ICSC: Black Friday weekend store visits, spending is expected to surge
Omnichannel retailers are positioned to benefit the most from Black Friday weekend.
This was according to “The ICSC Holiday Intention Forecast Survey” from the International Council of Shopping Centers (ICSC), which revealed that consumers plan to spend an average of $554.90 Thanksgiving weekend. They will dedicate $207.30 of this budget to holiday gifts. Overall, nearly half (46%) of the weekend’s shoppers plan to spend more this year than they did last year.
Omnichannel retailers could grab the largest portion of this wallet share with 93% of shoppers planning to spend with retailers that have both a physical and a digital presence. Of the shoppers planning to buy online and pick-up in store (BOPIS), 77% indicate they are likely to spend additional money at that store or adjacent stores.
These expectations echo ICSC’s recent “Halo Effect” study, which illustrated the synergy between stores and Web traffic. The study indicated that having a physical store increased web traffic an average of 37%, and, similarly, closing a store decreases web traffic to a retailer’s site.
A total of 71% of Thanksgiving weekend shoppers will go to a shopping center or mall during the weekend. Millennials – a customer segment that is long-considered the “online” generation – will lead the pack at 83%.
While 45% of shoppers plan to visit stores on Black Friday, robust spending is expected to continue throughout the holiday season. With 28% spending on that Saturday or Sunday, there will be 26% shopping on Cyber Monday.
Interestingly, 78% of respondents plan to buy toys in discount department stores like Walmart and Target – more than any other category – signaling an important role for brick-and-mortar retail in meeting that need.
Other findings include:
• 65% of shoppers will spend on holiday-related items like decorations and cards
• 87% will be hitting discount department stores, such as Target and Walmart, while 66% will spend at dollar/variety stores, and 65% will shop at department stores.
“It’s clear that having a strong physical and digital presence continues to drive sales – and Black Friday is no exception,” said Tom McGee, president and CEO of the International Council of Shopping Centers. “This year’s survey results once again show that consumers want options and will shop both in-store and online throughout the holiday season.”
No comments found
Holiday spending to climb, but shoppers want deals
Consumers are feeling generous this holiday season, but they still want the biggest bang for their buck.
This was according to “The Conference Board Holiday Spending Survey, October 2018,” which revealed that holiday shoppers plan to spend about $627 on gifts this season. This is well above last year’s estimated $560.
However, these shoppers will also be doing some bargain hunting. Not only will they be looking for sales, more than a third of shoppers said they expect – at a minimum – to purchase half their gifts at a discount.
By seeking out better deals, customers may be willing to open their wallets more often this holiday season. For example, approximately 12% of consumers plan to spend more this year on holiday gifts. Sixty-five percent plan to spend about the same as last year, and the remaining 24% said they plan to spend less.
A greater number of consumers also will be shopping online, with more than 37% of consumers planning to make at least half of their purchases online.
“Consumers are excited about the holiday season and are ready to shop,” said Lynn Franco, director of economic indicators at The Conference Board.
“Consumer confidence is at an 18-year high. Unemployment is the lowest in decades. Given the strong economy and job growth – with expectations of more in the New Year – retailers should expect strong demand this season, with the potential to be one of the best shopping seasons in years,” Franco said. “However, they will still face a tough and discriminating consumer – one who is expecting bargains and willing to wait for a deal. Retailers will need to get creative and offer numerous deals and promotions, especially given the increased competition from online merchants.”
No comments found