Consumer Behavior
PwC leader talks robust holiday season spend, consumer trends
The PwC annual “Holiday Outlook” report reveals women are spending more than ever before, most consumers want a deal and Gen Z is busy shopping in the physical store.
December 11, 2023 by Judy Mottl — Editor, RetailCustomerExperience.com & DigitalSignageToday.com
If data from the 2023 PwC Holiday Outlook report hits the mark the 2023 holiday shopping season will be one of big spend with most consumers seeking a deal and the Gen Z holiday consumer browsing the physical retail store for gifts.
There's also data that women are spending more than ever before — boosting spend by 11% over 2022 yet spending far less than men ($1,292 vs. $1,711). And not only will Gen Z consumers be in the malls they're predicted to increase their overall spending more than any other generational shopper demographic — an increase of 15% or more compared to last year.
For the study PwC polled 4,000 consumers where and when they plan to shop and travel — as well as what drives their purchasing decisions. The survey was fielded in July 2023.
Here are some additional highlights from the data:
- Spending is up across all holiday categories: $786 on gifts (+4% vs. last year); $510 on travel (+12% vs. last year); $234 on entertainment (+4% vs. last year).
- Nearly 40% of consumers will spend more overall than they did last year.
- Nearly 80% will spend the same as or more than they did last year.
- Millennials will spend the most this year ($1,918), Gen X is second ($1,782), followed by Gen Z ($1,275) and Boomers ($1,148).
- More than 77% of consumers are on the hunt for deals this holiday season, in the effort to counteract rising prices.
To gain deeper insight on what the report reveals in terms of holiday shopping trends and holiday shopper behavior RetailCustomerExperience reached out to PwC US Retail Leader Kelly Pedersen in an email interview.
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PwC US Retail Leader Kelly Pedersen. |
Q. What was/is the biggest surprise to you with regards to the holiday outlook data results. Any trend that wasn't expected?
A. We're seeing a healthy increase in consumer spending with overall holiday spending up 7% compared to a year ago. Particular categories such as gifts and entertainment — which were the most affected by inflation — are up about 4%. Our data also shows consumers aren't holding back when it comes to travel, which is up 12%. There are some additional interesting findings from the report when it comes to demographic data. Women are spending significantly more than they did previously – up 11% from last year. We're also seeing a younger generation of shoppers with a willingness to spend more this holiday season. Gen Z is seeing the biggest increase in spending this year at +15%. Millennials will spend the most this year ($1,918) while Baby Boomers plan to spend the least ($1,148), 4% less this year than they did in 2022. Overall, despite economic uncertainty and rising inflation, the data is trending positively for the retail sector.
Q. What is driving the consumer love for malls this holiday season — after years of hearing malls are dead?
A. Consumers are looking for convenience — whether it's in-store or online. Younger consumers, specifically Gen Z, are showing interest in in-person shopping and allowing retailers to engage, while the majority of other consumers are primarily shopping online. However, whether it's in-store or online, brands and retailers understand the importance of the customer experience and are providing a multifaceted experience for shoppers. Consumers are also looking for shopping experiences that will make up for time lost during the pandemic. Many brands are incorporating new tech to make the in-store experience more attractive and keep customers coming back — and attract new ones.
Q. Is the hunt for the deal stronger or weaker this year than in past years, and what is driving that?
A. Consumers are on the hunt for holiday deals — 77% to be exact — compared to 74% of consumers in 2022. Our data shows that consumers are shopping earlier and earlier in the year to snag holiday discounts, and retailers are often having conversations around holiday promotional strategies and inventory as early as summertime to prepare. Shoppers are also getting out early to counteract rising prices, as everyday retail prices are up. Inflation continues to plague some of the primary categories such as food and fuel, and cost-conscious shoppers are looking for ways to save money and allocate dollars for experiences. We expect this trend to continue throughout the entire holiday season.
Q. What is your expectation of this year's holiday season and any projection of online versus physical store activity?
A. We expect that during the holiday season, the competition for consumer wallets will increase across the board as brands look to sway shoppers. We have seen the continued trend of people returning to stores and most of the retailers we work with expect to see this trend to continue in terms of store traffic.
About Judy Mottl
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