ICSC: Physical, digital retail will converge to entice holiday shoppers

Physical stores still play a crucial role in holiday shopping.



That’s one of the major themes of the International Council of Shopping Centers’ annual holiday forecast, which emphasizes that, more than ever before, shoppers will expect an omnichannel experience this season. The report predicts 3.3% year-over-year growth sales at physical stores this holiday season (compared to 2.2% increase in 2015). Including online sales for physical retailers, ICSC predicts sales will rise 3.5%.



With holiday shoppers planning to spend an average of $683.90 this year, in-store purchases will continue to dominate, with 91% of holiday shoppers planning to spend at physical stores.



In other findings, 85% of holiday shoppers will research online before making purchases in-store. Also, 39% plan to utilize click and collect, up from 32% last year, with 83% of these shoppers making additional purchases in-store when picking up their online order.



“Throughout 2016, consumers have demonstrated a tendency to shop across both digital and physical retail,” said Tom McGee, president and CEO, ICSC. “Even shoppers who purchase online favor retailers with a physical presence and an increasing number of consumers are buying online and collecting in stores. Consumer intentions show that this digital/physical convergence will be critical for the health of the industry as we close out the year.”



According to ICSC, gift cards/certificate will dominate holiday spending (64%), followed by apparel and footwear (51%), toys and games (not including apps or video games) (46%), men’s/women’s accessories, cosmetics, fragrances (39%) and electronics (any type) (38%).



With intentions to shop at physical stores high, consumers cite the following reasons for why they favor in-store holiday spending:



• The ability to see, touch or try on merchandise (52%)

• The ability to get the item immediately (50%)

• Not wanting to pay for shipping (42%)

• Ease of returning/exchanging the item (35%)

• Convenience of one-stop shopping (31%)