The holiday shopping season is basically underway as a new study reveals nearly half (44 percent) of consumers plan to do some of their shopping during pre-season sales events, like Amazon’s Prime Big Deal Days.
New research from Mintel shows that consumers have extra eyes on the major sale days this holiday season as concerns over inflation and rising prices continue to grow. Twenty-eight percent of winter holiday shoppers said it’s more critical this year to shop on days like Black Friday and Cyber Monday to try and curb rising costs.
For some, higher costs means less shopping – 42 percent say they plan to purchase fewer gifts due to inflation. Others intend to shop at lower-priced retailers (24 percent) to try and get more for their money.
“While the inflation rate may be cooling from peak highs, consumers are still feeling the squeeze of economic pressures,” Brittany Steiger, retail and ecommerce analyst at Mintel, said. “In 2022, consumers pulled back on their holiday spending, purchasing fewer gifts and setting spending limits. This year, our research shows that consumers will participate more in pre-season shopping sales, such as Amazon Prime Day, to take advantage of the deals and discounts as they remain value-conscious and look to spend as little as possible.”
While consumers intend to remain budget-conscious, many are planning to prioritize winter holiday spending for both gifts and celebrations. In fact, 62 percent of holiday shoppers say they are excited to resume even more in-person events and gatherings this year. While they plan to prioritize, 59 percent of consumers still want to spend the least amount of money possible, of course.
“To remain competitive, retailers must position sales and promotions throughout the season and consider personalized deals that are tailored to consumers’ preferences,” Steiger said. “Our research shows the most popular retail promotions are percentage-off discounts, BOGO deals, gift card offers and free gifts with purchase.”
The other route consumers are taking? Pre-owned gifts. Nearly half – 48 percent – of holiday shoppers said they are open to buying pre-owned gifts this year, and that number gets even bigger when talking about Gen Z shoppers (68 percent). The number of consumers planning to shop secondhand retailers this season grew eight percentage points compared to last year and is up to nearly a quarter of Gen Z and millennials (23 percent).
“Value is once again taking center stage this holiday shopping season. Discount and secondhand retailers are expected to see continued growth as shoppers look to stretch their dollars farther and look for more affordable ways to shop,” said Steiger. “… Lower-income shoppers are more likely to shop secondhand, looking to pre-owned items as a way to save money. As circular shopping becomes more widespread this holiday season, retailers and brands can embrace the trend by offering their own resale platforms.”