A considerable 26 per cent of consumers intend to spend less this holiday season compared to the last. This trend is especially prominent among lower-income households, with 38 per cent of those earning below $45K planning to reduce their holiday expenditure, according to the latest Holiday Outlook Survey by global consulting firm AlixPartners.
The survey highlighted three main strategies that consumers are likely to adopt to save money: 33 per cent are contemplating opting for more affordable brands, 24 per cent plan to cut down on self-gifting, and 38 per cent are poised to purchase at least half of their gifts on sale.
Retailers could expect less impact in the footwear and apparel categories, witnessing a decline of 3 and 6 per cent respectively. The survey emphasised the importance for retailers to adjust to the changing preferences of consumers, with over 70 per cent of them planning to research products and prices online before making a purchase.
In light of the prevailing savings imperative, technological advancements in AI present a promising avenue for retailers. A significant portion of the survey respondents showed openness to AI enhancements, including improved product recommendations, personalised offers, and streamlined service with virtual assistance. Thus, leveraging AI capabilities could potentially be a pivotal strategy for retailers in navigating the consumer landscape this holiday season.
ALCHEMPro News Desk (NB)
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