New Oracle research shows the inflation grinch
is pushing global consumers to shop early and price hunt, while 71%
say they will consider a store financing plan
Retailers looking to tech to optimize pricing
and inventory to meet consumer demands
AUSTIN,
Texas, Oct. 26, 2022 /PRNewswire/ -- A new Oracle
Retail consumer research study found that price will be
paramount this holiday season as shoppers are increasingly worried
about inflated costs and tighter budgets. In response, 77% of
consumers already have, or plan to, shop early to ensure they can
get the items they want and have more time to shop for deals.
Nearly 60% of shoppers said current economic factors will cause
them to spend less overall and 71% said they would consider a store
financing or payment plan to cover the costs of gifts. Ultimately,
shoppers are ready to hit buy if the price is right, with 47% of
people noting that cost will be the main factor in moving them from
a browser to a buyer.
"Next to inventory availability, price is the leading factor in
how and where consumers will shop this holiday season," said
Mike Webster, senior vice president
and general manager of Oracle Retail. "For retailers still dealing
with the constant loop of limited inventory supplies or surpluses,
getting merchandise and pricing strategies right will be make
or break when it comes to managing margins and customer
expectations."
The survey polled 8,107 global consumers across 11 different
countries in late September 2022,
including 1,000 people in the United
States. The Untold Insights survey asked consumers about
holiday shopping plans and their post-pandemic retail habits.
Unwrap your complimentary copy of the Retail Shopper
Outlook: Consumer Research 2022 report.
The price is right
Some 34% of people are worried they
won't have the money they would like to spend on holiday shopping
due to rising commodity prices and 36% are concerned that the gifts
they want to buy will be more expensive this year. As such,
shoppers are committing extra time to finding the best deal and are
considering payment plans to check items off their gift list.
- 71% of shoppers said they would consider a store financing or
payment plan to pay for gifts over time (25% of people said they
have never used one of these plans before)
- 77% said they will shop around for more deals and
discounts
- 71% said they would wait for big sales moments and store
holiday sales from their favorite retailers
- 75% said they would do more price comparisons online and
in-stores
- 73% said they would look to shop at more discount stores (such
as TJMaxx and ROSS)
Nearly three-quarters of people (71%) also plan to wait for big
retail sales moments. While Black Friday still takes the crown with
47% of shoppers planning to participate, not far behind are Amazon
Prime Days (43%) and after holiday sales (30%).
Making a list, checking it twice
Tired of staying in,
shoppers are eager to give the gift of experiences this year. Top
gifts consumers plan to buy more of this holiday season
include:
- 34% Experiences with friends and family
- 30% Fashion apparel
- 29% Gift cards
- 29% Beauty/personal care products
- 28% Footwear
- 28% Electronics
- 26% Toys
- 20% Non-fungible tokens (NFTs) or digital
collectables
Stores are back, will the inventory be there?
With
restrictions largely lifted, people are heading back to stores to
holiday shop, but expectations for inventory availability remain
high.
- 43% of people plan to shop mostly in store and 23% in store and
online
- 29% of people said out-of-stock items would constitute a bad
experience
- 22% said they would simply go to another retailer if a product
was not in stock
"Merchandise in the wrong place at the wrong time can be the
biggest cost to a retailer," added Webster. "We know that
out-of-stock inventory compromises top line growth and customer
satisfaction. Equally as important is its impact on margins.
Retailers must be proactive in their placement of inventory as they
consider size, style, and color of the assortment to avoid
massive store-to-store transfer costs."
Delivery demands
Home delivery (56%) is still by far
the most popular method to collect items bought online, compared to
curbside (21%) or in-store pick up (16%). This creates urgency for
retailers to ensure gifts are delivered on time, while providing
clear transparency along the way.
- 47% of people said fast delivery often determines who they will
order from
-
- 11% of people expect same day delivery
- 40% 1-2 day delivery
- 35% 3-5 day delivery
- 25% fear that gifts won't arrive on time
- 62% are willing to pay more for expedited/guaranteed
delivery
- 61% would consider booking a standalone delivery/collection
service (like a DoorDash) to ensure they get their gifts on
time
"With consumers headed back to stores, retailers must create an
endless aisle experience," said Webster. "Whether this means an
associate helping an in-store shopper find an item online and
shipping it to their home or giving online shoppers an accurate
view of product availability at their nearest physical location. To
maintain loyalty, nearly every interaction needs to end with the
consumer getting the product they want in time for the holidays.
And that execution begins with order transparency."
Influencers not that influential
Social media
continues to play a larger role in how consumers discover new
offers, products, and brands. In 2022, social media jumped to the
top spot (21%) in how consumers find the most compelling offers and
products, followed by email at 19% (up from 10% in 2021), and
in-store promotions at 15%.
- Shoppers preferred social platforms include:
-
- 26% Facebook
- 25% Instagram (33% for GenZ)
- 15% YouTube
- 14% TikTok (22% for GenZ)
Despite the hype, less than 1% of consumers turn to the
metaverse to discover new products. And despite the rise in
influencer B2C marketing, only 12% of consumers noted that seeing
their favorite influencers suggest a product as the reason for them
to hit the buy.
Returns in, regifting out
More than half of consumers
said they anticipate returning some gifts this year, with 30%
saying they would return half to all of them.
- 48% of people prefer to take their returns to the store, with
29% choosing to mail returns to the retailer
- 54% of global consumers make their returns within a week, 24%
return immediately, 14% return within a month, 8% of shoppers
rarely make returns, often forgetting to make them at all
- Parents (33%) more likely to mail back their returns than
shoppers without kids (24%)
- Men (32%) are more likely to make their returns immediately
than women (26%)
"With many retailers beginning to charge for returns and over a
quarter of shoppers already planning to make them, this holiday
season could be end up as a detriment to customer loyalty," noted
Webster. "While a return fee makes economic sense, retailers are
likely to meet resistance from buyers who will be annoyed by the
added cost and less likely to use the return opportunity to browse
and buy additional items."
Unwrap your complimentary copy of the Retail Shopper
Outlook: Consumer Research 2022 report, and learn more about
how Oracle Retail is helping retailers brace for the holiday rush
and use data science to provide a holistic view of shopper
interactions to make better inventory buying decisions and deliver
more relevant offers to customers.
*Gen Z (18-24); Millennials (25-39); Gen X (40-54); Boomers
(55+)
About Oracle
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us at www.oracle.com.
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SOURCE Oracle