Consumers are ready to start their holiday shopping - and they're looking for discounts

Posted by Karen Erdelac on Oct 22, 2013

The holiday rush almost always means increased revenue rates for retailers. That may be even more noticeable than usual this year: many Americans are planning to spend more on gifts for the winter holidays in the coming months than they had during 2012. Further, it seems they may be spending that money much earlier than they did in previous years.

U.S. shoppers are planning to spend an average of more than $640 each on gifts this year, a significant increase from the $582 they claimed they planned on spending at the same point in 2012, according to a report from Accenture, indicating that retailers should expect a rush at their payment processing terminals. Additionally, many people have already started their shopping: roughly 73 percent of respondents noted that they had either already started purchasing gifts, or planned to be done doing so by the end of November. That's very good news for retailers who are worried about the smaller window offered by this holiday season, as only 25 days separate Black Friday and Christmas in the 2013 calendar, as opposed to the 31 day buffer in 2012.

"The average dollar spend is trending up, and we are seeing a consumer mindset shifting from 'cautious' to 'sensible,' which is good news for retailers," said Chris Donnelly, global managing director of Accenture's retail practice division. "However, retailers are mindful that during the 2013 Thanksgiving-Christmas shopping period, they will have six days less in which to tempt shoppers through their doors, so many will go big and go early."

A recent Newsday report, citing comments from retail experts, noted that a significant amount of shoppers, spurred on by the lingering effects of the recession, would start their holiday shopping in October as opposed to November or December.

"I have noticed that several big-box stores have their holiday inventory and displays set up," Julie Marchesella, president of the Nassau County Council of Chambers of Commerce, said to Newsday. "And that's another reason we wanted to get the announcement out there to shop local and shop early."

Consumers want to shop early, and across multiple channels
The Accenture survey found that American shoppers are increasingly doing the majority of their shopping before December even arrives. Roughly 38 percent of respondents expect to visit four or more stores on either Thanksgiving Day or Black Friday, while another 36 percent expect to do some of their shopping before Thanksgiving even arrives.

Many shoppers are altering their approaches to explore the many shopping options that are now available to them, such as online credit card processing terminals. More than 60 percent of respondents to Accenture's poll noted they would look for items across physical and online store locations, purchasing products wherever they could find the lowest price. Additionally, more than 40 percent of shoppers noted that they plan to spend at least half of their holiday shopping budget at online store outlets. For retailers to succeed during the coming holiday season, it seems they need to make every possible effort to forge unity between their online, mobile and brick-and-mortar store locations. 

"To be successful, retailers must be able to satisfy consumers who, more than ever, want to shop on their terms and expect every step in the journey to be a seamless one, whether they are online, shopping in a store or using their phones," said Donnelly. "The list of consumer expectations of how they should be able to shop – from finding the same prices and promotions in a store as they do online to buying online and returning to a store – is getting longer every day. Increasingly, holiday-season winners will be defined by their ability to deliver a seamless experience to the consumer."

 

Topics: Funding Your Business, Retail