A new Mintel research study reveals 44% of consumers in the United States who intend to shop in the 2023 winter holiday season said they plan to do so during a pre-season sales event such as Amazon Prime Day.
Despite such events, which have helped push holiday promotions earlier into the year and made early October an important gift-purchasing period, Black Friday and Cyber Monday remain targeted shopping occasions for 45% of consumers, according to Mintel. Indeed, 28% of winter holiday shoppers said shopping on Black Friday or Cyber Monday is even more critical because of inflation/rising prices. When asked how inflation impacts their spending, 42% of winter holiday shoppers said they are purchasing fewer gifts, while 24% said they are switching to lower-priced retailers.
Concerned about factors such as inflation and interest rates, 59% of consumers who plan to do winter holiday shopping in 2023 said they want to spend the least amount of money possible, according to Mintel. They continue to prioritize winter holiday spending. The study suggested consumers have left room in their budgets for gifting and celebrations, with 62% of winter holiday shoppers saying they are excited to attend in-person events and gatherings of the kind that were quashed by the COVID-19 pandemic. In some cases, consumers are turning to alternative sources for holiday gifts: 48% of winter holiday shoppers said they are open to shopping for pre-owned gifts. The number increases to 68% of GenZ consumers ages 18-24. The proportion of consumers planning to shop for the holidays in secondhand retailers grew eight percentage points compared to last year, rising to 23% of Gen Zs and Millennials, according to Mintel.
Overall, Mintel predicted winter holiday sales would grow 5.4% to reach $1.07 trillion.
Brittany Steiger, retail and e-commerce analyst at Mintel, said, “While the inflation rate may be cooling from peak highs, consumers are still feeling the squeeze of economic pressures. 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. To remain competitive, retailers must position sales and promotions throughout the season and consider personalized deals that are tailored to consumers’ preferences. Our research shows the most popular retail promotions are percentage-off discounts, BOGO deals, gift card offers and free gifts with purchase. While direct communications and social media will have the farthest reach, partnering with third parties such as shopping portals can be a great way to consolidate deals into one place, making it easier for consumers to shop by deal.”
