Survey: Christmas shoppers will be more price conscious

Marlene Kennedy DOWN TO BUSINESS

In the throes of midsummer’s blistering heat, what better time to think of Christmas sales.

Or, more precisely, how consumers may behave during the 2023 winter holidays.

That was the topic of a webinar this week, hosted by the trade publication Chain Store Age, sharing results of a shopper survey conducted by San Antonio-based marketing consultant Vericast.

Rather than offering spending projections, which groups like the National Retail Federation do in late fall, the webinar was geared to advising retailers on how consumers are feeling, given still-high inflation and attempts to tame it that have pushed up borrowing costs.

Indeed, holiday spending last year wasn’t as robust as first expected due to inflation, which ended the year at 6.5% but peaked at 9% in June. The Retail Federation, though, still called the seasonal results “respectable,” up 5% from 2021 to $936.3 billion in sales.

Chip West of Vericast, who watches national consumer trends and data, said inflation would continue to be a “significant issue” this holiday season, with shoppers keen on “deal-seeking” and willing to bypass a favored retailer for a better deal elsewhere.

Half of the survey respondents said they plan to use more coupons for holiday shopping, according to the survey. One-third will keep an eye out for coupons in the mail or through a newspaper; a similar number will watch for online promotions.

Nevertheless, Vericast’s poll of nearly 1,900 consumers indicated 25% plan to spend more this year and 40% say they’ll spend the same as in 2022.

West said consumers “snake-bit in the past,” or shut out of popular items in short supply, likely will shop earlier this year to avoid a repeat. The survey reported 47% of respondents expected to start their holiday shopping in October or earlier, a “pull forward” phenomenon that has been gaining traction.

Most shoppers, though, still keep to a November-December gift-buying schedule.

Sara Thomsen, a senior manager of client strategy for Vericast, said “influencers” on social media platforms like Instagram and TikTok are playing a larger role in consumers’ purchases.

“Influencer marketing can be a powerful tool for [retail] brands, with influencers showcasing products, offering discounts, and influencing the buying decisions of followers,” she said.

That shows “the importance of building a strong social media strategy to connect with consumers during the holiday season,” she added.

Nostalgic about Black Friday

The Vericast survey also had this interesting finding: 45% of shoppers are nostalgic for the Black Friday experience, the day after Thanksgiving traditionally dedicated to deep store discounts.

Thomsen said Gen Z and Millennial consumers in particular, who are in their 20s and 30s now, grew up with the experience and “missed the excitement and camaraderie of shopping with family and friends, which made it more of an event” to celebrate the start of the holiday sales season, “and wanted to continue … that tradition into adulthood.”

Marlene Kennedy is a freelance columnist.

Opinions expressed in her column are her own and not necessarily the newspaper’s. Reach her at marlenejkennedy@gmail.com.