True state of US economy: Holiday shoppers will buy what's on discount, not what they wantStaff Writer | October 23, 2018
Shoppers may be writing longer "nice" lists for gifts and gatherings this holiday season, according to Deloitte's 33rd annual "Holiday Survey" of consumer spending intentions and trends.
America Shoppers plan to spend $525
Shoppers plan to purchase an average of 16 gifts and spend $525 on them, up 20 percent from $430 last year. Gift cards/certificates top the list with 54 percent of shoppers planning to make this purchase, while clothing comes in at a very close second (53 percent).
In the spirit of self-gifting, just over half (51 percent) of respondents say they'll buy for themselves while shopping for others – an increase of 15 percentage points over the last five years. This group also appears to be festive, making food and liquor (42 percent) the No. 1 item they'll buy for themselves, followed by clothing (40 percent).
Households plan to spend a total of $1,536 on the holidays this year, across all categories surveyed. The categories are gifts, seasonal entertaining at home or out with others; and non-gift holiday purchases such as holiday décor, home furnishings, non-gift apparel and other holiday-related spending.
This holiday season, 57 percent of total spend is expected to be online compared with 36 percent in stores, a drop of 10 percentage points for stores in the last four years.
People will look for inspiration both in the stores and online. Two-thirds (66 percent) say they'll head to online retailers to do their research, and retail stores and online search engines tied for second place at 56 percent each.
Online retailers (60 percent of shoppers) and mass merchant stores (52 percent) remain the top two shopping destinations, and are growing their lead year over year. They are followed by department stores (32 percent) and off-price retailers (28 percent).
While more online shoppers plan to make purchases on their PCs (79 percent), the number buying on their phones jumped to 67 percent this year from 59 percent last year among mobile shoppers.
More than 4 in 5 people surveyed (82 percent) say promotions influence their holiday shopping. Nearly all (95 percent) said price discounts are the most appealing promotional offers, followed by free shipping (75 percent).
Although more than three quarters of consumers (77 percent) plan to shop at the same retailers as last year, nearly the same amount (75 percent) are open to trying new ones. Better prices are the No. 1 reason they'd make a switch to a new retailer.
A lot of purchases may be up for grabs among retailers this season. Nearly half (49 percent) of respondents say they don't yet have specific items in mind that they plan to buy, whether shopping in-store or online.
"Early shoppers" – those who begin holiday shopping before Thanksgiving – account for 60 percent of respondents and are expected to spend 28 percent, or $370, more than those who start shopping later.
Retailers will likely see traffic peak in late November (Nov. 16 – 30) with 72 percent of consumers planning to make purchases during this time.
Looking ahead to traditional shopping days, 44 percent of people say they'll rely on Black Friday as they did in the past, while more (53 percent) will continue to count on Cyber Monday to do their holiday shopping. Reliance on these shopping days is down from last year. ■