2016 SAS Holiday Shopper Survey

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1 2016 SAS Holiday Shopper Survey

2 With Halloween over, the holiday season is officially in swing as retailers replace pumpkins and witches with trees and ornaments. Holiday shoppers are gearing up for gift buying and bargain hunting. Many shoppers will attempt to stick to last year s budget, which presents retailers with the challenge of vying for more of the wallet to increase sales this season. In addition, traditional shopping is giving way to more digital experiences, especially among the millennials, and retailers will need to focus both in-store and online. In October, SAS conducted online survey research among 4,061 adult shoppers from the United States, Canada and the United Kingdom to gain insight into their holiday shopping habits. Here s a look at what we found. 5 Key Holiday Shopper Insights Holiday shoppers might be a bit more frugal in their spending this year compared to Two-thirds plan to hold the line on the amount they spend versus 54 percent last holiday season. Fewer consumers say they will spend more on holiday shopping this year compared to last year (16 percent versus 26 percent). Online shopping is now as prevalent as in-store buying, and most gift buyers will use both channels. Seven in 10 shoppers say they will visit stores, and an equal percent will buy online. Thanksgiving Day and even Black Friday might be losing some appeal as shopping days. Only 15 percent of US shoppers say they will go out on Thanksgiving, while 35 percent will be gift buying on Black Friday. In 2014, 27 percent planned to shop in stores Thanksgiving Day, and 40 percent were shopping on Black Friday. One-third of shoppers pay attention to product suggestions from online retailers and use them to find gifts for their recipients. Most shoppers want to select the gifts they give themselves, but one in four would be interested in having the process automated by providing a robot assistant to guide gift choices Holiday Shopper Survey Findings Most shoppers are holding the line on spending this year Across all countries surveyed, 16 percent of respondents plan to spend more this year than they did in 2015, but nearly two-thirds of shoppers plan to stick to the same budget as last year. This is a change from last year, in which 27 percent of shoppers said that they planned to increase the holiday budget. Among those who are cutting back on spending, 55 percent indicated that the economy is to blame. Family changes are driving increased spending among 44 percent of those shelling out more for gifts this season. In the United States, 11 percent said that the impending presidential election is affecting their spending. Younger gift givers (under 30) are more likely than older consumers to loosen the purse strings this year. Men are slightly more likely than women to spend more (18 percent and 14 percent, respectively). Thanksgiving is for turkey, not shopping unless you re a millennial In the US, nearly four in 10 shoppers find it to be at least somewhat negative when a store decides to open on Thanksgiving Day, and only 15 percent of US shoppers plan to venture out after their turkey dinner. However, Thanksgiving Day shopping is viewed as more positive among younger shoppers, and they are much more likely than their older counterparts to suit up for a turkey day trip to the mall. Black Friday troop will also be young this year In the United States, Black Friday is still the most popular shopping day of the holiday season, edging out Cyber Monday (28 percent versus 22 percent). This is slightly lower than last year, in which 35 percent of shoppers planned to shop on Black Friday, and 32 percent planned to shop on Cyber Monday. However, the crowd that will be out on Black Friday will be lacking baby boomers less than 20 percent of Americans over 50 plan to shop on Black Friday, compared with more than half of millennials. Brexit impact positive for UK retailers The June Brexit decision has had varied effects, but the overall impact appears to be positive for UK retailers this holiday season. Nearly one in four UK consumers say Brexit has made them more likely to buy merchandise made or sold in the UK. Among those under 30, three in 10 said that they are more likely to buy merchandise made or sold in the UK. 2

3 (Wo)man s best friend More than a quarter of adult shoppers will purchase holiday gifts for their pets this year. Women are the ones who can t resist the puppy-dog eyes they are 50 percent more likely than men to buy gifts for their furry friends. At the same time, only 16 percent of all respondents plan to buy gifts for their neighbors, and even fewer plan to buy them for co-workers. At the top of the list are family members 85 percent of all respondents plan to give gifts to adult family members, and 64 percent plan to give to the kids in the family. Retailer product suggestions can be a gamble Slightly more than one-third of shoppers say that they get gift ideas from online retailers product suggestions, and 16 percent use social media Facebook, Twitter or Pinterest for gift ideas. However, shoppers may only be using product suggestions for ideas nearly four in 10 say that seeing those suggestions does not make them want to buy that particular product, even if they had previously viewed it. Another reason that shoppers may not be taking those suggestions is that they are not always accurate more than one-third of surveyed shoppers say that the recommendations are, at most, slightly accurate. Gift cards: The easiest gift is still the most popular Gift cards are at the top of the list of gifts that shoppers plan to give, except in the United Kingdom. Americans and Canadians were 50 percent more likely to take the easy route for their friends and family than those in the UK. Americans are also more likely to consider more modern gifts 20 percent plan to give digital gifts, and they are twice as likely to gift a subscription box (such as Birch Box or Bespoke Post) as those in Canada and the UK. Rechargeable shoppers? No, thank you. While some customers enjoy product suggestions, they do not want to give up gift-buying control. When presented with the option of a robot that would buy gifts for a specific set of people, 75 percent of shoppers were not interested, even at no additional cost. Only one in five shoppers would be interested if the service were free, with men slightly more interested than women. Online shopping: Women look for cost savings, men want convenience Among the women surveyed, one in five say that they make online purchase decisions based on shipping costs. In addition, 44 percent of women say that they compare prices for items that they find online, compared with 39 percent of men. Women are also much more likely to hunt for discount coupons when browsing for gifts. Men, on the other hand, just want to get it all done at once. They are 60 percent more likely than women to have their gifts arrive already wrapped and ready to go. Mobile online shopping is the go-to for millennials Of the shoppers we surveyed, 71 percent plan to shop primarily in the store, including nearly 80 percent of those over 50. Millennials, on the other hand, plan to shop from the couch nearly half plan to shop primarily via their mobile device, and 17 percent plan to shop with a tablet. Among all respondents who shop online, convenience is the most popular reason. Millennials also have more patience than the over-50 crowd when it comes to online shopping. They are 50 percent more likely to spend time reading product reviews before making a purchase, and they are 50 percent more likely to search for coupons online before completing their purchase. And despite the impersonal nature of online shopping, shoppers have not lost the holiday spirit. More than 80 percent of shoppers do not ship gifts to the recipients. Mobile payment systems just aren t convenient enough Despite the popularity of mobile shopping, mobile payment systems like Apple Pay, Samsung Pay and Google Wallet are not widely used. Among the shoppers that we surveyed, only 17 percent use mobile payment systems. Younger generations are more likely to use them 36 percent of those under 40 report that they use some form of mobile payment system. The biggest reason for not using them? The supposed convenience of mobile payment systems just doesn t beat the convenience of a credit or debit card, say 60 3

4 percent of shoppers. Another 37 percent say that they are concerned about security when it comes to mobile payment systems. After the holidays, women start on next year s list As shoppers start putting this year s decorations away, women already have next year on their minds. They are 50 percent more likely than men to browse the after-holiday sales, and 50 percent more likely to start stockpiling gifts for next year. In particular, more than 70 percent of millennial women plan to take advantage of after-holiday sales. What happens to the unwanted gifts? One after-holiday tradition that shoppers can agree on: regifting. Less than 20 percent of shoppers are likely to give a gift that they ve received to someone else. In particular, shoppers over 50 are the least likely to consider regifting something. Last year, regifting was more popular 36 percent said that they were likely to repurpose their gift for someone else. Returns, on the other hand, are more acceptable. Nearly one in four shoppers plan to return or exchange a gift, and they don t even know what they re getting! 4

5 2016 SAS Holiday Shopper Survey Question Responses: All This holiday season, I expect to spend Countries Which of the following reasons has had an effect on your spending habits this year? Less than I spent last year 17% Around the same as I spent last year 65% More than I spent last year 15% Not sure / don't know 3% Economy 46% Family changes 35% US Presidential Election 7% Employment 34% Other 14% In total, how much do you expect to spend on gifts this holiday season? (In local currency) Who is on your holiday gift list this year? Select all that apply. 100 or less 12% % % % % More than % Family members 18 and over 85% Family members under age 18 64% Spouse or significant other 61% Friends 54% Pets 27% Co-workers 15% Neighbors 16% Teachers 8% Service providers 12% Others 3% Where do you get ideas for the gifts you give? Select all that apply. I ask people what they want 69% I browse for gift ideas at stores 63% I search Pinterest for gift ideas 15% I search Twitter for gift ideas 4% I search Facebook for gift ideas 12% I get ideas from others 46% I get ideas from the media 31% I get ideas from online retailers' product suggestions 34% Other 9% 5

6 What gifts are you likely to give this holiday season? Select all that apply. Gift Cards 61% Toys / Games 48% Apparel / Accessories 48% Charity Donation 9% Subscription Boxes 4% Digital Gifts 18% Books, Music or Movies 42% Cosmetics / Fragrance 29% Money 39% Jewelry 25% Consumer Electronics 21% Household Goods 29% Homemade Gifts / Baked Goods 28% Food or Beverage 30% Sporting Goods 14% Vacation / Trip 6% Other, please specify: 4% In light of the UK s decision to Brexit, are you more likely to buy gifts made in the UK? More likely to buy UK merchandise 23% No change 76% Less likely to buy UK merchandise 1% How do you primarily shop for holiday gifts? Online via my PC 60% In-store 71% Online via my mobile phone 18% Online via my tablet 14% If a brand or item you want to purchase as a holiday gift is not available in-store, are you likely to? Go online to the same store's website to find it Go online to another retailer's website to find it Go to different store in-person to get it Go to another location of the same store to get it Stay in same store and buy a different brand or item 26% 18% 27% 14% 8% Search for item on ebay 4% Other 3% 6

7 When are you likely to shop for holiday gifts this year? Select all that apply. My holiday shopping is already done 5% Boxing Day 3% Thanksgiving Day 10% Black Friday 28% Cyber Monday 22% During the holiday shopping season (Nov. & Dec.) 73% The week before Christmas 18% Christmas Eve 5% Other 8% If a store decides to open on Thanksgiving Day, what impact does it have on your opinion of that store? Extremely positive 12% Somewhat positive 8% Neither positive nor negative 41% Somewhat negative 21% Extremely negative 18% Why do you shop for holiday gifts online? Please select up to three... It's more convenient 53% I can search for better deals 37% It saves time 33% Free shipping offers 31% The crowds at stores are overwhelming 28% It saves money 23% Better selection / variety 30% I am not limited by store hours 23% I'm more aware of how much I'm spending There's too much traffic on the roads 7% 7% Lack of parking at retailers 4% Other 2% Once you ve placed your gifts in a virtual shopping basket, how long are you willing to wait for the transaction to complete? Less than 10 seconds 3% seconds 14% 30 seconds 1 minute 28% One to two minutes 30% Up to five minutes 14% More than five minutes 11% 7

8 When shopping for holiday gifts online, how often do you? Make purchase decisions based on shipping dates When shopping for holiday gifts online, how often do you? Make purchase decisions based on shipping costs When shopping for holiday gifts online, how often do you? Have your gift arrive already wrapped When shopping for holiday gifts online, how often do you? Ship your purchased gift to your home When shopping for holiday gifts online, how often do you? Ship your purchased gift to the recipient When shopping for holiday gifts online, how often do you? Compare prices When shopping for holiday gifts online, how often do you? Read product reviews Never 8% Rarely 17% Sometimes 39% Frequently 25% Always 11% Never 5% Rarely 10% Sometimes 34% Frequently 33% Always 18% Never 46% Rarely 23% Sometimes 19% Frequently 8% Always 4% Never 2% Rarely 4% Sometimes 16% Frequently 35% Always 43% Never 29% Rarely 27% Sometimes 26% Frequently 13% Always 5% Never 2% Rarely 4% Sometimes 18% Frequently 35% Always 41% Never 4% Rarely 7% Sometimes 28% Frequently 35% Always 26% 8

9 When shopping for holiday gifts online, how often do you? Look for discount coupons online When shopping for holiday gifts online, how often do you? Purchase items from the product suggestions made by online retailers If a particular website indicated that a brand/item was out of stock would you? Of the following methods of personalized communication, select the three that you prefer most. Never 8% Rarely 15% Sometimes 28% Frequently 26% Always 23% Never 16% Rarely 32% Sometimes 38% Frequently 10% Always 4% Purchase another brand on the same website Go to a different website to get your desired brand/item Go to the same store as the website (if it exists) in person to get your desired brand/item 16% 62% 19% Other 3% Text messages with promotional offers from companies I do business with Text messages with promotional offers specific to my location from companies I do business with Personalized s from companies I do business with Promotional s from companies related to my lifestyle and/or interests Advertisements relevant to my lifestyle and/or interests on webpages I visit Messages and advertisements relevant to my lifestyle and/or interests on social media feeds Direct mail/catalogs from companies related to my lifestyle and/or interests Advertisements from mass media outlets (TV, newspapers, etc.) Loyalty program updates and offers from companies I do business with 20% 13% 60% 41% 19% 10% 40% 16% 54% 9

10 While browsing the internet for gifts, you notice that advertisements for items that you previously viewed. How likely are you to click and purchase those items? When shopping online, how accurate are retailers when making product suggestions based on your previous searches? When shopping for gifts, do you use any form of mobile payment systems? Why do you not use any mobile payment systems? Not at all likely 17% Somewhat unlikely 20% Neither likely nor unlikely 36% Somewhat likely 21% Very Likely 6% Not accurate at all 8% Slightly accurate 29% Moderately accurate 45% Very accurate 14% Extremely accurate 4% Yes 17% No 83% Worried about security 37% Don't understand the technology 13% It is not accepted everywhere 9% My credit/debit card is just as convenient 59% Other 10% Imagine that a service is available for a robot to buy gifts for a specific set of people on your list. Would you use this service? The Holidays are over. Now what? Based on previous holidays, how likely are you to...? Return or exchange a gift The Holidays are over. Now what? Based on previous holidays, how likely are you to...? - Shop during the after-holiday sales The Holidays are over. Now what? Based on previous holidays, how likely are you to...? - Shop for gifts for next year Yes, but only if it was free 19% No, I prefer to buy my own gifts 75% Yes, I would pay a small fee for this service 6% Very Unlikely 19% Unlikely 25% Neither likely nor unlikely 33% Likely 18% Very Likely 5% Very Unlikely 10% Unlikely 10% Neither likely nor unlikely 21% Likely 39% Very Likely 20% Very Unlikely 26% Unlikely 22% Neither likely nor unlikely 19% Likely 22% Very Likely 11% 10

11 The Holidays are over. Now what? Based on previous holidays, how likely are you to...? - Donate some of your gifts The Holidays are over. Now what? Based on previous holidays, how likely are you to...? - Give one or more gifts you receive to someone else Gender Very Unlikely 26% Unlikely 26% Neither likely nor unlikely 28% Likely 15% Very Likely 5% Very Unlikely 32% Unlikely 25% Neither likely nor unlikely 24% Likely 14% Very Likely 5% Male 42% Female 58% Prefer not to answer 0% What's your employment situation? Age groups Country Employed full-time 37% Employed part-time 14% Full-time student 2% Not currently employed 11% Retired 31% Other 5% 18 to 24 4% 25 to 29 6% 30 to 39 16% 40 to 49 16% 50 to 59 22% 60 to 69 23% 70 or older 13% Canada 25% United Kingdom 25% United States 50% 11

12 To contact your local SAS office, please visit: sas.com/offices SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright 2016, SAS Institute Inc. All rights reserved US

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