Over a third of holiday shoppers plan to kick off their spending before November, forecasts Gartner.
As the holiday season approaches, retailers are gearing up for the busy shopping period. According to a recent survey, consumers are showing a preference for online shopping, extended return policies, and hybrid shopping services this year.
Twenty percent of those surveyed plan to increase their online shopping this holiday season, believing that online prices are more competitive than in-store prices. This trend could lead to an increase in online shopping, as consumers seek to save money on their holiday purchases.
Amazon and Target are capitalizing on this trend, with Amazon bringing back its Prime Big Deal Days sale next month and Target's Circle Week returning as well. Both sales events are being promoted as opportunities for consumers to get a head start on their holiday shopping.
Sixty-four percent of those polled said they plan to maintain their prior spending level for holiday shopping, while just 14% said they plan to spend more. This strategy, according to marketing expert Socha, will enable marketing teams to refine and implement the consumer insights and analyses made earlier in the year, helping retailers meet the expectations of their target customers.
Consumers are also showing a preference for extended return policies, with over seven out of ten younger shoppers reporting they would be at least a little persuaded to purchase if offered an extended holiday return policy. This trend is likely driven by the desire for flexibility and convenience during the busy holiday season.
In addition to online shopping and extended return policies, consumers are increasingly turning to hybrid shopping services. Fifty-seven percent of respondents plan to use one or more hybrid shopping services this year, such as buy online, pick up in store, curbside pickup, same-day delivery, or expedited shipping. This trend is likely driven by the desire for convenience and the ability to shop from the comfort of home while still receiving goods quickly.
However, there are also concerns about in-store shopping this holiday season. Sixty percent of consumers have at least one concern, with higher prices, inventory, selection, and security concerns seeing increases compared to last year. This trend could lead to a shift towards online and hybrid shopping services as consumers seek to avoid these concerns.
As of Wednesday, Black Friday is about 70 days away, and successful CMOs should begin holiday planning in Q1 and revisit their long-standing promotional and holiday plans throughout the year, launching execution in Q3. With the holiday shopping season just around the corner, retailers will need to be prepared to meet the needs and preferences of their customers.
- The rise in online shopping, fueled by competitive online prices and extended return policies, could lead retailers to conduct research on how AI and technology can optimize their e-commerce platforms to meet consumer demands during the pandemic.
- With inflation impacting the economy, marketing teams might adjust their policies to focus on lower-priced goods and services in an effort to minimize the impact on consumers during the busy holiday shopping season.
- Given the concerns about in-store shopping this holiday season, particularly regarding higher prices, inventory, selection, and security, some retailers might invest in innovative hybrid shopping services that combine the convenience of online shopping with the physical availability of goods to cater to customers' preferences.
