KPMG: Online, mass merchants will grab biggest share of holiday purchases
Consumers will be spending more on holiday gifts this year and also doing more of their shopping online.
Average holiday season spending is expected to rise by 5% this year, with average spending per person to increase to $768, compared to $730 in 2018, according to KPMG's 2019 holiday shopping report, "Prepping for the Holidays – How Retailers Can Make This Year's Critical Shopping Season Merry."
Seventy-three percent of consumers are expecting to do more than 50% of their shopping online this year, which is 9% higher than in 2018. Shopping channels are expected to remain similar to last year, with online retailers (74%) and mass merchants (72%) expected to grab the highest purchases, according to the report. Price (81%) will drive purchase decisions, followed by free shipping (59%) and promotions (49%).
"Retailers of all sizes, categories and channels will compete fiercely during the lucrative 2019 holiday shopping season by offering early sales to seamless in-store and online customer experiences," said Scott Rankin, principal, consumer and retail strategy practice leader, KPMG. "Although shoppers will make most of their purchases online, in-store shopping remains significant this season, with mass merchants being particularly strong.
In other report highlights:
• Sixty-five percent of consumers are planning to buy apparel and accessories, followed electronics (52%), and toys and other children's products (49%).
• One in five (20%) holiday shoppers already began spending their holiday budget this year.
• The majority (57%) of holiday shoppers will start spending their holiday budget before Black Friday.
• High-value customers are planning to shop across more channels, with a focus on department stores (64%), electronics (45%), and clothing (50%).