The holiday shopping season is near and business owners can expect a competitive marketplace with many retailers vying for the same customers. Though the competition will be stiff, the good news is that they are fighting for a slice from a larger pie. A recent survey from KPMG found that many consumers plan to spend more on holiday expenditures this year than they did last year.
KPMG surveyed more than 1,000 consumers about their holiday shopping plans for 2018. According to their report, 15 percent of consumers plan to spend more money this holiday season versus last year, with one-third of them planning to do so online. Online retailers should expect to see a bump in sales this holiday season. For example, nearly one in three consumers (31%), are expected to shop on Cyber Monday in 2018.
Cyber Monday is expected to be the big winner on Thanksgiving weekend when it comes to increases from last year, though the largest number of consumers plan to shop on Black Friday. According to the report, 2018 Cyber Monday shopping is expected to increase by 4 percent to 31 percent, up from 27 percent the year before. 2018 Black Friday shopping is expected to stay constant with 2017 at 44 percent, but remains the most popular day to shop. On the other hand, fewer people plan to shop on Thanksgiving Day, with only 9 percent of consumers planning to shop on the actual holiday, a slight decrease from the 10 percent from 2017.
Brick-and-mortar retailers with a strong online presence are best positioned to make the most of holiday shopping on Black Friday. The KPMG survey found an increased interest in cross-channel shopping compared to 2017. Of the survey respondents who plan to shop on Black Friday, nearly three out of four (74 percent) indicated that they plan to shop both online and in-store on that day, compared to 68 percent in 2017.
Retailers without an online presence are missing out on potential sales as more shoppers add online searches to their shopping tactics. Among the KPMG survey respondents, 12 percent said they would only shop in-store on Black Friday, which is a significant decrease from the 17 percent seen the year before.
“As more consumers turn to online shopping this holiday season, retailers are expected to escalate their efforts to deliver seamless and personalized customer experiences, both online and in-store,” said Mark Larson, national leader of KPMG’s Consumer & Retail practice. “Consumers expect a convenient and consistent transaction experience, which is customized to their needs, while also protecting the privacy of their information.
Retailers should pay special attention to their millennial audience when planning their digital marketing. The KPMG survey found that one in nine (11 percent) millennial respondents expected to spend more on just their online purchases during the 2018 holiday season, compared to seven percent for other age groups. In general 16 percent of KPMG survey respondents said they expect to spend more, both in-store and online, during this holiday season versus last year.
Expenditure levels point to an increase in spending during the 2018 holiday shopping season, with most of the increase coming from online:
- Thirty-one percent of the 2018 holiday season shoppers expect to spend between $1 and $250, same as last year.
- One-third (33%) expect to spend between $251 and $500 this year, up from 32 percent last year.
- Nine percent expect to spend between $751 and $1,000 this year, compared to 8 percent last year.
- Consumers planning to spend between $501 and $750 this year remain at 19 percent, same as last year, and those planning spend over $1,001 this year remain at 9 percent, also similar to last year.
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