Emerging Group of “Organized Consumers” Looking to Spread Holiday Spending Over Several Months, Accenture Survey Finds
NEW YORK; Oct. 18, 2022 — Americans are embracing the vacation spirit and targeted on spreading cheer to others, nevertheless widespread uncertainty and private monetary strains are prompting customers to plan for the vacations with larger precision, in accordance to outcomes of the sixteenth Annual Holiday Shopping Survey from Accenture (NYSE: ACN).
The survey of greater than 1,500 U.S. customers discovered that almost all (84%) are wanting ahead to the vacations. Just over half (53%) are wanting ahead to spending time with family members this season, and to treating themselves and others (39%).
“The organized consumer”
Faced with larger prices and a sharpened concentrate on getting what they want for the vacations, a gaggle of “organized consumers” is rising and strategizing how to stretch their purchasing {dollars}. Just over one-third (35%) of all customers mentioned they’ll attempt to stick to a vacation finances, and 45% are purchasing at totally different instances this yr in search of the bottom costs.
The survey additionally reveals that many “organized consumers” pulled out their vacation purchasing lists early, with 45% saying that that they had already began purchasing in August. A small proportion (16%) purchased some gadgets in early 2022 to take benefit of final yr’s post-holidays gross sales and reductions.
“In times like this — when prices are rising and merchandise stock levels are fluctuating — consumers feel the volatility and take a long view of the gift giving season to ensure they can enjoy the holiday celebrations,” mentioned Jill Standish, a senior managing director at Accenture who leads its Retail trade observe globally. “To succeed in this market, retailers must pay close attention to data and analytics to identify areas that require increased marketing efforts, as well as targeted and highly customized offers to the different customer segments without eating into profits. Shoppers will reward retailers that focus on delivering a personalized and enjoyable experience when it matters most.”
Winning customers’ share of pockets
A parallel Accenture survey of 150 retail executives within the U.S. discovered that retailers are responding by taking steps to win client spend. Almost all executives mentioned that elevated promotional exercise (cited by 99%) and availability ensures (98%) kind half of their firm’s plans for the season. Furthermore, 37% mentioned their firm is stockpiling items to guarantee provide. An identical quantity (35%) mentioned their firms are taking particular measures or deep discounting to offload surplus inventory, and 32% are re-optimizing pricing and promotions.
“Many retailers have excess inventory they need to sell, which will come as welcome news to consumers in search of promotions and deals,” mentioned Lori Zumwinkle, a senior managing director at Accenture who leads Accenture’s Retail trade group in North America. “As the relevance of stand-alone sales events continues to dwindle, retailers must take a long view of the season. This should include a dynamic marketing and promotions plan anchored around existing inventory and then adapted as the crucial trading season ebbs and flows.”
Spreading vacation cheer to others
Despite private funds being squeezed, customers are in search of methods to unfold vacation cheer by charitable giving.
As in years previous, reward playing cards would be the hottest reward to give this vacation season, with 72% of customers saying they plan to spend the identical or greater than final yr. There are additionally indicators that buyers are taking the time to get artful, with greater than half (54%) intending to spend the identical or extra on elements or supplies for home made presents this vacation season in contrast with final yr.
Deck the shops
The survey additionally highlights how offering extra providers may assist retailers drive footfall to shops and contribute to constructive vacation purchasing experiences. For occasion, two-thirds (68%) of all customers — and 88% of older millennials (ages 32-39) — mentioned that providers comparable to an in-store restaurant or magnificence salon would entice them to store with one retailer over one other.
Another factor that will entice customers to store with one retailer over one other is a devoted in-store space for selecting up on-line orders, cited by two-thirds (68%) of customers total — and 90% of older millennials. This isn’t significantly stunning, provided that one-third (32%) of customers mentioned they’re seeing a rise in supply costs.
“Retailers with physical stores could be set to gain this holiday season as consumers go in search of the perfect gift, the experience of seeing Santa, or the peace-of-mind of picking up items in-store themselves to ensure that have the product in their hands,” Standish mentioned. “Innovative retailers are applying creativity to the store layout to maximize the sales for each square foot of their allocated selling space. One example is creating a live-stream studio to support e-commerce sales or dedicating an area to collect orders. Retailers are also looking for ways to combine staff and technology to ensure that shoppers’ in-store experiences are easy, enjoyable and efficient to navigate.”
About the surveys
The Accenture sixteenth Annual Holiday Shopping Survey affords insights into client shopping for patterns through the vacation time interval, offering a sign of retail efficiency expectations each on the excessive road and on-line at a key time for the sector. For this yr’s research, Accenture surveyed a consultant pattern of 1,508 U.S. customers on-line, every of whom had bought an merchandise for private use both on-line or in a retailer inside the earlier six months. Respondents have been break up between gender and throughout age teams, with 13% of Generation Zers (aged 18-24), 17% youthful millennials (25-31), 17% older millennials (32-39), 19% Generation Xers (40-55), 20% child boomers (56-69) and 15% aged 70+.
A parallel survey of 150 U.S. retail executives was additionally carried out to discover actions taking by retailers within the run up to the 2022 vacation season, and distinction with client expectations. All respondents have been US based mostly and labored at Vice President stage or above (26% CEO / C-suite, 48% SVP or EVP and 26% VP) for retail firms with annual turnover of greater than $1Bn (57% $1-5Bn, 35% $5-20Bn, 8% $20Bn+).
Both surveys have been carried out in August and September 2022.
About Accenture
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