stats pulled from historical shopper insights in 2014 and 2015.
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1 The holiday season is the most magical time of the year for both consumers and retailers. Today, shopping happens everywhere and all the time. Consumers are in stores, on the web, on the web while in-store and always on their phones, each creating micro-moments for brands and retailers to reach them throughout their journey. The 206 Retailer Guide to Consumer Trends will unwrap the five key areas that retailers should keep an eye on this holiday season. From when and where consumers plan to shop to which items they re looking for and what retailers can do to seal the deal on a merry and bright holiday season. ABOUT THE REPORT This study is based on findings from the RetailMeNot Promotions Index and internal data collections from over 500,000 offers for 50,000 retailers, including engagement insights from millions of consumers. Forecasting models for 206 holiday predictions are based on data and stats pulled from historical shopper insights in 204 and 205. Additionally, two surveys from RetailMeNot, Inc. gathered consumer sentiment and shopping preferences for the 206 holiday shopping season: A Google Consumer Survey and a RetailMeNot, Inc. survey conducted by Kelton Global. A Google Consumer Survey was conducted between August 5 and 9, 206, in which,05 U.S. consumers aged 8 and over were surveyed regarding their holiday spending and preferences. The RetailMeNot, Inc. August 206 Survey was conducted by Kelton Global between August 23 and 26, 206, among,037 nationally representative Americans ages 8 and over, using an invitation and an online survey. Quotas are set to ensure reliable and accurate representation of the entire U.S. population ages 8 and over.
2 EVERY SANTA LOVES A SALE 5 % +0 % 5% of consumers bought a gift for someone on sale during the 205 holiday season. 0% of shoppers who didn t buy gifts on sale last year plan to shop promotions in % Nearly in 5 shoppers use a deals and savings app during the holiday season. Almost 3 in 4 high earners bought something with a promotion in 205. Shoppers aged 8 24 were more likely to learn about a good deal from friends than any other age group. 95 % 90 % $ 28 vs. $ 63 Nearly all parents plan on purchasing gifts for their kids, spending an average of $36 per child. 90% of shoppers with a significant other plan on purchasing a holiday gift for them. Men plan on spending more than women on gifts for their significant other this holiday season. 2
3 CHRISTMAS CREEP SLOWS SLIGHTLY Holiday Gift Browsing Takes Off in November 2 % In 205, consumer interest in deal searching increased 2% on November 7. Impressions in Millions October November 7 Black Friday November Cyber Monday Christmas Day December SANTA S ELVES GET TO WORK Before Before After 6 % SEPT 46 % NOV 54 % NOV 6% of shoppers will hit the stores before September. 46% of shoppers say they plan to start before November. More than half of shoppers plan to head online or in-store after November. THANKSGIVING WEEKEND RULES THE CALENDAR Projected Top Shopping Days in STARS Shoppers gave Black Friday and Cyber Monday savings an average rating in 205. NOVEMBER DECEMBER Mobile Desktop 3
4 MOBILE IS A MAINSTAY FOR HOLIDAY SHOPPERS Mobile Purchases Catch Up to Mobile Browsing on Thanksgiving Browsing Purchases November205 Desktop mdot Mobile App MILLENNIALS LOVE MOBILE In 206, I plan to shop online or on my smartphone on Black Friday. In 206, I plan to shop for Cyber Monday deals on my smartphone % 0 % 9 % 5 % % % 36 % % 39 % % % % Millennial shoppers are almost twice as likely to shop online or on smartphones this Black Friday. Cyber Monday goes mobile, too. DEALS MAKES THE IN-STORE DIFFERENCE 73 % Nearly 3 in 4 shoppers say they are planning on hitting brick-and-mortar stores this season. Half of consumers say finding a good deal beforehand will push them in-store during the holidays. Search engine Deals & Savings apps Mobile web Multi-Channel Shopping Drives Deal-Seekers More than 8 in 0 shoppers use up to 6 channels to find the best holiday deals and promotions. 83 % Retail apps Word-of-mouth Newspapers 4
5 THOUGHTFUL GIFT GIVING (AND BUYING) RESEARCH & PLANNING Food & Entertainment Travel & Auto Clothing Home & Garden Office Supplies DEAL-SEEKING Computer & Electronics Multi-Category Sports & Fitness Teen Clothing Toys & Kids LAST-MINUTE Accessories Books Gifts Health & Beauty Personal Services Sports & Fitness POST-HOLIDAY Food & Entertainment Health & Beauty Personal Finance Pre-Thanksgiving Thanksgiving to Mid-Dec Mid-Dec to Christmas After Christmas MAKING THEIR LISTS Which gift categories will shoppers seek deals on during the holidays? 56 % 5 % 3 % 20 % 8 % 5 % Electronics (Smartphones, TVs, etc.) Clothing & Shoes Toys Restaurants/ Entertainment Jewelry Travel TOP 3 CATEGORIES WHERE SHOPPERS WANT MORE IN-STORE OFFERS. Home & Garden 2. Multi-Category 3. Healthy & Beauty HOLIDAY SHOPPING WORKS UP AN APPETITE 45% of consumers say they dine out most often during the holidays when they are out shopping for gifts in stores. 66% of shoppers are more likely to look for savings on restaurants during the holiday season. 5
6 UNWRAPPING THE BEST OFFERS Nearly 4 in 5 shoppers say they feel financial stress during the holidays. 75% of shoppers would go to some length to get a great deal during the holidays, including: SPREADING HOLIDAY JOY ONE DEAL AT A TIME What can retailers do? Shoppers are likely to spend more money with a brand or retailer if it offers: 46 % Spend a day hunting online for the best price. 33 % Search for discount codes % 28 % 7 % Free shipping Percent off total Women prefer free shipping options more than men. Specific product deals 26 % 23 % 35 % vs. Travel more than hour to a store with a great deal. Line up at the doors before a store opens. 26 % PROMOTIONS THAT MAKE THE NICE LIST Men lean toward specific product deals more so than their female counterparts. GOOD: Free gift with $X Purchase Cash Back Rebates Up to X% Off Clearance 2 % vs. 4 % BETTER: $ or % Off One Item $ or % Off for Cardholders Up to X% Off Holiday Doorbusters BEST: $ or % Off Purchase Sitewide/Storewide Add Free Shipping 80% - The majority of affluent shoppers who make $50K or more prefer a percent off their total purchase or a specific product. 6
7 Five Key Takeaways. Shopping is up, and so is deal-seeking. emarketer is predicting a 3.3% sales growth in 206, compared to only 2.% in 205. Additionally, more than half of shoppers looked for and purchased something using a deal in 205, and that number is expected to grow to 60% this year. Retailers should not be in a race to the bottom, though. By using the right data partners, brands can better poise themselves to use promotions for reaching customers with the highest return. This can not only lead to boosted sales figures but, also, merrier and more loyal customers. 2. The holidays are a seasonal shopping marathon. Although the holiday surge kicked off a week later in 205 vs. 204, a trend we expect to continue in 206, there s still plenty to be said for early deal browsers. While we don t anticipate holiday shopping to start in earnest until the second week in November, 46% plan to head to the stores before November. Consumers today have all the tools necessary to research across multiple digital and physical touch points before deciding to make a purchase, and many are doing so well in advance. Many retailers marketing efforts are already underway for 206, but serving the best promotions during peak shopping days in November and December can help spirits stay bright all season long. 3. Mobile remains the leading force. In 205, not only were consumers browsing online for items away from the physical store, but they also began to feel more comfortable buying on mobile devices. There were six days in 205 where retailers saw mobile traffic surpass desktop for the first time. 2 While we expect to see this trend continue (and increase!), it should be noted that in-store purchases saw an average order value of $80 compared to only $70 on smartphones. Mobile may be a leading force for exploration, but many shoppers still enjoy the ability to test products in-store, pushing retailers to up their brick-and-mortar experience in order to better accommodate today s digitally savvy shopper Category timing is everything. Retailers are getting better at understanding their shoppers needs, however, deeper category insights continue to be a challenge for marketing leaders. While electronics and clothing remain top of mind for a majority of consumers, retailers should work with third-party marketing data experts to expand their view of category traffic highs and lows throughout the season. Additionally, as more consumers value spending on experiences and entertainment, the food and dining industry can expect to see a nice boost this holiday season in spending. 5. Work with data partners for more strategic promotion planning. In a survey conducted by TechValidate for RetailMeNot, 74% of retail marketers admit to either repeating the same promotions each year with minor adjustments or devising new plans using old performance data. Retailers who expand their owned promotional data to include real-time industry and category data insights from marketing partners are better equipped to adjust marketing strategies and promotions plans throughout the season. Third-party marketing data allows retailers to see beyond the walls of their own data for a more holistic view of their customer as well as real-time shopping trends during the busiest season of the year. For more information, visit: US Holiday Ecommerce Preview 206, emarketer. September Online Sales Hit $83B, Topping Expectations: Adobe. By CNBC. January 206. (CNBC.com) 3 NRF Communities Post-Holiday Retailer Survey, NRF. January
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