![]() ![]() These insights build on the work we have undertaken since March 2020, when we began to regularly conduct consumer surveys and combine our research and analysis with third-party data on US spending to glean insights into how consumer sentiment has shifted since the beginning of the COVID-19 pandemic. The survey was in the field from October 17 to October 19, 2023, and collected responses from more than 1,000 consumers in the United States (sampled and weighted to match the general US population, ages 18 to 74). We also recommend four actions that retailers could consider to win consumer spend through the holidays. This article presents findings from McKinsey’s ConsumerWise team and our latest Consumer Pulse Survey, which outline when consumers will shop for the holidays, how much they will spend, and what matters most to them during this time. ![]() Retailers have put many of these strategies to work in past years, but in a challenging environment with high stakes, will they be enough to meet consumer expectations while also proactively managing store costs and fulfillment expenses? These purchase incentives, however, are only one part of the equation: retailers, if they haven’t already, should also invest in an improved supply chain and omnichannel experience to provide greater convenience to shoppers. Price match guarantees and widened return windows-of up to four months in some cases-are other strategies retailers are implementing. Some businesses emphasize membership and loyalty programs, which come with discounts and early access to deals. Whatever their holiday shopping strategy, retailers are finding ways to connect with their customers. Some consumers will trade down, while others will splurge. That means there are no guaranteed wins for retailers as consumers decide how much to spend through the remainder of the holiday shopping season, which can represent up to 40 percent of sales for discretionary retailers. The big question on everyone’s mind: Will consumers-whose spending habits have challenged efforts at curbing inflation-finally pull back?Īlthough shoppers are feeling better than they were this time last year, general consumer sentiment about the US economy is one of uncertainty. After a year of modest sales growth, retailers face a critical holiday sales season. ![]()
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