OVERVIEWMuch has been written about predicted and continuing-to-evolve trends for the 2012holiday retail shopping world. W...
INCREASED SPENDING FUELED BY                        DEALS & DISCOUNTSIncreased Holiday SpendingHoliday sales are expected ...
INCREASED SPENDING FUELED BY                     DEALS & DISCOUNTS                                                        ...
INCREASED SPENDING FUELED BY                     DEALS & DISCOUNTS                                                      (c...
CONSUMERS WIN WITH EVOLVED                   SHOPPING POLICIES/TOOLSEarly Holiday Shopping                                ...
CONSUMERS WIN WITH EVOLVED                   SHOPPING POLICIES/TOOLS                                                      ...
CONSUMERS WIN WITH EVOLVED                   SHOPPING POLICIES/TOOLS                                                      ...
CONSUMERS & RETAILERS                            EMBRACING TECHNOLOGYRetailer Mobile IntegrationThe increase in consumer m...
CONSUMERS & RETAILERS                                  EMBRACING TECHNOLOGY                                               ...
CONSUMERS & RETAILERS                            EMBRACING TECHNOLOGY                                                     ...
BLACK FRIDAY/WEEKEND RESULTS                     SHOWING SUCCESS                   DISCOUNT WEEKEND                       ...
BLACK FRIDAY/WEEKEND RESULTS                          SHOWING SUCCESS                                                     ...
BLACK FRIDAY/WEEKEND RESULTS                     SHOWING SUCCESS                                                      (con...
15   | 2012 Holiday Shopping Trends | December 2012
Holiday Shopping Trends 2012 - The Buntin Group
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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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Holiday Shopping Trends 2012 - The Buntin Group

  1. OVERVIEWMuch has been written about predicted and continuing-to-evolve trends for the 2012holiday retail shopping world. What is common across all is the fundamentalunpredictability of consumer behavior and the battle taking place among retailers to bein 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. 2 | 2012 Holiday Shopping Trends | December 2012
  2. INCREASED SPENDING FUELED BY DEALS & DISCOUNTSIncreased Holiday SpendingHoliday sales are expected to increase in 2012, but many post-recession shoppers will still be “thrifting” — religiously seeking thebest deal/lowest price for top merchandise.• Consumer confidence in November was 73.7, the highest in 5 years, up from 61.3 in August. 2012• Lower unemployment (7.9% as of 2011 Oct. 2012 vs. 9.0% in Oct. 2011).• Housing market improvement (value and sales). *EstimatedThe Conference Board Consumer ConfidenceIndex, November 2012 Bureau of Labor Statistics, October National Retail Federation (NRF) Holiday Shopping 201220123 | 2012 Holiday Shopping Trends | December 2012
  3. INCREASED SPENDING FUELED BY DEALS & DISCOUNTS (continued)Deep DiscountingAccording to a 2012 National Retail Federation (NRF)study, the most important factor driving consumer storechoice 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. SOCIAL MEDIA DISCOUNTS of consumers expect Facebook users are taking 73% to find great deals advantage of special discounts, or this holiday “flash deals,” by liking Facebook season, up 18% pages such as Kohl’s and from last year. 75% use Facebook Walmart. to find discounts Booz & Co. Holiday Retail Outlook 2012 LivePerson Holiday eCommerce Survey 20124 | 2012 Holiday Shopping Trends | December 2012
  4. INCREASED SPENDING FUELED BY DEALS & DISCOUNTS (continued)Free/Discounted ShippingFree shipping has become more of anecessity for retailers to compete.Deloitte’s 2012 Annual HolidaySurvey found that consumers are56% more likely to buy from a storethat offers free shipping and freereturns.• 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 of retailers 30% will offer free shipping Survey says that 90% of retailers plan without to offer some form of free 90% conditions shipping, and 30% will offer free of retailers will offer some type of free shipping without conditions. shipping5 | 2012 Holiday Shopping Trends | December 2012
  5. CONSUMERS WIN WITH EVOLVED SHOPPING POLICIES/TOOLSEarly Holiday Shopping Holiday Shopping Before NovemberHoliday shopping starts earlier andearlier every year, a combination of 42%stated consumer intent, as well as 41.4%retailers that continue to push the 41%timing of deals earlier during theshopping season. 40%• Many stores like Walmart started Black 39% 38.9% Friday deals on Thanksgiving, with hourly deals and an in-stock guarantee on 38% popular items.• While some stores began offering Black 37% Friday deals online, other stores such as 2011 2012 Kohl’s and Sears started Black Friday NRF Holiday Survey, 2012 sales 2-5 days in advance. Holiday shoppers are continuing to shop earlier and earlier every year.6 | 2012 Holiday Shopping Trends | December 2012
  6. CONSUMERS WIN WITH EVOLVED SHOPPING POLICIES/TOOLS (continued)Price MatchingRetailers have embraced price matching and are even facilitating pricecomparisons to combat consumer use of smartphones to find the best price.Because of increased online retailer penetration in holiday shopping, manybrick-and-mortar retailers have established price-matching programs toincrease 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.7 | 2012 Holiday Shopping Trends | December 2012
  7. CONSUMERS WIN WITH EVOLVED SHOPPING POLICIES/TOOLS (continued)LayawaysRetailers made adjustments to their layaway programs to lock in customersbefore their competitors and to eliminate negative opinions about hidden feesthat 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. Shoppers Shoppers Who Used 12% 43% Who Were Layaway First- Timers NRF BIGInsight 2012 Black Friday Weekend Results8 | 2012 Holiday Shopping Trends | December 2012
  8. CONSUMERS & RETAILERS EMBRACING TECHNOLOGYRetailer Mobile IntegrationThe increase in consumer mobile phone shopping is old news.However, retailers are increasingly using mobile devices to improve theoverall 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.9 | 2012 Holiday Shopping Trends | December 2012
  9. CONSUMERS & RETAILERS EMBRACING TECHNOLOGY (continued)Consumer ShowroomingContinuing from last year, consumers are using their smartphones to comparepricing, read product reviews and research different products. • 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 37.9% 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.Prosper Mobile Insights Survey, 201210 | 2012 Holiday Shopping Trends | December 2012
  10. CONSUMERS & RETAILERS EMBRACING TECHNOLOGY (continued)Consumer Social & Digital UsageSocial and online shopping, along with the use of multiple tech devices, isgiving 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. 64% 53% Tablet owners plan to use their devices 73% use Pinterest 70% use Twitter to more than smartphone users to research & to research ideas read reviews purchase gifts, décor & other holiday items. LivePerson Holiday eCommerce Survey 2012 NRF Holiday Survey, 201211 | 2012 Holiday Shopping Trends | December 2012
  11. BLACK FRIDAY/WEEKEND RESULTS SHOWING SUCCESS DISCOUNT WEEKEND DISCOUNT WEEKEND ONLINE SALES MOBILE SHOPPING 30% 24.0% 25% 20% 14.2% 15% 10% 5.3% 5% 0%  21% from 2011  30% from 2011 2010 2011 2012 IBM Digital Analytics NRF BIGInsight 2012 Black Benchmark Friday Weekend Results 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%).12 | 2012 Holiday Shopping Trends | December 2012
  12. BLACK FRIDAY/WEEKEND RESULTS SHOWING SUCCESS (continued) % of Shoppers That Were in Stores by Midnight on Black Friday 2011 24.4%2012 28.0% BLACK FRIDAY SHOPPING Brick-and-Mortar Almost 15% more shoppers were at stores by midnight on Black Friday than last year. ShopperTrak Black Friday Sales 2012 13 | 2012 Holiday Shopping Trends | December 2012
  13. BLACK FRIDAY/WEEKEND RESULTS SHOWING SUCCESS (continued) 44% of Americans shopped during the holiday discount weekend. Black Friday foot traffic was up 3.5%. While total holiday 80% spending is expected to of shoppers took advantage increase, overall retail of retailers’ promotions by sales were down 1.8%. purchasing non-gift items. ShopperTrak Black Friday Sales 2012 NRF BIGInsight 2012 Black Friday Weekend Results14 | 2012 Holiday Shopping Trends | December 2012
  14. 15 | 2012 Holiday Shopping Trends | December 2012

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