Almost 90% of consumers are shopping in store this holiday. Most of them will combine the best of both in store and online shopping based on what they’re buying and for whom, according to our 2017 Holiday Outlook.
Find out when and where consumers will shop, what drives their purchasing decisions and how retailers are preparing for the season.
For these and other trends, check out our videos and download the report.
From finding just the right gift to deciding how best to get it to the recipient to what method of payment to use, holiday shopping is more convenient than ever before. Consumers will spend more on travel and less on gifts than last year. And as always, spending on family constitutes the largest chunk at 57% of their total budget.
Retailers understand the imperative to create a community of commerce — a welcoming environment where shoppers enjoy spending their time as much as they enjoy spending their money. In today’s environment they are constantly recalibrating the finely tuned—and very individualized—balance of convenience, price, speed, and variety to determine which channel works best in a purchasing decision.
Consumers over 35 plan to spend more than 60% of their holiday budget on family. While travel ranks high on millennials’ wish lists, Gen X consumers and Boomers are more likely to buy gifts of travel for themselves. Meanwhile, Boomers and the Greatest Generation will treat themselves to dining and entertainment options far more than other age groups
The vast majority of Young Gen Z consumers (aged 13-16) choose stores (81%) as their single most preferred way to shop this holiday, almost 2x the next preferred option of laptop or desktop and more than 3x the smartphone option. Meanwhile, 40% will shop solely in stores. They will look for gift ideas primarily on Instagram and YouTube.
Millennial dads will spend more on their families (63%) than all others consumers (57%). Tech-savvy shoppers, they will pay via smartphone at almost 3x the rate of other consumers and via wearable at almost 4x the rate of other consumers. They are also 3x more likely than consumers over 16 to shop via smart home technology.
Consumers will spend close to 30% of their holiday budget on travel, slightly more than they did last year. Most will visit family (50%) or take a vacation (42%) while a small portion (11%) will do both. Adventure travel is popular with consumers aged 17-35, both millennials (aged 22-35) and mature Gen Z (17-21). Meanwhile, mature Gen Z travelers also enjoy spa trips.
Consumers now do some 50% of their holiday shopping online. Most of them take 2-day delivery for granted; some are even more impatient. In response, retailers have shifted their focus from behemoth distribution centers in the heartland to more nimble versions with smaller footprints close to population centers — as they balance the economics of customer preferences, location density, and package sizes.
For consumers under age 35, who’ve always had easy access to peer reviews online, brand loyalty matters less than it does to older consumers. They trust friends and family the most — and have little use for traditional advertising as a source of product information. They are looking for real insights about products; they have no patience for stories that don’t speak directly to them.