As we look ahead to Small Business Saturday coming up on November 24, are you ready to cash in on the 2018 holiday shopping season? Staying on point with the latest trends can help you deliver high-demand shopping experiences. Here’s a preview from PwC’s 2018 Holiday Outlook and Deloitte’s 2018 Holiday Shopping Survey, plus some last-minute tips to put some extra jingle in your holiday sales.
Shoppers planning to spend big
With a strong economy and record-high consumer confidence, holiday shoppers are poised to spend more money this holiday season. Deloitte forecasts a 5% to 5.6% increase in retail sales this year. Consumers say they plan to buy 16 gifts this year on average, and more than half of those surveyed will splurge on gifts for themselves, too. Total holiday spending per household on average is expected to be $1,536, including $611 on experiences, $525 on gifts and $411 on non-gifts. Gift cards are expected to be the most popular item.
Retailer tip: Create a welcoming environment where shoppers will want to spend time and money. Host events that invite shoppers to participate in fun events like contests, in-store celebrity appearances and special experiences.
In store + online
According to PwC’s forecast, 91% of consumers will do some shopping in stores and 84% will do some online shopping. Shoppers who combine online and in-store shopping are the biggest spenders — they spend nearly twice as much as those who shop in stores only.
Retailer tip: Leverage your digital presence to drive consumers to shop both online and in stores. A holiday giveaway targeting high-spending online shoppers may entice them to spend even more in-store. Likewise, offering exclusive online deals to in-store shoppers may inspire them to make additional purchases online.
Mobile usage driving growth
Although most online shoppers still use a desktop or laptop for their holiday shopping, mobile usage has seen the largest increase in Internet purchase activity over the last year, according to Deloitte’s survey data. Mobile device users commonly use their phone for the following:
In the PwC survey, nearly 30% of consumers will pay using a smartphone or other wearable device in store.
Retailer tip: Make your mobile shopping experience easy to navigate so shoppers can find what they want and check out seamlessly. If you offer smart payment, promote this option with special perks or loyalty points for shoppers who use it.
Attracting younger shoppers
Consumer groups most likely to spend more this year compared to last year include high-earning millennials (income $70K+), millennial dads, Hispanic millennials, African-Americans and Gen Z, according to PwC. Reaching these groups might be the secret to success this holiday season.
According to Deloitte’s survey data, 87% of Gen Z and 75% of millennials are willing to pay more for socially compliant, sustainable products. Entertainment value is another big draw — think shoppable photos, videos, buttons and gamification. It’s also worth noting that millennials are the largest pet-owning segment — and they spend more money on their pets than any other group.
Retailer tip: A tech-savvy, mobile-friendly approach can help you connect with younger shoppers who plan to do most of their shopping online. Finding fresh ways to highlight sustainability and appeal to pet owners might earn a few extra points, too!
Find your sweet spot
Retailers selling gift-worthy items and experiences may have the most to gain, but businesses across a range of industries can take advantage of the holiday spending season with gift card promotions and other outside-the-box incentives. Whatever your business – and whatever your business goals – may be, California Bank & Trust business bankers can help your organization grow and reach new levels of success.[cite::171::cite] [cite::172::cite]