National Retail Foundation (NRF) conducted a survey about how consumers plan to spend for the winter 2019 holidays and here are the key takeaways:
1. $1,048 Average Spent
Consumers plan to spend a total of $1,048 on average for items such as decorations, candy and gifts as well as other purchases for themselves and their families and is up slightly year over year.
2. 39% start Shopping before Nov
Almost 2/5 of consumers will start shopping their holidays shopping before November with early birds starting before September and the majority using their smartphone, or table to conduct research or buy.
3. 73% smart phone – tablet usage
It is no surprise that consumers are spending more time tether to their mobile devices to research and purchase for their holiday shopping. Over 70% of consumers will utilize their mobile devices with the 25-34 age group segment utilizing 90% of it.
4. “Free Shipping” is the Top Online Incentive
Consumers have multi channels to complete their holiday shopping from Online, Departmental Store, etc. For Online Retail, the top incentive is Free Shipping (92%), Buy Online – Pick Up in store (48%) and Expedite Shipping (17%) as the reason why people shop online.
5. Who/what is Inspiring Shopping ideas
Shopping for family and friends often send chills down a person’s spine as it’s hard to find the right gift, and they rely on finding ideas from different sources. Here are the Top 5 inspiration for holiday ideas:
#1. Online Search
#2. Friend and Family (of Course!)
#3. Within a retail store
#4. Wish list
#5. Advertising circular
6. Gift Cards still dominates
For those that were not able to settle on a specific gift, giving/receiving a gift card is a safe bet and a big source of revenue for retailers as consumers mentioned that receiving some sort of gift card holiday season as their #1 response.
7. Gift Card Spending will top $27 B
Consumers will spend $27.5 B during this holiday season with 3-4 card being purchased on average. Restaurant and Department Store gift cards are the most popular cards.
8. Charitable giving is on the rise
68% of those polled will participate in some sort of charitable giving. Of those that are participating, 36% will donate financially while 31% will donate some items of some sort.
The holiday season for 2019 looks strong and with online retail being on the rise, along with a high utilization of mobile devices as we knew all along. Those retailers that don’t have a gift card should tap in while thinking of better ways to catch the attention of online shoppers. Many thanks to NRF for producing the 2019 holiday report.