Shoppers have more money in their pockets and it looks like that will result in greater spending during the holidays.
A new survey from RetailMeNot shows Americans intend to spend even more this year than they did last year between Black Friday and Cyber Monday. Consumers intend to spend $803 on average, compared to the $743 they spent in 2017. And for 47 percent of respondents, the increase is directly tied to bigger paychecks.
But more money in their pockets doesn’t mean they’re any more willing to pay full price. The vast majority (87 percent) will be hunting for deals. And 67 percent said those stores that help them stretch their dollars the most will be rewarded by seeing more of their holiday spend. Free shipping will also be a big carrot for 64 percent of shoppers with 61 percent saying they’ll abandon their virtual carts if they’re expected to pay for delivery.
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While Black Friday is widely seen as the official start of the season, 60 percent of the 1,000-plus people polled plan to start shopping before then. And it seems they’ll be spreading their dollars around, shopping both online and off. More than 60 percent will head to department stores while 47 percent plan to hit big-box retailers. Sixty percent also intend to purchase from e-commerce pureplays.
“The retailers who succeed this year will rely on data for smart discounting strategies and smart marketing to meet consumers where they are,” said Marissa Tarleton, chief marketing officer of RetailMeNot.
One particularly demanding consumer group is also the demographic retailers are most keen to please. Millennials are the biggest focus for 57 percent of retailers this season. What they’re facing with this cohort, however, is a very high bar. Shoppers in this age group are looking for deals (93 percent), personalized experiences (72 percent) and fast delivery (89 percent). Just over a third (36 percent) revealed that they’ll be more loyal to stores with great service.
For those opting to shop virtually, mobile is the choice for 65 percent. Compare that to the 48 percent of Gen Xers and 30 percent of baby boomers who intend to shop from their phones.
“This holiday season, retailers will build on their back-to-school efforts to strategically leverage physical stores, and make bigger investments in both mobile and social media,” Tarleton said, adding that retailers need to ensure they have a “seamless” approach to omnichannel this year.
