KPMG: Online, mass merchants will grab biggest share of holiday purchases

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KPMG: Online, mass merchants will grab biggest share of holiday purchases

By Marianne Wilson - 11/07/2019

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%).

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