Accenture: Consumers scaling back this holiday season — and not just on gifts
Consumers are thinking pragmatically going into the holiday season.
That’s according to Accenture’s 17th Annual Holiday Shopping Survey which found that while consumers won’t stop spending entirely, but they will spend in different ways with many exploring creative, yet practical ways to make budgets stretch.
For example, many are willing to compromise on convenience, with 53% opting to collect from store versus doorstep delivery if it saves them money.
In addition, 39% intend to consciously buy items such as boardgames that they can enjoy the entire year. This figure increases to 47% among young millennials (25-31 years) and 45% among older millennials (32-39 years). And 52% of consumers plan to buy materials for homemade gifts.
In other budget-stretching measures, 63% of consumers intend to cut back on utility usage by having fewer decorative lights, and 58% plan to cook less elaborate meals. Thirty-percent plan to buy second-hand items.
The survey of more than 1,500 U.S. consumers found that when thinking about their finances ahead of the holiday season, six in 10 are already — or are planning to — cut back on giving gifts to close family and friends due to budget constraints, rising to 69% for extended family and friends. And 52% of have already agreed — or are planning to agree — not exchange gifts with other adults.
Additional findings from the Accenture survey are below.
•With only 17% consumers saying they feel optimistic about their financial situation going into the holiday season, the survey shows that consumers are planning to spend $591 this season, on average, 5% less than last year.
•Consumers aged 70-plus anticipate spending $673, the highest among any age group, closely followed by younger baby boomers (59-69 years) who expect to spend $667.
•Price (78%) and value for money (60%) tops the list of most important deciding factors in how consumers will shop, and what they will spend money on this season.
“The current economic environment is having an impact on consumer confidence, resulting in what could be an emergence of far more considered shoppers that might be described as "creative pragmatists” — who, while being grounded in the reality that they may need to cut-back in some areas, are also finding innovative ways to make their festive dollars stretch further, such as buying materials to make homemade gifts,” said Jill Standish, senior managing director at Accenture and leader of its retail industry practice globally.
“Retailers must be willing to rethink the tried and tested strategies of the past and focus on gaining a more nuanced, data-driven understanding of each individual consumer, and then using that insight to help reduce complexity of the shopping experience, build trust, and improve brand loyalty,” Standish added.
The Accenture 17th Annual Holiday Shopping Survey offers insights into consumer buying patterns during the holiday time period, providing an indication of retail performance expectations both on the high street and online at a key time for the sector. For this year’s study, Accenture surveyed a representative sample of 1,503 U.S. consumers online, each of whom had purchased an item for personal use either online or in a store within the previous six months. Respondents were split between gender and across age groups, with 15% of Generation Zers (aged 18-24), 13% younger millennials (25-31), 15% older millennials (32-39), 21% Generation Xers (40-55), 21% baby boomers (56-69) and 15% aged 70+.