Although consumers have shifted spending to everyday needs lately to cope with inflation, a survey sponsored by AI platform Coveo suggests they might be willing to widen their outlay on gifts during the upcoming holidays.
In a new research report entitled “Gift or Grinch? Unwrapping This Season’s Shopper Spending Plans” based on a survey of 4,000 adult consumers in the United States and United Kingdom, Cove examined consumer sentiment toward the upcoming holiday shopping season from Black Friday and Cyber Week through December. The AI platform determined from the survey the upcoming celebratory season could be a robust one for retailers. In the survey, 59% of shoppers said they plan to cut everyday purchases in order to prioritize gifting budgets, and 76% said they intend to maintain or increase gift purchases this holiday season.
The vast majority of consumers can be swayed to purchase unplanned items this holiday season, especially online, Coveo maintained, as 85% of respondents said they are prone to digital impulse buys. Some 90% of consumers said they might be persuaded to add items to existing online orders, suggesting retailers use new and traditional tools to prompt splurging.
Digital offers and discounts can entice most shoppers, as 80% of consumers said they discover special offers via purely digital sources, including email, social media platforms, online search and Internet marketplaces. The most popular individual response for deal discovery in general was through online or in-store store advertising and signage, with more U.K. shoppers preferring those forms of outreach than their U.S. counterparts, at 51% versus 44%, respectively. Only 13% of U.K. survey respondents said they learn about deals through print mailings/coupons, 14 points lower than the study’s U.S. cohort. Overall, 61% of consumers said specific site search categories such as Gifts for Dad or Gifts under $50 would be helpful when they shop. Almost a third of online shoppers have begun looking to Gen AI for gift guidance, Coveo maintained.
As for product categories, Black Friday and Cyber Week appeal to consumers looking for electronics, fashion and big box shopping, with 68% of survey respondents planning to visit one or more retailers during Black Friday and Cyber Monday.
Although some consumers find it a chore, 45% of U.S. and 39% of U.K. consumers said they enjoy the thrill of finding the perfect gift.
“Shopper enthusiasm and receptivity to persuasion are clear standouts in our annual holiday report findings, signaling that retailers have a major opportunity to capture a greater share of consumer spending during the upcoming shopping peak,” said Lisa Grayston, general manager, commerce at Coveo. “Consumers are going into the holiday shopping season ready to be inspired, which opens doors for retailers to lean on their technological prowess to convince and convert. Retailers willing to pioneer and experiment with AI-led strategies for delivering exceptional product discovery experiences and the most relevant offers on-the-fly are poised to thrive this holiday season and into 2025.”
