{"id":3895,"date":"2022-11-02T01:52:45","date_gmt":"2022-11-02T05:52:45","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2022\/11\/02\/the-good-news-for-brands-new-study-reveals-inflation-is-not-crushing-the-holiday-spirit-and-other-consumer-shopping-trends-this-season\/"},"modified":"2022-11-02T01:52:45","modified_gmt":"2022-11-02T05:52:45","slug":"the-good-news-for-brands-new-study-reveals-inflation-is-not-crushing-the-holiday-spirit-and-other-consumer-shopping-trends-this-season","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/the-good-news-for-brands-new-study-reveals-inflation-is-not-crushing-the-holiday-spirit-and-other-consumer-shopping-trends-this-season\/3895\/","title":{"rendered":"The Good News for Brands: New Study Reveals Inflation Is Not Crushing the Holiday Spirit and Other Consumer Shopping Trends This Season"},"content":{"rendered":"

After successfully navigating consecutive pandemic years and incredible disruption that forced retailers to adapt and innovate on the fly, many are hoping for a return to the status quo. <\/em><\/h1>\n

By <\/em>Matthew Furneaux,\u00a0<\/em>Loqate<\/em><\/a><\/p>\n\n\n\n\n\n

Unfortunately, 2022 is throwing retailers another curveball. Rising inflation and accompanying monetary policies have ushered in profound economic uncertainty. At the same time, widespread supply chain uncertainty, shifting consumer expectations and persistent hiring challenges ensure that retailers must innovate to stay competitive.<\/p>\n\n\n\n\n\n\n\n

However, there is room for optimism.\u00a0Deloitte\u2019s annual holiday retail forecast<\/a>\u00a0expects sales to increase by up to 6 percent, totaling nearly $1.5 trillion this year. While these projections are less robust than last year, it\u2019s clear that retailers can capitalize on buyer sentiment to drive sales this year.<\/p>\n\n\n\n\n\n\n\n

\u00a0<\/p>\n\n\n\n\n\n\n\n

Retailers can\u2019t afford to fall behind demand. According to\u00a0the recent Holiday Shopper Insights report<\/a>, consumers are ready to start their holiday shopping now. Unfortunately, only\u00a049 percent of retailers<\/a> say they are prepared for the upcoming holiday shopping season. Here are five urgent insights that can help retailers prepare for the holiday rush and drive better business outcomes this year.<\/p>\n\n\n\n\n

#1 Shoppers Are Watching Inflation Closely<\/h2>\n

Inflation is top-of-mind among shoppers heading into this holiday season. According to the 2022 Holiday Shopper Insights survey, 66% of Americans say high inflation is their biggest concern this year; beating out other holiday worries like low inventory, Covid-19 and shipping issues.<\/p>\n\n\n\n\n\n

Unsurprisingly,\u00a059 percent of Americans are stressed<\/a>\u00a0about buying gifts this season, expecting that higher prices will dampen their gift-giving capacity.<\/p>\n\n\n\n\n\n\n\n

However, 49 percent of shoppers plan to spend the same amount on gifts as last year. As a result, buyers are looking to jump on deals. Doorbusters and hot items will sell quickly on Black Friday as retailers combat inflation concerns and brand switching with enticing sales\/discounts.<\/p>\n\n\n\n\n\n\n\n

Notably, Millennials and Gen Z shoppers plan to significantly outpace their predecessors\u2019 spending. Thirty-one percent of Millennials and 38 percent of Gen Z buyers plan to spend more this holiday season, allowing retailers to direct their efforts accordingly.<\/p>\n\n\n\n\n

#2 Buyers Are Turning Out Early<\/h2>\n

\u00a0<\/p>\n\n\n\n\n\n

Supply chain issues and persistent low inventory are driving consumers to start their holiday shopping as early as October. In total, 87 percent of shoppers will begin their shopping before December. In response, many major retailers,\u00a0including Target and Walmart<\/a>, are rolling out holiday discounts in October, enticing early shoppers and bargain hunters to make purchases.<\/p>\n\n\n\n\n\n\n\n

Meanwhile,\u00a0only 23 percent of small and medium-sized businesses<\/a>\u00a0are starting promotions by Halloween and only 36 percent by Thanksgiving.<\/p>\n\n\n\n\n\n\n\n

For many shoppers, inventory is a top concern, and they are evaluating their options accordingly. More than half of Americans say a retailer\u2019s product availability\u00a0impacts their loyalty<\/a>.<\/p>\n\n\n\n\n

\n
\"2023<\/figure>\n\n#3 More Consumers are Mobile-First<\/h2>\n

While the in-store experience remains an important part of the buying process, online offerings are critical for buyers. Shoppers rely on these listings to research products, compare prices and complete purchases. Eighty-nine percent of global shoppers prefer to find presents online, even as foot traffic increases.<\/p>\n\n\n\n\n\n

Increasingly, these shoppers are using their smartphones to complete purchases. In 2022, mobile surpassed computers as the most popular online shopping device for younger shoppers, but nearly 60 percent of Boomers prefer to use a computer when shopping online.<\/p>\n\n\n\n\n\n\n\n

At times, the online shopping experience isn\u2019t entirely positive. Online shoppers saw\u00a0more than six billion out-of-stock messages<\/a>\u00a0last year, a stunning total that brings the frustrations of the in-store experience online.<\/p>\n\n\n\n\n\n\n\n

Ultimately, shoppers are looking for a hybrid shopping experience, combining the best elements of online and in-person shopping to find, purchase and deliver their holiday gifts.<\/p>\n\n\n\n\n

\n
\"Pie<\/figure>\n\n#4 People Are Persuadable<\/h2>\n

Buyers may be concerned about rising prices or unreliable inventory, but they can be persuaded to make a purchase with the right enticements, such as free shipping and promotions.<\/p>\n\n\n\n\n\n

Similarly, 84 percent of shoppers are concerned about packages arriving on time, and shoppers will abandon retailers after a late delivery. This is especially true for baby Boomers. Nearly half of Boomers say they will abandon a retailer that delivers a package late. Retailers can counter concerns by enhancing checkout auto-complete address tools that enhance delivery reliability, exploring alternative fulfillment options that diversify shipping options, and minimizing last-minute issues that decrease consumer confidence.<\/p>\n\n\n\n\n

#5 Checkout Can Make or Break the Shopping Experience<\/h2>\n

Checkout is the most critical part of the digital shopping experience, and customers may not be as patient as brands think.<\/p>\n\n\n\n\n\n

Consumers expect a seamless checkout experience and are not afraid to walk away if the process is too difficult. Nearly one-quarter of shoppers say they will abandon their carts if online checkout is too complicated.<\/p>\n\n\n\n\n\n\n\n

With cart abandonment costing retailers billions in sales annually, streamlining the online checkout experience is an obvious step to optimize revenue this year. An auto-complete solution for address data entry can help retailers alleviate friction, allowing customers to type as few as three keystrokes before auto-completing their addresses.<\/p>\n\n\n\n\n\n\n\n

Since online shoppers outnumber in-store buyers by 11 percent, an inadequate checkout process can make a meaningful dent in holiday revenue potential.<\/p>\n\n\n\n\n

Setting the State for the Holiday Season<\/h2>\n

This year\u2019s holiday shopping season presents unique challenges for retailers. From inflation concerns to shifting buyer priorities, retailers can enhance their offerings with timely enticements, compelling experiences and unparalleled execution to deliver results this year.<\/p>\n\n\n\n\n\n

This article was originally published on the author\u2019s <\/em>blog<\/em><\/a> and reprinted with permission. <\/em><\/p>\n\n\n\n\n\n

About The Author<\/strong><\/p>\n\n\n\n\n\n

Matthew Furneaux is a location technology veteran with over 20 years of experience in helping global businesses reach their customers globally. As director of location intelligence at\u00a0<\/em>Loqate<\/em><\/a>, a GBG company, Furneaux is responsible for strategy and innovation. He is also a retail and eCommerce expert and while at Loqate, has worked with leading eCommerce brands including Nordstrom, Sephora, Kohl\u2019s, Ralph Lauren and Michaels. Before joining GBG, Matthew cofounded Global Address (later acquired by Trillium Software) and helped to create a single platform model for a global location validation service.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Unfortunately, 2022 is throwing retailers another curveball. 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