Consumer Behavior

Consumers getting price sensitive as holiday season nears

Photo by istock.com

October 12, 2022

Consumers will prioritize savings and on-time shipping this holiday season and 78% plan to spend at least 10% less due to inflation compared to last year.

Those are top findings from a project44 Peak survey that polled 1,500 consumers across the U.S., U.K., France and Germany.

More than two-thirds, 85%, of shopping will be online, according to a press release on the findings.

"Shoppers are feeling the pain of inflation and looking for ways to save money while still receiving purchases on time," Carson Krieg, head of industry solutions and strategy at project44, said in the release. "To win over shoppers, brands need to be armed with data and have a strong supply chain strategy prepared to address consumer concerns. Many retailers still have not developed and deployed a holiday shipping plan of action, and these brands are risking falling behind amid peak season."

Additional findings include:

• The No. 1 concern for consumers is the prices of goods being too high, followed by shipping costs and out of stock items or low inventory.
• 78% of consumers are willing to compromise on the gifts they purchase for a better deal.
• 56% of American shoppers plan to purchase at least half of their gifts online this year (compared to 43% in the U.K., 29% in Germany and 25% in France).
• Less than half (48%) intend to do most of their shopping in stores.
• Only one-third would elect for slower delivery or ship to a store for pickup to reduce their carbon footprint.
• Only 16% of consumers say they'd pay more for a "greener" brand this year.