Accenture: Holiday spending to increase; discount stores top destination

New York -- One-quarter (25%) of U.S. consumers plans to spend more on holiday shopping this year up from 20% in 2013, and spending on holiday gifts is expected to average $718, according to Accenture’s annual holiday shopping survey.



The survey also found consumer enthusiasm for Black Friday shopping has reached its highest level in eight years. Two-thirds of respondents (66%) said they are likely to shop on Black Friday, compared to 55% who planned to do so in 2013.



In addition, 37% plan to shop online during that period using a desktop, mobile device or tablet, up from 32% in 2013. Plans to shop on Thanksgiving Day and evening rose to 45% from 38% 2013. Of those consumers planning to shop on the holiday, 47% said that they will be shopping in a physical store between 6 p.m. Thanksgiving Day and 5 a.m. on Black Friday.



The Accenture Holiday Shopping Survey found that of those consumers planning to spend more this year, 28% said they have more discretionary income and 22% noted that they have greater job security, up from 15% in 2013. Additionally, consumers are planning to allocate a greater share of wallet to holiday shopping than in previous years. For example, of those planning to spend more this year, 47% plan to spend $250 or more compared to 40% in 2013.



Even though they intend to spend more, holiday shoppers remain keenly focused on discounts and sales. Nearly all respondents (96% versus 94% in 2013) said that discounts will be important to their purchasing decisions, and more than one in four (29%) said that it would take a discount of 50% or more to persuade them to make a purchase.



Retailers could also see a shift in sales in the post-holiday season this year, as more than half (57%) of consumers plan to purchase gift cards (the top item on consumers’ shopping lists) this year and 17% will use gift cards to do their holiday shopping, up from 10% in 2013.



“The majority of retailers look for ways to extend the holiday season as late as possible, but can face challenges in delivering a physical product in time,” said Dave Richards, global managing director, Accenture’s Retail practice. “Personalized promotions and pushing gift cards are a good way for retailers to continue momentum and stretch this success into the post-holiday season.”



Digital technologies

Digital technologies will play a big role in holding shopping this year. More than half of consumers surveyed (63%) indicated that they will use a laptop or home computer to make purchases or assist in their holiday shopping this season (up 16% from last year), and 24% plan to use a smartphone, up from 18% last year.



In addition, 13% of respondents said they intend to use social networking sites to assist them in their holiday shopping, up from 11% in 2013. And 36% said they would shop this year using a mobile phone, smartphone or tablet in-store in order to compare prices, and 21% believe that the technology to do that has improved significantly. At the same time, 44% said that an easy-to-use website would make them more likely to buy holiday gifts online.

In other digital highlights, 71% of respondents said they are using, would definitely use or are willing to try out a mobile tool that scans products as they’re placed in a shopping cart and keeps a running tab of the total amount spent. Additionally, 76% said they would definitely use or would be willing to try mobile services that provide them with real-time promotions and offers as they shopped in-store if those services were offered.



“With over one-third of survey respondents saying they would shop this holiday season using a mobile device in-store in order to compare prices, it is critical for retailers to make it seamless for consumers to trade on mobile applications by incorporating social media and mobile technologies into their stores and multichannel environments,” Richards said. “It is more important than ever that retailers switch from a mass-marketing approach to promotions and embrace mobile and other digital tools to deliver more targeted one-to-one offers.”



Early jump on buying holiday gifts

The survey revealed that 49% of consumers had already started, or planned to start, the majority of their shopping in September, well in advance of Thanksgiving and Black Friday.



Nearly one-fifth of survey respondents said they had already spent between $100 and $500 on holiday gift purchases by mid-September of this year. One contributing factor could be that over the past three years, the number of consumers who believe the best discounts of the season can be found before Thanksgiving and Black Friday has been rising steadily – to 18% in 2014 from 12% in 2012.



Discount retailers prevail

Discount retailers continue to be the top destination for shoppers this holiday season (71%). Fifty-eight percent of respondents said they will shop at online-only retailers, compared to 44% in 2012. And nearly half (47%) of consumers plan to buy gifts at department stores this year, up 12 percentage points from 2013.