Consumer Attitudes & Behavior

Physical stores still play a crucial role in holiday shopping.    That’s one of the major themes of the International Council of Shopping Centers’ annual holiday forecast, which emphasizes that, more than ever before, shoppers will expect an omnichannel experience this season. The report predicts 3.3% year-over-year growth sales at physical stores this holiday season (compared to 2.2% increase in 2015). Including online sales for physical retailers, ICSC predicts sales will rise 3.5%.     

Consumers’ lack of enthusiasm around the value of chip card usage could impact the upcoming holiday season. This month marks the year anniversary of the introduction of mandated Europay, MasterCard, Visa (EMV) chip card payments at retail stores across the United States. However, high levels of consumer frustration and confusion remain widespread, according to new research published by Cayan, a payment technology provider.

In the strongest forecast so far this year, holiday spending is expected to reach its highest point since the Great Recession, led by strong digital sales.   That’s according to PwC’s 2016 Holiday Outlook, which forecasts a 10% total rise in holiday spending over last year, and a 25% rise in digital sales.    “The great news for all retailers is consumers are much more optimistic this holiday season,” said Steven Barr, PwC’s U.S. retail & consumer leader. 

In its new study of retail bankruptcies, Fitch Ratings identified seven retailers as being “at risk” for filing bankruptcy in the next year to 24 months.  

E-commerce is on the rise in the grocery segement.    Online grocery sales are gaining momentum, reaching $48 billion in 12 months as of June 2016, according the “Future of E-commerce,” a report from Kantar Worldpanel. While the overall consumer packaged goods market remained flat, increasing just 1.6% over the 12-month period, online grocery sales are outpacing the market.  

European online shoppers continue to be intolerant of poor service.   As a result, retailers need to step up their game regarding shipping and fulfillment if they want to keep shoppers happy, according to the “JDA/Centiro Customer Pulse Report Europe 2016.” The study surveyed 8,190 adults online across the U.K., Germany, France and Sweden to learn their online shopping requirements.    

Interactive media continues to shake up retailers’ digital marketing strategies.  

It’s not just how much traffic a store gets. It’s what the store does with the traffic that matters. Chain Store Age will present a webinar on how retailers can increase sales even when challenged with lower store traffic.   Store traffic analytics expert Mark Ryski will draw on real-world, data-rich examples as he provides critical information on how retailers can drive significantly better retail performance for the holiday season and beyond—despite persistent ‘traffic trouble’.  

Americans will open their purses for holiday shopping regardless of whether Hillary Clinton or Donald Trump wins the election.      A survey of American voters by RetailNext found the vast majority will not let the outcome of election 2016 affect their planned spending this coming holiday season.   

Half of all American households might have an Amazon Prime membership by the end of this year.

Cowen and Company analyst John Blackledge estimates that approximately 44% of U.S. households are Prime members, and that  penetration could accelerate to 50% by the end of the year, according to a report by CNBC.   

Prime has maintained healthy growth largely due to [its] increasing value proposition," Blackledge said.