A survey by cash-back provider Rakuten reveals a disconnect exists between retail marketers and shoppers as they enter the 2024 holiday season.
In a survey of retail marketers and shoppers conducted in conjunction with the Harris Poll, 81% of consumers said they do not plan to increase their holiday spend this year.
Meanwhile, because of perceived high consumer confidence levels, many marketers are delaying their promotional spend, with 79% saying they are optimistic about reaching holiday sales objectives and 65% noting they are timing their spending for as late as November, Rakuten reported.
Rakuten indicated 38% of shoppers surveyed plan to spend the majority of their holiday budget in mid-fourth quarter, with 25% waiting until Black Friday and Cyber Week, and only 27% starting in October. Concerns about delivery delays for online purchases prompted 42% of consumers to start their shopping earlier than they might otherwise, with 32% of consumers saying they intend to do more shopping in-store, Rakuten stated.
Despite softening inflation, 46% of consumers said higher costs will have the greatest impact on their holiday shopping strategy, while only 20% of marketers believed that to be true. Some 26% of shoppers said they cannot afford to buy gifts, suggesting that they are not feeling inflation relief. Shoppers anticipate the upcoming election will impact inflation, with 57% expressing a belief that it will increase.
Retail marketers are still banking on a strong holiday season, with 98% saying they believe shoppers will remain loyal to brands, and only 2% anticipating that shoppers will trade down to lower-quality labels and products for more affordable alternatives.
However, 45% of consumers said they intend to spend less on holiday gifts and 42% said they would prioritize finding the lowest prices.
“There’s a clear disconnect between marketer perception and consumer realities, but this presents a unique opportunity for retailers to capitalize on the shortcomings of their competition,” said Julie Van Ullen, chief revenue officer at Rakuten Rewards. “As shoppers plan to spend less overall, there become fewer opportunities for retailers. This makes it evermore important for retailers to invest in strategies that set them apart throughout the entire holiday season.”
