Holiday Shopping Trends 2012 - The Buntin Group
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Transcript of Holiday Shopping Trends 2012 - The Buntin Group
| 2012 Holiday Shopping Trends | December 20122
OVERVIEWMuch has been written about predicted and continuing-to-evolve trends for the 2012 holiday retail shopping world. What is common across all is the fundamental unpredictability of consumer behavior and the battle taking place among retailers to be in the right place with the right message and deal to capture available dollars. • Experts predicted higher consumer spending during the holidays, and retailers have
initiated innovative actions to lock down retail sales from tech-savvy and post-recession shoppers.
• Most evident is broader incorporation of technology into the shopping experience — a two-way street between retailers and the ever-demanding consumer, who is taking advantage of every opportunity, controlling where and how they buy.
• However, retailers are expected to compete on price first and foremost through delivery of engaging deals and discounts if they want to capture the attention of the modern-day thrifty shopper.
• As consumer priorities have shifted, loyalty to specific retailers has eroded. Consumers want transparency, convenience and efficiency in every interaction. And, they want to feel empowered by mobile technology, appreciated by the stores they shop in and most of all, have access to great holiday deals.
• Critical for all retailers is providing an environment that enables a “consumer win.” By giving shoppers more control and accessibility, retailers are renewing — and feeding — consumer excitement about holiday shopping.
| 2012 Holiday Shopping Trends | December 20123
INCREASED SPENDING FUELED BYDEALS & DISCOUNTS
Holiday sales are expected to increase in 2012, but many post-recession shoppers will still be “thrifting” — religiously seeking the best deal/lowest price for top merchandise.
4.1% Increase
*Estimated
2012
$562.1
billion
$586.1
billion*
20112012
• Consumer confidence in November was 73.7, the highest in 5 years, up from 61.3 in August.• Lower unemployment (7.9% as of
Oct. 2012 vs. 9.0% in Oct. 2011).• Housing market improvement
(value and sales).
The Conference Board Consumer Confidence Index, November 2012 Bureau of Labor Statistics, October 2012 National Retail Federation (NRF) Holiday Shopping 2012
Increased Holiday Spending
| 2012 Holiday Shopping Trends | December 20124
INCREASED SPENDING FUELED BYDEALS & DISCOUNTS
(continued)
According to a 2012 National Retail Federation (NRF) study, the most important factor driving consumer store choice will be the availability of sales and discounts.• JCPenney, which has implemented a no-couponing, everyday low
pricing model, has seen decreasing sales and a drop in brand preference.• Target, which announced in early September that they were going to
avoid deep discounting, has already reversed this with new holiday policies that include a price-matching program and an announcement that they will be “exceptionally competitive on price” during the holidays.
of consumers expect to find great deals this holiday season, up 18% from last year.
73%75% use Facebook to find discounts
SOCIAL MEDIA DISCOUNTSFacebook users are taking advantage of special discounts, or “flash deals,” by liking Facebook pages such as Kohl’s and Walmart.LivePerson Holiday eCommerce Survey 2012
Deep Discounting
Booz & Co. Holiday Retail Outlook 2012
| 2012 Holiday Shopping Trends | December 20125
Free shipping has become more of a necessity for retailers to compete. Deloitte’s 2012 Annual Holiday Survey found that consumers are 56% more likely to buy from a store that offers free shipping and free returns.• Walmart now offers a $10 flat rate for
same-day shipping, challenging Amazon’s starting price of $8.99 + $0.99 per item for same day.• Shop.org’s Pre-Holiday Merchant 2012
Survey says that 90% of retailers plan to offer some form of free shipping, and 30% will offer free shipping without conditions.
90%of retailers will offer
some type of free shipping
30% of retailers will offer free
shipping without
conditions
INCREASED SPENDING FUELED BYDEALS & DISCOUNTS
(continued)
Free/Discounted Shipping
| 2012 Holiday Shopping Trends | December 20126
CONSUMERS WIN WITH EVOLVED SHOPPING POLICIES/TOOLS
Holiday shopping starts earlier and earlier every year, a combination of stated consumer intent, as well as retailers that continue to push the timing of deals earlier during the shopping season.• Many stores like Walmart started Black
Friday deals on Thanksgiving, with hourly deals and an in-stock guarantee on popular items.• While some stores began offering Black
Friday deals online, other stores such as Kohl’s and Sears started Black Friday sales 2-5 days in advance.
2011 201237%
38%
39%
40%
41%
42%
38.9%
41.4%
Holiday Shopping Before November
NRF Holiday Survey, 2012
Holiday shoppers are continuing to shop earlier and earlier every year.
Early Holiday Shopping
| 2012 Holiday Shopping Trends | December 20127
Retailers have embraced price matching and are even facilitating price comparisons to combat consumer use of smartphones to find the best price. Because of increased online retailer penetration in holiday shopping, many brick-and-mortar retailers have established price-matching programs to increase foot traffic.• Best Buy changed its price-matching policy to include all
competitors, specifically targeting Amazon. In the past, Best Buy excluded price matching of online retailers.• Target stores will match online pricing for identical items
at competing sites such as toysrus.com, walmart.com, and amazon.com. Customers can show the item on a smartphone or simply ask customer service to look it up.• Ebay’s PayPal unit is offering cash back for any price
discrepancies discovered by consumers on products purchased using PayPal.
CONSUMERS WIN WITH EVOLVED SHOPPING POLICIES/TOOLS
(continued)
Price Matching
| 2012 Holiday Shopping Trends | December 20128
Retailers made adjustments to their layaway programs to lock in customers before their competitors and to eliminate negative opinions about hidden fees that some customers have experienced in the past. • Walmart offered early layaway access for those who “like” their Facebook page. They
also reduced the layaway fee from $15 to $5, which is then refunded with a Walmart gift card.• Fred’s Dollar Stores now offers a $1 layaway fee, which has resulted in a major
increase in layaway traffic for this retailer.
12%Shoppers Who Were
First-Timers
Shoppers Who Used Layaway
43%
NRF BIGInsight 2012 Black Friday Weekend Results
Layaways
CONSUMERS WIN WITH EVOLVED SHOPPING POLICIES/TOOLS
(continued)
| 2012 Holiday Shopping Trends | December 20129
CONSUMERS & RETAILERS EMBRACING TECHNOLOGY
The increase in consumer mobile phone shopping is old news. However, retailers are increasingly using mobile devices to improve the overall in-store experience.• Macy’s sales reps are carrying tablets
to help answer questions and check inventory to help capture a sale.• Target has added in-store QR codes to
the top 20 toys, so that if an item is sold out in stores, it can be instantly purchased online.• Walmart has upgraded its app, so
shoppers can more easily access deals, items on their shopping list and gift suggestions.
Retailer Mobile Integration
| 2012 Holiday Shopping Trends | December 201210
Continuing from last year, consumers are using their smartphones to compare pricing, read product reviews and research different products.
Prosper Mobile Insights Survey, 2012
• 55% of shoppers plan to use a smartphone or tablet to shop this year.• 53% of shoppers expect to research
holiday purchases online more than in 2011.• Last year, Amazon sparked outrage
among retailers after offering its price comparison smartphone app, Price Check, which compares retail prices with Amazon prices through barcode scans.
CONSUMERS & RETAILERS EMBRACING TECHNOLOGY
(continued)
Consumer Showrooming
37.9%
| 2012 Holiday Shopping Trends | December 201211
Social and online shopping, along with the use of multiple tech devices, is giving consumers increased control and flexibility in how and where they buy.• Holiday shoppers plan on shopping online 11% more than last year.• Nearly 40% of Americans will use social media to interact with brands this holiday.• 30% of traffic to apparel sites is coming from Pinterest.
Tablet owners plan to use their devices more than smartphone users to research & purchase gifts, décor & other holiday items.
64% 53%
73% use Pinterest to research ideas
70% use Twitter to read reviews
LivePerson Holiday eCommerce Survey 2012 NRF Holiday Survey, 2012
Consumer Social & Digital Usage
CONSUMERS & RETAILERS EMBRACING TECHNOLOGY
(continued)
| 2012 Holiday Shopping Trends | December 201212
BLACK FRIDAY/WEEKEND RESULTS SHOWING SUCCESS
2010 2011 20120%
5%
10%
15%
20%
25%
30%
5.3%
14.2%
24.0%
DISCOUNT WEEKEND MOBILE SHOPPING
21% from 2011 30% from 2011
DISCOUNT WEEKEND ONLINE SALES
Online retail sales saw massive increases throughout the holiday discount weekend. Mobile traffic increased 69% from last year, with the majority of
mobile shopping coming from iPads (41%) and iPhones (36%).
NRF BIGInsight 2012 Black Friday Weekend Results
IBM Digital Analytics Benchmark
| 2012 Holiday Shopping Trends | December 201213
Almost 15% more shoppers were at stores by midnight on
Black Friday than last year.
Brick-and-MortarBLACK FRIDAY SHOPPING
ShopperTrak Black Friday Sales 2012
2011
2012
24.4%
28.0%
% of Shoppers That Were in Stores by Midnight on Black Friday
BLACK FRIDAY/WEEKEND RESULTS SHOWING SUCCESS
(continued)
| 2012 Holiday Shopping Trends | December 201214
SALE
Black Friday foot traffic was up 3.5%.
While total holiday spending is expected to increase, overall retail sales were down 1.8%.
of Americans shopped during the holiday discount weekend.
44%
of shoppers took advantage of retailers’ promotions by purchasing non-gift items.
80%
NRF BIGInsight 2012 Black Friday Weekend ResultsShopperTrak Black Friday Sales 2012
BLACK FRIDAY/WEEKEND RESULTS SHOWING SUCCESS
(continued)
| 2012 Holiday Shopping Trends | December 201215