Spending on the holiday season is expected to rebound to – and even surpass – pre-pandemic levels this year for the first time.

This week, we release our Q3 2023 Home Furnishing Benchmark Report and explore how changing consumer behavior has affected holiday spending predictions.

THIS WEEK’S HIGHLIGHTS

  • Curse of Knowledge: Why product knowledge is the no. 1 customer success factor.
  • Doorcounts is becoming Trakwell.ai: Click HERE to learn more.

  • OUT NOW – Q2 2023 Benchmark Report: Click HERE to see how your store compares to the industry average.

FOOT TRAFFIC INDEX

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

Holiday Spending Predictions

Spending on the holiday season is expected to rebound to – and even surpass – pre-pandemic levels this year for the first time.

But, surprisingly, it’s not gifts that consumers will be splurging on the most in the runup to Christmas, according to a new report Tuesday from Deloitte. Findings from 4,330 consumers surveyed between Aug. 30 and Sept. 8 found shoppers are eager to get going with their holiday shopping, and maybe even indulge on themselves.

Among the findings: Consumers are expected to spend an average of $1,652 on holiday-related purchases, up 14% from last year and surpassing an average of $1,496 they spent in 2019.

As many as 82% of shoppers said they plan to spend on non-gift purchases such as decorations. That’s up from 77% last year. It’s not quite back to the 2019 levels where it was 88%, but it is inching up this year.

Click HERE to view the full report.

Holiday season preparations

Today’s consumers are both trading down and selectively splurging.

They’re buying big, established brands and exploring newer, smaller ones. Many of their buying decisions are becoming a matter of “and,” not “or.” 44% of consumers around the world (and 60% of Gen Zers and millennials) say that they plan to splurge, particularly on purchases that are experiential or provide immediate gratification—such as restaurants or travel.

The majority of consumers now use at least three channels for each purchase journey. And while 75% of consumers want a seamless omnichannel experience, only 25% are satisfied with the experience that retailers provide.

As we keep seeing more and more, consumers are gravitating toward sustainable products. 84% say that sustainability is a very important factor in their purchase decisions. However, 50% say they’re not sure whether they would pay a premium for sustainable products in times of inflation.

Click HERE to learn more about consumer behavior.

 

Retail Snippets

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Curse of Knowledge: Why product knowledge is the no. 1 customer success factor.


Supply chain: Can nearshoring prevent the next supply chain crisis?

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