Are consumers going to put off their holiday shopping so they can wait for post-holiday sales? WWD (Women’s Wear Daily) reports on a survey from Invoice Home that shows 64% of consumers say inflation and the cost of living will likely impact their spending and budgets again this holiday season.
Instead of shopping early as they’ve done for the past few years, about 10% of consumers are postponing holiday celebrations until 2025 because they believe they’ll get better deals if they wait for post-Christmas sales. Other consumer concerns include credit card interest rates or credit unavailability (40%) and the outcome of the presidential election (37%).
Consumers are also planning to save money by:
- Not traveling (25%)
- Not buying gifts (24%)
- Thrifting gifts (23%)
- Boycotting brands that don’t offer free shipping or returns (11%)
- Regifting holiday gifts (8%)
- Taking out a second mortgage (5%)
Petr Marek, co-founder and CEO at Invoice Home, told WWD that businesses should spend time now enhancing their online presence, adding holiday-specific keyword research, and broadening reach to meet consumers where they are. And he adds, “The most important piece of advice for businesses for the next few months: train your staff to deliver the best customer experience.”
The report says millennial and Gen Z shoppers “may be holding grudges this season” and “expect more from brands” and that their experiences over the last year have shaped their decisions to shop with certain retailers. WWD says, “These behavior-shifting experiences” include:
- Price increases (Gen Z—31%; millennials—33%)
- Rude or unresponsive customer service (Gen Z—21%; millennials—22%)
- Increased cost to return (Gen Z—15%; millennials—17%)
There’s still plenty of good news for retailers. Most consumers still plan to shop during the holiday season (only 11% say they can’t afford to buy gifts). Those who plan to purchase will:
- Shop Black Friday and Cyber Monday weekend sales (38%)
- Shop in-store to avoid shipping costs (33%)
- Watch for a second Amazon Prime Day (30%) coming this October.
Rieva Lesonsky is CEO of GrowBiz Media, a media and custom content company focusing on small business and entrepreneurship. Email Rieva at rieva@smallbusinesscurrents.com, follow her on Twitter @Rieva, and visit her website SmallBusinessCurrents.com to get the scoop on business trends and sign up for Rieva’s free Currents newsletter.
Holiday shopping stock image by Natalliaskn/Shutterstock
