Majority of Holiday Shoppers View Inflation as Essential Factor in Holiday Financing, According to Study
International Shoppers Embrace Early Holiday Shopping Amid Economic Uncertainty
According to an Oracle Retail consumer research study involving 8,107 international shoppers, more than three-quarters (77%) are planning to shop early or have already done so for the holidays. Almost 60% of these consumers have reduced their spending due to economic uncertainty.
The survey further reveals that 71% of respondents would consider a store payment plan or financing option to cover their holiday purchases. A quarter of shoppers stated they had never utilized financing options before.
Nearly two-thirds (62%) of respondents expressed a willingness to pay more for faster or guaranteed deliveries. However, less than half (47%) stated that the speed of delivery would influence where they purchase gifts.
As other reports have mentioned, consumers are prioritizing the best price during this holiday season. Oracle found that 47% of respondents are carefully comparing prices between retailers. This finding suggests that consumers are preparing for potential inflation to increase prices, leading them to seek out bargains.
A survey released in August by 4Over discovered that 73% of respondents anticipated price increases during the 2022 holiday season. Meanwhile, 43% of respondents to an ICSC survey stated they were searching for deals and promotions, and 48% indicated they were shopping earlier to get the items they needed.
"Price is the leading factor influencing how and where consumers will shop during the holiday season," said Mike Webster, senior vice president and general manager of Oracle Retail, in a statement. "For retailers still grappling with inventory issues, getting merchandise and pricing strategies right will be decisive in managing margins and consumer expectations."
Among the items Oracle respondents plan to purchase this holiday season are experiences for friends and family (34%), fashion and apparel (30%), gift cards (29%), beauty and personal care products (29%), and footwear (28%). A fifth of Oracle Retail respondents aim to buy non-fungible tokens (NFTs) or digital collectibles as gifts. However, Dune Analytics data indicates that the trading volume for digital art and collectibles has dropped sharply from $17 billion in January to $466 million in September.
Oracle's research also suggests an upswing in in-store shopping this holiday season. According to the survey results, 43% of consumers plan to shop mainly in stores, while 23% are engaging in a blended approach of in-store and online shopping. A JLL survey released earlier this month found that less than two-thirds of shoppers are allocating their holiday budgets to in-store shopping, a slight increase from 58% in 2021.
[Enrichment Data for Relevance]
The overall trend in holiday shopping for 2024 and beyond shows consumers leaning toward early shopping, flexible payment plans, extensive price comparisons, cautious spending, and a hybrid of in-store and online shopping experiences.
Price transparency and competitive pricing have become increasingly important as retailers vie for the attention of value-conscious consumers during the holiday season. Inflation pressures continue to impact consumer spending decisions, with many opting for flexible payment plans to manage their budgets and maximize their purchasing power.
In-store shopping experiences remain relevant despite the prevalence of online shopping. Shoppers appreciate the immediate gratification and physical experience provided by brick-and-mortar stores, but many prefer to avoid long queues and crowds, leading to increased popularity of hybrid shopping options such as buy-online-pickup-in-store (BOPIS).
- The survey findings suggest that consumers are carefully comparing prices between retailers, possibly due to the anticipated inflation that might increase prices, causing them to seek out bargains.
- A quarter of shoppers stated they had never utilized financing options before, but 71% of respondents would consider a store payment plan or financing option to cover their holiday purchases.
- The trend in holiday shopping for the future, according to the enrichment data for relevance, shows consumers leaning toward early shopping, flexible payment plans, extensive price comparisons, and a hybrid of in-store and online shopping experiences.
- Despite the rise of online shopping, in-store shopping experiences remain relevant, with shoppers appreciating the immediate gratification and physical experience provided by brick-and-mortar stores.
- As many consumers opt for cautious spending due to economic uncertainty, various aspects of personal-finance, such as flexible payment plans and budget management, have become of significant interest in the retail industry.
