Price remains a key factor—but not the sole criteria—for when and how consumers shop this holiday season, according to the latest EY Holiday Survey.
A survey of 13,000 global consumers, including 1,000 in the U.S., found that 47 percent of U.S. shoppers said price is the most important attribute when deciding which retailer to purchase from. As for what they plan to buy this season on sale, 61 percent said they plan to buy technology-electronics, followed by 59 percent who plan to make apparel and accessories purchases. In addition, 41 percent of U.S. consumers they won’t begin shopping for the holidays until November or December, and 61 percent indicated that what they want to buy often aren’t included in sales until then. As for the focus on price, 56 percent express concerns about ability to pay for holiday gifts, with that percentage rising to 61 percent among Gen Z consumers.
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The survey doesn’t mean that consumers will only buy apparel when its on sale. Fifty-two percent said they are willing to pay full price “for important gifts if needed.”
“Consumers are feeling increased skepticism when it comes to making purchases,” EY Americas Retail Sector Leader Mark Chambers said. “The retailers that will come out ahead are the ones that have a solid understanding of how their customer segments are behaving, and how they are making purchasing decisions, and then tailoring their strategies accordingly.”
Overall, 70 percent of U.S. consumers said they enjoy the holiday sales events, but 63 percent also said they are “skeptical about the real value” of the seasonal discounts.
Other findings include 58 percent of U.S. shoppers noting that they plan to buy their holiday gifts online. Moreover, social shopping is growing, especially among the Gen Z crowd. EY found that with social media platforms on the rise, they are expected to become significant sales channels in future years. Twenty-four percent of U.S. consumers in the survey said they plan to make purchases via shoppable social media.
“As the range of sales channels to purchase items grows, the importance of creating seamless experiences both in store and digitally is paramount,” EY Americas Consulting Retail Leader Isaac Krakovsky said, adding that retailers that can meet the demands of multiple sales channels and build experiences seamlessly across channels will be able to create both loyalty and retention of customers well past the holiday season.