Holiday Shopping Predictions

Here's some great information from our friends at Spots n' Dots, the Daily News of TV Sales.

Each year Booz & Co., a business consulting firm, surveys consumers, retail store staff and retail executives to get an idea of what the retail industry can expect in the holiday season. This year, Booz predicts that holiday spending will be up just slightly over last year. Consumers are still very cautious about spending; 52% say affordability will be a big consideration in their purchase decisions. But 73% expect to find great deals this holiday, up from 62% in 2011.

Just over 50% say that just surviving the economic downturn is a good enough reason to celebrate this year. Fifty-three percent intend to purchase a luxury item--typically one that the whole family can enjoy. Last year, only 41% were planning a luxury purchase.

Gift cards will once again be very popular; 80 million shoppers plan to purchase them, up 4% from 2011. As we have been reporting for quite a while, shoppers are getting more and more internet savvy. For instance, 45% of consumers plan to give a downloadable gift this

year--like an eBook, music or a movie. But that comfort with the web will pose a very real threat to brick and mortar stores, says Booz. Forty percent of shoppers say that their buying strategy will involve “showrooming” (or “showcasing” in Booz’ parlance), browsing in stores for items that they subsequently purchase online.

"The biggest challenge this season for brick-and-mortar retailers is determining how to drive more than their fair share of 'showcasing volume' to their websites rather than Amazon.com or another competitor," said Thom Blischok, chief retail strategist for Booz & Co. "While technology enhancements and economic uncertainty will both impact this holiday season, there is a dose of optimism compared to 2011, as people shop with a value-seeking mindset."

Booz says in order to overcome this showcasing, retailers have to have robust websites of their own and apps that can direct shoppers to their own internet sites, rather than others like Amazon.com. They need to use QR code driven promotions, give free shipping for items bought in their online stores and make sure that salespersons are as familiar with the offerings at the retailers’ websites as they are with what is one the floor. "Retailers will need to adjust their holiday sales strategies to embrace an evolving consumer mindset, favoring a more seamless shopping experience through smartphones and in-store opportunities," said Nicholas Hodson, of Booz & Co.'s Consumer & Retail practice.