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Holiday Shopping Trends 2012 - The Buntin Group

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The Buntin Group presents Holiday Shopping Trends for 2012.
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Page 1: Holiday Shopping Trends 2012 - The Buntin Group
Page 2: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 20122

OVERVIEWMuch has been written about predicted and continuing-to-evolve trends for the 2012 holiday retail shopping world. What is common across all is the fundamental unpredictability of consumer behavior and the battle taking place among retailers to be in the right place with the right message and deal to capture available dollars. • Experts predicted higher consumer spending during the holidays, and retailers have

initiated innovative actions to lock down retail sales from tech-savvy and post-recession shoppers.

• Most evident is broader incorporation of technology into the shopping experience — a two-way street between retailers and the ever-demanding consumer, who is taking advantage of every opportunity, controlling where and how they buy.

• However, retailers are expected to compete on price first and foremost through delivery of engaging deals and discounts if they want to capture the attention of the modern-day thrifty shopper.

• As consumer priorities have shifted, loyalty to specific retailers has eroded. Consumers want transparency, convenience and efficiency in every interaction. And, they want to feel empowered by mobile technology, appreciated by the stores they shop in and most of all, have access to great holiday deals.

• Critical for all retailers is providing an environment that enables a “consumer win.” By giving shoppers more control and accessibility, retailers are renewing — and feeding — consumer excitement about holiday shopping.

Page 3: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 20123

INCREASED SPENDING FUELED BYDEALS & DISCOUNTS

Holiday sales are expected to increase in 2012, but many post-recession shoppers will still be “thrifting” — religiously seeking the best deal/lowest price for top merchandise.

4.1% Increase

*Estimated

2012

$562.1

billion

$586.1

billion*

20112012

• Consumer confidence in November was 73.7, the highest in 5 years, up from 61.3 in August.• Lower unemployment (7.9% as of

Oct. 2012 vs. 9.0% in Oct. 2011).• Housing market improvement

(value and sales).

The Conference Board Consumer Confidence Index, November 2012 Bureau of Labor Statistics, October 2012 National Retail Federation (NRF) Holiday Shopping 2012

Increased Holiday Spending

Page 4: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 20124

INCREASED SPENDING FUELED BYDEALS & DISCOUNTS

(continued)

According to a 2012 National Retail Federation (NRF) study, the most important factor driving consumer store choice will be the availability of sales and discounts.• JCPenney, which has implemented a no-couponing, everyday low

pricing model, has seen decreasing sales and a drop in brand preference.• Target, which announced in early September that they were going to

avoid deep discounting, has already reversed this with new holiday policies that include a price-matching program and an announcement that they will be “exceptionally competitive on price” during the holidays.

of consumers expect to find great deals this holiday season, up 18% from last year.

73%75% use Facebook to find discounts

SOCIAL MEDIA DISCOUNTSFacebook users are taking advantage of special discounts, or “flash deals,” by liking Facebook pages such as Kohl’s and Walmart.LivePerson Holiday eCommerce Survey 2012

Deep Discounting

Booz & Co. Holiday Retail Outlook 2012

Page 5: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 20125

Free shipping has become more of a necessity for retailers to compete. Deloitte’s 2012 Annual Holiday Survey found that consumers are 56% more likely to buy from a store that offers free shipping and free returns.• Walmart now offers a $10 flat rate for

same-day shipping, challenging Amazon’s starting price of $8.99 + $0.99 per item for same day.• Shop.org’s Pre-Holiday Merchant 2012

Survey says that 90% of retailers plan to offer some form of free shipping, and 30% will offer free shipping without conditions.

90%of retailers will offer

some type of free shipping

30% of retailers will offer free

shipping without

conditions

INCREASED SPENDING FUELED BYDEALS & DISCOUNTS

(continued)

Free/Discounted Shipping

Page 6: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 20126

CONSUMERS WIN WITH EVOLVED SHOPPING POLICIES/TOOLS

Holiday shopping starts earlier and earlier every year, a combination of stated consumer intent, as well as retailers that continue to push the timing of deals earlier during the shopping season.• Many stores like Walmart started Black

Friday deals on Thanksgiving, with hourly deals and an in-stock guarantee on popular items.• While some stores began offering Black

Friday deals online, other stores such as Kohl’s and Sears started Black Friday sales 2-5 days in advance.

2011 201237%

38%

39%

40%

41%

42%

38.9%

41.4%

Holiday Shopping Before November

NRF Holiday Survey, 2012

Holiday shoppers are continuing to shop earlier and earlier every year.

Early Holiday Shopping

Page 7: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 20127

Retailers have embraced price matching and are even facilitating price comparisons to combat consumer use of smartphones to find the best price. Because of increased online retailer penetration in holiday shopping, many brick-and-mortar retailers have established price-matching programs to increase foot traffic.• Best Buy changed its price-matching policy to include all

competitors, specifically targeting Amazon. In the past, Best Buy excluded price matching of online retailers.• Target stores will match online pricing for identical items

at competing sites such as toysrus.com, walmart.com, and amazon.com. Customers can show the item on a smartphone or simply ask customer service to look it up.• Ebay’s PayPal unit is offering cash back for any price

discrepancies discovered by consumers on products purchased using PayPal.

CONSUMERS WIN WITH EVOLVED SHOPPING POLICIES/TOOLS

(continued)

Price Matching

Page 8: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 20128

Retailers made adjustments to their layaway programs to lock in customers before their competitors and to eliminate negative opinions about hidden fees that some customers have experienced in the past. • Walmart offered early layaway access for those who “like” their Facebook page. They

also reduced the layaway fee from $15 to $5, which is then refunded with a Walmart gift card.• Fred’s Dollar Stores now offers a $1 layaway fee, which has resulted in a major

increase in layaway traffic for this retailer.

12%Shoppers Who Were

First-Timers

Shoppers Who Used Layaway

43%

NRF BIGInsight 2012 Black Friday Weekend Results

Layaways

CONSUMERS WIN WITH EVOLVED SHOPPING POLICIES/TOOLS

(continued)

Page 9: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 20129

CONSUMERS & RETAILERS EMBRACING TECHNOLOGY

The increase in consumer mobile phone shopping is old news. However, retailers are increasingly using mobile devices to improve the overall in-store experience.• Macy’s sales reps are carrying tablets

to help answer questions and check inventory to help capture a sale.• Target has added in-store QR codes to

the top 20 toys, so that if an item is sold out in stores, it can be instantly purchased online.• Walmart has upgraded its app, so

shoppers can more easily access deals, items on their shopping list and gift suggestions.

Retailer Mobile Integration

Page 10: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 201210

Continuing from last year, consumers are using their smartphones to compare pricing, read product reviews and research different products.

Prosper Mobile Insights Survey, 2012

• 55% of shoppers plan to use a smartphone or tablet to shop this year.• 53% of shoppers expect to research

holiday purchases online more than in 2011.• Last year, Amazon sparked outrage

among retailers after offering its price comparison smartphone app, Price Check, which compares retail prices with Amazon prices through barcode scans.

CONSUMERS & RETAILERS EMBRACING TECHNOLOGY

(continued)

Consumer Showrooming

37.9%

Page 11: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 201211

Social and online shopping, along with the use of multiple tech devices, is giving consumers increased control and flexibility in how and where they buy.• Holiday shoppers plan on shopping online 11% more than last year.• Nearly 40% of Americans will use social media to interact with brands this holiday.• 30% of traffic to apparel sites is coming from Pinterest.

Tablet owners plan to use their devices more than smartphone users to research & purchase gifts, décor & other holiday items.

64% 53%

73% use Pinterest to research ideas

70% use Twitter to read reviews

LivePerson Holiday eCommerce Survey 2012 NRF Holiday Survey, 2012

Consumer Social & Digital Usage

CONSUMERS & RETAILERS EMBRACING TECHNOLOGY

(continued)

Page 12: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 201212

BLACK FRIDAY/WEEKEND RESULTS SHOWING SUCCESS

2010 2011 20120%

5%

10%

15%

20%

25%

30%

5.3%

14.2%

24.0%

DISCOUNT WEEKEND MOBILE SHOPPING

21% from 2011 30% from 2011

DISCOUNT WEEKEND ONLINE SALES

Online retail sales saw massive increases throughout the holiday discount weekend. Mobile traffic increased 69% from last year, with the majority of

mobile shopping coming from iPads (41%) and iPhones (36%).

NRF BIGInsight 2012 Black Friday Weekend Results

IBM Digital Analytics Benchmark

Page 13: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 201213

Almost 15% more shoppers were at stores by midnight on

Black Friday than last year.

Brick-and-MortarBLACK FRIDAY SHOPPING

ShopperTrak Black Friday Sales 2012

2011

2012

24.4%

28.0%

% of Shoppers That Were in Stores by Midnight on Black Friday

BLACK FRIDAY/WEEKEND RESULTS SHOWING SUCCESS

(continued)

Page 14: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 201214

SALE

Black Friday foot traffic was up 3.5%.

While total holiday spending is expected to increase, overall retail sales were down 1.8%.

of Americans shopped during the holiday discount weekend.

44%

of shoppers took advantage of retailers’ promotions by purchasing non-gift items.

80%

NRF BIGInsight 2012 Black Friday Weekend ResultsShopperTrak Black Friday Sales 2012

BLACK FRIDAY/WEEKEND RESULTS SHOWING SUCCESS

(continued)

Page 15: Holiday Shopping Trends 2012 - The Buntin Group

| 2012 Holiday Shopping Trends | December 201215


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