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.
Almost 20% of consumers told us they will use their smartphone to pay for in-store purchases this holiday season while close to 10% will use a wearable device such as a smartwatch. Uptake for young consumers aged 13-16, who’ve grown up around smartphones and wearable devices, is higher — at close to 30% for in-store smartphone payment and almost 15% via smartwatch.
Young consumers aged 17-21 (mature Gen Z) as well as urban dwellers in large cities will spend the most on pets this holiday at $71, followed by millennial dads at $70. Of note, mature Gen Z will spend the highest proportion — 9% — of their holiday budget on pets, compared to 4% for pet owners overall.
In the spirit of wellness as a lifestyle, millennials (aged 22-35) are twice as likely as older consumers to take a spa or fitness vacation this holiday while consumers aged 17-21 are more than 4x as likely. Meanwhile, core millennials (aged 26-30) and millennial moms rank spa or salon gift cards almost twice as high on their list of holiday purchases as all consumers.
Young Gen Z consumers forge their own path. The vast majority of these young consumers choose stores (81%) as their single most preferred way to shop this holiday with 40% planning to shop exclusively in stores. They are looking for helpful sales people, faster checkout and low prices. On top of their wish list? Personal electronics and clothing.
When we asked consumers nationwide about their travel plans for PwC’s 2017 Holiday Outlook, 39% told us they are planning to travel over the holidays.
Don’t expect your holiday gifts to be delivered by drone this year, but we are getting close! Technology and innovation continue to drive new opportunities and experience, sweeping up consumers and retailers in its wake.
Shoppers expected to spend more this holiday season, with the majority combining the experiences of both online shopping and visiting a store rather than choosing between them.
Steve Barr
Consumer Markets Leader, PwC US
Tel: +1 (415) 498 5190
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Allison Stone
Consumer Markets
Tel: +1 (646) 471 8766
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Krystin Weseman
Consumer Markets, Senior Analyst, PwC US
Tel: +1 (312) 298 4238
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