Dive Brief:
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Several economic factors will lead to a holiday spending season that closely resembles last year’s, according to a report by consulting firm PricewaterhouseCoopers’ U.S. Retail & Consumer Practice and PwC affiliate Strategy&.
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The report, which is in sharp contrast to the more optimistic holiday shopping outlook released by the National Retail Federation, found that 72% of shoppers say the economy is “the same or worse” than last year, and 84% plan to spend the same or less than last year. Spending levels this holiday will slightly decline as result, the report concludes.
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64% of survey respondents cited limited disposable income, 61% cited cost of living increases, and 37% cited insufficient pay as reasons they’ll be cautious this year. More than 2,200 U.S. shoppers were surveyed for the report, “2014 Holiday Outlook: Top trends, consumer behaviors and implications for retailers.”
Dive Insight:
This report finds a significantly less optimistic consumer mood ahead of the holidays compared to the forecast reported by the National Retail Federation, which anticipates a 4% rise in consumer spending compared to last year. The NRF report did note that listless wages and this year’s inconsistent consumer confidence reports mean that retailers will likely have to maintain a promotion-friendly environment to lure shoppers.
Holiday retail strategies to remember, according to PwC and Strategy& include: Differentiating the in-store experience, remembering that “deals are critical for driving traffic,” and focusing more attention on the most loyal shoppers.
