Consumer Behavior

Holidays shoppers starting early, economy big concern

Photo by istock.com

October 24, 2022

More than half of consumers, 66%, are more concerned about the economy this holiday season compared to last year, and 58% intend to start shopping before November.

Those are top findings from an IBM Institute for Business Value global holiday shopping and travel report that also revealed 73% of consumers are considering sustainability when holiday shopping.

The study found 2022 shopping budgets are up 8% over 2021.

Factors, including inflation and price increases, have made economic concerns top of mind, according to a press release on the findings.

While 59% will be less concerned about COVID-19, 59% are worrying more about supply chain disruptions that could make holiday shopping harder or more expensive.

"According to the survey results, in 2022, consumers are hoping to re-embrace holiday traditions they've had to alter for the past two years," Karl Haller, partner, Consumer Center of Competency Leader, IBM Consulting, said in the release. "They're starting their shopping and travel planning earlier but also want to hedge their bets with options like free returns or cancellations. To adapt to these changes in consumer behavior, retailers will need better visibility and traceability across product inventory, fulfillment and returns. AI can help them understand, prioritize and resolve critical issues in real time."

Additional findings include:

• Nearly half of consumers surveyed will spend less if inflation continues to drive price increases. If they're forced to cut their holiday shopping budget, over 60% will cut the non-essential categories like apparel, footwear, jewelry and accessories.
• If goods are not available due to supply chain issues, 41% of respondents will spend less — but 30% will spend more if they can find substitutions easily.
• If gas prices go down, 35% of consumers surveyed will do more in-store shopping.
• Almost two in three plan to pre-order this holiday season to get their products on time with guaranteed prices.
• Nearly seven in 10 respondents will opt for brands or retailers that offer free cancellations, order changes and returns, as well as a COVID-19-safe environment this holiday season. The study findings seem to indicate these perks are often worth the price due to the continued worries around supply chain and product availability this season.
• Consistent with last year's report, sustainability remains top of mind for consumers surveyed globally. Three fourths (73%) of respondents said they are considering sustainability when shopping for the holidays. Twenty-nine percent of consumers surveyed will bundle multiple orders to help reduce carbon emissions, while 38% will avoid single-use plastics, and two in five will choose to shop nearby (42%) and buy products that are branded as being environmentally sustainable or socially responsible (41%). Notably, respondents surveyed are willing to pay an average premium of 41% for sustainable products, 34% for sustainable air travel and 37% for sustainable lodging this holiday season.

"As more consumers align their purchases with their values, retailers and brands that can provide more environmentally-friendly options could potentially earn a greater share of holiday spend," Haller said in the release.