeable sales associates to help find products and explain features.
- Thumbs a-tapping in a mobile wonderland: The silver lining for retailers – a stampede of shoppers will turn to digital this holiday shopping season. Digital sales are expected to increase by 25%. Meanwhile mobile shopping is up almost 25%, compared to last year.
- I want it...now: About 60% of retailers will provide both free shipping and free returns this holiday season – a must for consumers .
- There’s always a deal…somewhere: Low price is the top priority for 83% of shoppers, followed by the lure of deals and promotions (65 percent). Thanks to a profusion of cultural, social, and retailer-generated holidays, such as Earth Day and Singles’ Day to Chinese New Year and Diwali, promotions have become ubiquitous year-round.
- Brands matter: Brands matter to 80% of PwC’s survey respondents – whether established household names, local businesses, independent retailers, or new entrants.
- Season of caring: In the spirit of the season, a substantial majority of shoppers (75%) are donating cash, toys, food, and volunteer hours to their favorite causes. Of those donating cash, the average contribution is $244. Consumers said they favor retailers who are committed to corporate responsibility.
As we inch closer to the holidays, we’ll take a look at unique trends driving consumer spending. Stay tuned.
