A study of consumers from the United States, United Kingdom, France and Germany from project44, a supply chain visibility platform, suggests that inflation and economic fears will have a significant impact on shopping decisions as the year winds down. In the study, 78% of consumers revealed that they plan to spend at least 10% less this holiday season because of rising prices.
The top spending concern for consumers this holiday season are the prices of goods being too high followed by shipping costs and out-of-stock items or low inventory.
In other holiday season study findings, the company noted,
- 85% of consumers will shop online, putting significant pressure on shippers and supply chains, with online and omnichannel brands likely to see the most traffic this holiday season.
- 56% of American shoppers plan to purchase at least half of their gifts online in this year’s holiday season versus 43% in the U.K., 29% in Germany and 25% in France.
- Shoppers dealing with present circumstances will prioritize savings over sustainability and on-time shipping.
- Most consumers would rather buy locally than ship slowly to reduce their carbon footprint, with 56% saying they would shop at local and small-owned businesses to reduce emissions. One-third said they would accept slower delivery or ship to a store for pickup to reduce their carbon footprint.
- 16% of study participants said they would pay more for a greener brand this year.
- 67% of consumers in the European Union said they normally prioritize brands with a sustainability commitment, but only 50% of U.S. consumers said they do the same.
- One-third of shoppers are not confident their gift purchases will arrive in time for the holidays, and 64% would not pay higher prices to guarantee that their purchases arrive in time.
“Shoppers are feeling the pain of inflation and looking for ways to save money while still receiving purchases on time,” said Carson Krieg, head of industry solutions and strategy at project44. “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.”