Holiday Shopping Forecast 2014: A new report says holiday shopping for 2014 will be marked by caution.
A new report from PwC US and Strategy, called “2014 Holiday Outlook: Top trends, consumer behaviors and implications for retailers,” was released.
The groups surveyed more than 2,200 shoppers nationwide.
The 2014 holiday shoppers are planning their holiday spending in four very distinct waves.
Wave one includes the early holiday shoppers, where 21 percent of all holiday spend will occur from now through the Thanksgiving weekend.
Survivalists plan to spend $86 in this wave, while selectionists plan to spend $202. Steven Barr, PwC’s U.S.
retail & consumer practice leader said “The upcoming holiday shopping season will look very similar to 2013 as shoppers remain cautious on the economy and are concerned about disposable income, the rising cost of living, and insufficient salary, leading surveyed participants to project an average household spend of $684, down from $735 in 2013.” Wave two encompasses the Black Friday period – 21 percent of spend will occur over the week of Black Friday.
Survivalists plan to spend $84 in this wave, while selectionists plan to spend $205.
Wave three includes the mid-season spending frenzy, where fifty percent of the holiday spend will happen between Thanksgiving and Christmas with a significant portion of that spend in the last ten days before Christmas.
Survivalists plan to spend $184 during this period, compared to $489 for selectionists.
“What we learned was that to compete effectively at retail this year, it demands a new level of organizational and operational excellence, which we outline in our report.
Retailers have been cautioned about the two distinct groups emerging from today’s economic realities, and we’re offering ways on how to appeal to both groups and have a winning holiday shopping season in 2014,” Barr said.
Wave four is post-season deal seeking, with eight percent of holiday spend projected to be after the holidays as shoppers continue their “affordability” journey.
Survivalists plan to spend $23; selectionalists plan to spend $83.
Getting promotions well-timed and relevant to shopper spend profiles is critical.
The 2014 holiday shopper will “travel” to stretch every dollar.
For survivalists, 53 percent plan to visit two to three stores/sites and 23 percent plan to visit three to four stores/sites.
For selectionists, 47 percent plan to visit two to three stores, and 28 percent plan to visit three to four stores.