Accenture’s latest read on consumer sentiment revealed some key trends as the holiday shopping season heats up. The firm said in its 18th annual Holiday Shopping Survey that consumers are cautiously optimistic as they plan to spend more than last year while seeking deals. Their focus is on price, value and bargains.
The survey, which was based on the sentiment of 1,500 shoppers in the U.S., found that the average household spend for the season is $613, which is 4 percent higher than 2023.
“Despite consumers planning to spend more, retailers will need to cater for a group of ‘deal seekers’ who love a bargain and are driven by promotions, incentives and savings,” the report’s authors said, adding that 68 percent of respondents “rated price and value among the most important factors in deciding what retailer to buy from, and 30 percent said they will shop as and when they are offered promotions or discounts.”
Related Articles
Accenture noted that retailers and brands are dealing with one less shopping weekend this year, presidential election “ripple effects,” and “consumer behaviors that can turn on a dime,” which will put their levels of agility and responsiveness to the test.
You May Also Like
Another noteworthy trend is a decline in the expected use of gift cards. Accenture said in this year’s survey, 40 percent of shoppers plan to buy gift cards versus 65 percent last year. And about half or respondents acknowledge they fail to full redeem gift cards. According to Statista, the gift card market is worth about $200 billion in the U.S. alone.
Other findings include that 74 percent of those polled “perceived buying a gift card as an easy and safe option.” And for those on the receiving side, Accenture said 33 percent “were disappointed that the person hadn’t put time and effort into planning a personalized gift.”
Oliver Wright, global lead for Accenture’s Consumer Industries practice, said while many customers will turn to gift cards as an easy way to save time and effort, “they can be seen as lacking the personal touch by those on the receiving end. As a category, gift cards have tremendous potential to be reinvented. Building creativity and interactivity into the experience can help evolve gift cards from a last-minute, mind-blank gifting solution into a thoughtful and personal gift that customers are excited to give, and recipients are excited to use. Done well, they could help retailers and brands attract new and lifelong customers.”
Jill Standish, global lead for Accenture’s Retail industry group, said it is encouraging that consumers are planning to spend more this holiday season, “but with this optimistic outlook comes a reminder that price and value remain front-of-mind for many. Then there’s the challenge of where and how consumers experience a retailer. Everything from the adverts and digital marketing they receive to the online and in-store experiences, to the customer service they encounter along the way. These are all factors that can make or break the season.”
Standish said retailers and brands who will succeed this season, “will be those who harness the power of their brand as a magnet to draw customers to shop with them over their competitors. It will require paying even closer attention to customer data, ensuring promotions, marketing campaigns and advice are tailored to individual customers with much greater precision.”
For more WWD business news, see:
Experian Report Reveals Shifts in Holiday Shopping Trends
Fashion Steps Deeper Into the Metaverse
Holiday Hiring Challenges Rise as Service Industries Gear Up for Busy Season