In and around 2010, the economic recession in the UK saw a decline in retail growth. The good news is, things in the retail industry have changed. In fact, this holiday season expenditure is expected to rise to its highest. This is according to PricewaterhouseCoopers (PwC), one of the largest professional services companies in the world. What’s more? Apparently, digital sales are also expected to rise by up to 25 percent with consumers preferring mobile devices for online shopping.
So what are some of the trends expected to attract more spending this holiday season?
Gen Z’s influence
The generation after the Millennials (Gen Z), is expected to be the biggest factor. Gen Z is mainly going to increase interactive digital content like mobile video. Unlike the millennials who like experiences, the Gen Z is a tactile group who are addicted to sugar, games and gadgets. Did you know that this category of consumers represents the largest U.K demographic at present?
Retailers are investing in Digital Channels
Many retailers are increasingly investing in digital channels. This is further accelerated by the fact that over the last year, mobile shopping rose up to 25 percent. Pointers indicate that more and more shoppers are monitoring deals, scouting digital products, and paying for tracking packages and products. There is enough reason to expect a proliferation of digital sales.
Consumers are increasingly shopping throughout the year
Lured by discounts and flurry deals, consumers are beginning to shop all year round. Last year, up to 64 percent of shoppers started their holiday shopping before the Black Friday week. A further 29 percent indicated they would have finished their shopping by the start of the Black Friday week.
There is going to be an increase in social responsibility
This holiday season, consumers are expected to give more money to charitable courses. This includes animal welfare, community development courses, health and social services, and disaster relief. Retailers are also not going to be left behind, with an estimated 75 percent willing to give contributions towards such courses. It is also worth noting that many consumers indicated that they prefer retailers that are committed to this kind of corporate social responsibility.
Retailers are improving their customer services
Retailers are willing to improve their convenience of service. Up to 60 percent of retailers say they are going to provide free shipping and returns during this holiday season. They will be giving various options for in-store and online product ordering and delivery. This is in a bid to maximize speed, their variety of service and convenience.
Consumers are expected to spend more this holiday season
PwC estimates that on average consumers are likely going to spend at least 10 percent more this season than last year. It is also predicted that shoppers whose annual household incomes are less than £38,000 are more likely going to increase their spending than any other category of consumers.
Millennial parents are going to embrace mobile devices, at least to pay for services
Millennial parents, especially those who are trying to balance between their full-time jobs and taking care of their kids are twice more than any other category of shoppers, expected to use mobile devices to make payments for products and services. They are also expected to browse the web for discount codes so they save money on their purchases using voucher sites like Coupon.com, Retailmenot.com and Wikigains.com.
Pet owners will spend money of their pets
About half of all consumers with pets are expected to spend some money on their animal friends, buying them gifts and other things. Millennials are likely going to spend an average of £58 on each gift, while other consumers will spend about £44.
Brands matter to a lot of consumers
In a survey that involved local businesses, independent retailers, established household names, and new entrants, up to 80 percent indicated that brands matter to them. Also, 75 percent of shoppers said they are planning to get their goods locally while 56 percent said they would prefer independent retailers.
College-educated Millennials’ expenditure will rise
It is expected that college-educated millennials will spend over 300 more than all other consumers this season. Interestingly, they will spend up to a third of their entire holiday budget on themselves!