- Around 82 per cent of US consumers plan to shop online for the holidays in 2023, slightly more than those planning in-store shopping.
- Despite inflation and reduced discretionary spending, online shopping remains preferred, with e-commerce now making up 44 per cent of sales revenue.
- Retail trends towards private brands and value-centric shopping persist.
The number of consumers in the US planning to do at least some of their holiday shopping online rose to 82 per cent in 2023, as per a survey. Overall, consumers plan to do more of their holiday shopping online this year, up to 47 per cent from last year’s dip below in-store plans to 45 per cent and just slightly above this year’s in-store plans.
Online-only sites are still the top choice among consumers for holiday shopping, and grew the most of all planned shopping destinations compared to last year. Enduring inflation has sent discretionary spending on a steady trajectory of year-over-year declines, but it has yet to have a significant impact on where US consumers are shopping, according to a recent holiday purchase intentions consumer survey from Circana, formerly IRI and The NPD Group.
The e-commerce channel has gained some share within discretionary general merchandise spending this year, now accounting for 44 per cent of sales revenue, but performance in all other channels remains relatively steady, as per Circana’s consumer receipt-based data.
Marshal Cohen, chief retail industry advisor for Circana, said, “The role that online shopping growth will play in this holiday shopping season is bigger than just where consumers are making purchases. E-commerce doesn’t promote social shopping and impulse spending the same way in-store shopping does—both critical components to sales growth during the holiday season, particularly as consumers continue to be faced with elevated prices, forcing more trade-off decisions in their purchases.
“Consumers have shifted behaviour within the stores they currently shop, reflected by share gains in private brands, but the anticipated downshift toward more value-centric shopping has not yet materialised at a retail channel level. The continued sales declines in many industries and slowing growth in others may signal that retail is at a crossroads. Holiday spending, and consumer response to fourth-quarter promotions, will be important indicators of what to expect in 2024.”
Fibre2Fashion News Desk (NB)