making spirits bright deloitte’s 2014 holiday shopping … · making spirits bright deloitte’s...

Making spirits brightDeloitte’s 2014 holiday shopping survey

October 2014

1 Copyright © 2014 Deloitte Development LLC. All rights reserved.

2014 holiday survey themes

Economic outlook and spending

Holiday shopping:how, what, where and when

Mobile device and social media influence

In-store: advantages, barriers and data security

• Continued rise in confidence in 2014; fewer believe we are still in a recession.

• Consumers predicting they will increase their total holiday spending by 13%; gifts alone will rise by 9%.

• For the first time in 8 years, a measurable increase in the actual number of gifts (from 12.9 to 13.4).

• The top two gifts remain clothing and gift cards.

• Most popular locations will be the Internet and discount/value dept. stores – equally noted.

• Over 4 in 10 will do the majority of shopping December or later (and 16% after Christmas).

• Two-thirds will specifically look for free shipping.

• 72% of smartphone owners and 69% of tablet owners will use their devices to help them shop this holiday season.

• Smartphones will be used more for finding store locations and price checks; tablets more to shop/browse.

• Almost half (45%) will use social media to assist in shopping.

• Barriers to store trips are long lines, traffic and less merchandise on hand.

• In fact, 28% will visit mallsless this year, mainly due to crowds and high prices.

• Data security is a concern for 76%, yet 56% will continue to shop a retailer that has experienced a data breach.

• 68% will shop ‘local’, to support the local economy and find unique gifts.

Economic outlook and spending


Consumers’ plans to spend “more” trends higher

82%

66% 64%67%

71%68%

71%

59%

41%

51%

62%59%

63%

71% 69%

18%

34%36%

33%29%

32%29%

41%

59%

49%

38%42%

37%

29% 31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Spend more/same Spend less

Recession

Recession

8% 11% 10% 13% 13% 15%

2009 2010 2011 2012 2013 2014

Spend more

“How will your total holiday spending compare with last year's holiday season?”


Optimism in the economy is on the rise

3%

49%

11%

37%

4%

54%

10%

32%

8%

53%

11%

29%

Healthy Slowly recovering froma recession

Heading back intorecession

Still in recession; therehas been no recovery

2012 2013 2014

“Do you believe the U.S. economy currently is ...”


Confidence is resulting in higher expected spending

2013 2014 % change

Gifts $421 $458 +9%

Socializing away from home $270 $310 +15%

Entertaining at home $159 $194 +22%

Non-gift clothing for family or yourself $136 $144 +6%

Home/holiday furnishings $81 $93 +15%

Any other holiday-related spendingnot listed above $87 $100 +15%

Total $1,154 $1,299 +13%

“How much do you expect you will spend during the upcoming year-end holiday season on each of the following items?”

42% of respondents have a specific budget in mind they plan on spending this holiday season


Omni-channel shoppers (mobile, store, Internet) expect to spend 66% more than store-only shoppers on gifts

Consumers’ expectations for holiday spending on:

Omni-channel(shop mobile, store, Internet combined)

Shop stores only

Gifts $592 $357

Total* $1,768 $836

*Total includes the following categories: “gifts,” “socializing away from home,” “entertaining at home,” “non-gift clothing for family or yourself,” “home/holiday furnishings,” and “any other holiday-related spending not listed.”

Smartphone owners will spend 27% more on gifts this holiday season than non-smartphone owners and those who will not use a

smartphone to assist in holiday shopping (no change vs. 2013)

+6% vs. 2013

+8% vs. 2013


Total gifts given expected to slightly increase

22.023.1

21.5

18.216.8

14.712.8 12.9 13.4

0

5

10

15

20

25

2006 2007 2008 2009 2010 2011 2012 2013 2014

“In total, what is the number of gifts, including gift certificates/cards that you expect to buy this holiday season?”

$159 is average spend on gift cards this holiday season (-$5 vs. 2013)

43% will purchase gift cards (no change vs. 2013, but down from a high of 69% in 2007)

Holiday shopping:how, what, where and when


Clothing and gift cards remain the top gifts consumers expect to purchase

“Which of the following types of gifts do you plan to buy this holiday season?”

45%

43%

31%

29%

28%

27%

21%

20%

19%

15%

Clothing

Gift cards or gift certificates

Books

Games, Toys, Dolls, etc.

Food/Liquor

Money (Cash or check)

CDs or DVDs or Blu Rays for movies ormusic

Jewelry

Cosmetics/fragrances/health & beautyaids

Games - Computer/video only

Electronics (NET)*

33%

*Electronics category is comprised of home/personal/car electronics, computers and tablets, game consoles and video games

Gift cards (37%) and cash (35%) rank No. 1 and 2 as the gifts respondents would like to receive

Top 10 gifts consumers plan on buying


Top venues respondents expect to shop

45%

44%

30%

22%

22%

22%

21%

21%

17%

16%

15%

15%

15%

14%

14%

Internet (including auction sites)

Discount/Value department stores

Traditional department stores

Toy stores

Off-price stores

Warehouse membership clubs

Outlet stores/centers

Electronics/Office supply/Computer stores

Restaurants/fast food establishments

Home improvement stores

Sporting goods stores

Specialty clothing stores

Drug stores

Low-price dollar stores

Supermarkets

*Among those who expect to shop at venues

4.6 — average number of venues consumers expect to shop this year (4.5 in 2013)*2.1— average number of loyalty programs consumers use

47% in 2013

44% in 2013

“At which of the following retail sources will you likely shop for holiday gifts?”

Responses under 14% not shown


Over half (52%) of holiday spending is planned for in-store and 40% is expected to be online

"What percentage of your total holiday budget do you expect to spend ...?”

(Among total)

52%

33%

7% 8%

In-store Online via desktop / laptop Online via mobile / tabletdevice

Other

40% will be spent online


Consumers seeking convenience and lower costs

“In general, what retail offerings will you take advantage of when spending this holiday season?”

68%

52%

45%

35%

34%

16%

Free shipping

Free returns

Price matching

Extended holiday hours(open early/close late)

Order online/pick up in-store

Free layaway

74% of respondents will be influenced by coupons/promotional offers (unchanged vs. 2013)


5% 5%

15%9%

4%

18%

38%

5%

Have alreadystarted

October Early November Black Friday Cyber Monday Late November December January

43% will do the majority of their holiday shopping in December or later, an increase versus 2013

25% 31%43%

Early Late November December orLater

-5 vs. 2013 +6 vs. 2013

“Which one of these days or months do you expect to do the majority of your holiday shopping this year?"

16% -- Percent of householdsplanning to shop after ChristmasDay, December 25th (13% in 2013)


Showrooming vs. webrooming this holiday season

Showrooming

… first go to a store to look for an item, then search online for the best price, and then

purchase online

49%

Webrooming

… first look at items online, then go to a store to see the item, then make

purchase at store

68%

Percentages combine those respondents who selected answer choices “Very likely” and “Somewhat likely”

“How likely will you be this holiday season to … ”

Consumer technologies, digital influence and social media


Smartphone and tablet ownership is rising

50%

61%67%

Own smartphone

2012 2013 2014

+ 17 vs. 2012+ 6 vs. 2013

38%

50%

Own tablet

2013 2014

+ 12 vs. 2013

41% are concerned about their privacy as a result of retailers accessing information about them through their smartphone


Smartphone owners are more likely to use their device to get store locations and compare prices

“In which of the following ways, if any, do you plan to use your smartphone to assist you in your holiday shopping?”

(Among the 72% who will use a smartphone for holiday shopping)


58%

52%

48%

47%

44%

41%

41%

36%

35%

32%

31%

Get store locations

Check/compare prices

Shop/browse online

Get product information

Read reviews

Check product availability in a store or website

Get/use discounts, coupons, sales information

Access social networks

Make a purchase online

Get text messages or exclusive deals fromretailers

Scan product barcodes to find more productinformation

+3 vs. 2013

+7 vs. 2013

+4 vs. 2013

+8 vs. 2013

+5 vs. 2013


Tablet owners are more likely to use their tablets for shopping/browsing and making a purchase

“In which of the following ways, if any, do you plan to use your tablet to assist you in your holiday shopping?”

(Among the 69% who will use a tablet for holiday shopping)


65%

57%

57%

56%

54%

46%

39%

36%

35%

Shop/browse online

Make a purchase online

Get product information

Read reviews

Check/compare prices

Check product availability in a store orwebsite

Get store locations

Access social networks

Get/use discounts, coupons, salesinformation

+6 vs. 2013

+5 vs. 2013

+5 vs. 2013


Digital devices are significantly influencing the shopping journey this holiday season

*Digital devices are defined in the survey as meaning laptops, desktops, smartphones and tablets

Digital devices* will influence 50 percent, or $345 billion, of in-store retail sales this holiday season

Tablet Smartphone Desktop Laptop


45% of respondents are using social media to assist in holiday shopping

Of those planning to use social media for holiday shopping: Why?

72% of all respondents use social media sites (blogs, discussion groups, or social networks)

Activity Percentage

Get gift ideas 47%

Find discounts, coupons, sale information 45%

Read reviews, "likes," or recommendations for products/stores 41%

Browse products 40%

Check with family/friends on gifts they want 32%

Post comments or share links about stores, sales, products 21%

In-store shopping:advantages, barriers and data security


Long lines are the biggest deterrent to shopping in stores this holiday season

“What, if anything, might prevent you from shopping in-store this holiday season?”

Top 10 reasons

40%

26%

25%

24%

19%

16%

16%

13%

10%

6%

5%

Long lines

Too much traffic

Doesn't carry merchandise I want

Slow checkout

Too far away

Lack of parking

Items/sizes often out of stock

Gas prices

Store hours inconvenient

Limited number of store associates

Store associates knowledge/ability to assist


More than half (55%) of respondents are shopping at malls* this holiday season

Nearly 3 in 10 (28%) respondents expect to shop at malls less this year compared to 2013

Reasons for shopping less at malls:

*Malls are defined as classic indoor or outdoor shopping establishments that have large anchor stores at the end

49%

42%

36%

26%

23%

17%

17%

6%

They are too crowded

I can find better prices elsewhere

Don't have to deal with traffic

It's faster to purchase elsewhere

Lack of parking / Hard to park

Malls usually don't have what I am looking for

Too far away

They feel old-fashioned or outdated


Personal data protection is a concern among respondents shopping online and in-store

Percent who agree with the following …

(Among total)

I am concerned about the protection of my personal data when shopping online 55%

I am more concerned about the protection of my personal data when shopping online than one year ago 51%

I am concerned about the protection of my personal data when shopping in the physical store 42%

I am concerned about my privacy as a result of retailers accessing information about me through my smartphone 41%

I will use a different form of payment when shopping as a result of a data breach 27%

76% of all respondents are concerned about retailers that have experienced a data breach


The majority of respondents are not dissuaded from shopping at retailers that have experienced a breach

“I am more likely to shop at a retailer who provides me education surrounding the

security of my personal data”

56% 36%“I am concerned about retailers that have

experienced a data breach but will still continue to shop at them this holiday season”


The sales associate can still make a difference

“During the holiday season, I am more likely to complete an in-store purchase from a retailer that offers ...”

48%

24%

23%

21%

17%

17%

Knowledgeable store associates

Self-service/mobile checkout

Barcode scanners to confirm product prices andfeatures

Personalized coupons/offers through mysmartphone

Personalized coupons/offers through socialnetworking sites

WiFi access for comparison shopping

33% feel store associates can provide customers a better shopping experience when equipped with the latest mobile technologies


Respondents prefer flexible return policies

“When holiday shopping, which of these return policies do you find most desirable?”

Most desirable return policies

25%

23%

18%

18%

Can return item to any store, regardless ofpurchase location

Has refund options other than store credit

No receipt required

Allows returns in January for items purchasedin October through December


More plan to use self-help technology, the most popular being “price checkers” and “self-checkout”

“Which of the following self-help technologies, if any, do you plan on using during your in-store holiday shopping this year?”

59%

56%

20%

16%

16%

11%

11%

11%

11%

Price checker

Self-checkout payment lanes

Retailer's mobile app

Mobile payment (e.g., paying via a phone,tablet or laptop)

Information kiosks (e.g., access to the retailer'swebsite)

Handheld product scanner

Video screens demonstrating products

Electronic shelf labeling

Digital signage

+ 5 vs. 2013Will use self-help technologies: 63%


If a product is not available in-store, 51% will still try to buy from that same store somehow

“If a product wasn’t available in the store, which would you most likely do first?”

29%

22%

20%

16%

6%

4%

4%

Go to another location of the same store (samechain/name) or ask a store associate if another location

has the item

Go online to the same store's website

Go to another store (different chain/name)

Go online to another website (search engines, pricecomparison sites)

Go online to another store's website

Would not continue shopping for the product

Would not shop at a store in-person

51%Store Loyalty

42%No Store Loyalty

47% in 2013

45% in 2013

Gender

Male Female

Store Loyalty 45 56


If a product is not available on a store’s website, the majority will look at a different store or website

“If the product wasn’t available on a store’s website, which would you most likely do first?”

34%

29%

14%

11%

6%

5%

Go online to another store's website

Go online to another website (search engines, pricecomparison sites)

Go to same store in-person (same chain/name)

Go to another store in-person (different chain/name)

Would not shop online

Would not continue shopping for the product

74%Go elsewhere


More than two-thirds (68%) of respondents will shop local* this holiday season

“For what reasons will you be shopping at local retail stores (including small businesses and boutiques) this holiday season instead of somewhere else?”

(Among the 68% shopping local)

*Local retail stores are defined as small businesses, independent retailers, or boutique shops which are not part of national chains.

On average, respondents expect to spend 35% of their holiday budget on local stores

62%

53%

43%

38%

30%

30%

25%

18%

18%

To support the local economy

To find one-of-a-kind gifts

It is more convenient

Excellent customer service

It is critical to the overall health of the U.S.economy

Greater loyalty to the local retail store

Special deals or offers from these localretailers

Free services (i.e., gift wrapping)

Personal relationship with store owner


66% are looking to buy items “on sale” this holiday season and 29% consider shopping a social activity

29%

43%

66%

35% Often purchase online vs. in-store when getting a sales tax advantage online (or when the sales tax charge is cheaper)

Plan to buy items “on sale” this holiday season

Shopping for Themselves and

Others

Going Online for Sales Tax Breaks

47% Plan to use store coupons this holiday season

Seeking Value and Discounts

Claim to also buy gifts for themselves when shopping for others40% in 2013

Prefer shopping with others for holiday gifts, rather than shopping alone, to make it more of a social activity27% in 2013


About the survey

The survey was commissioned by Deloitte and‏conducted online by an independent research company between September 13–24, 2014. It polled a national sample of 5,033 consumers and has a margin of error for the entire sample of plus or minus one percentage point.

As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2014 Deloitte Development LLC. All rights reserved.36 USC 220506Member of Deloitte Touche Tohmatsu Limited

This presentation contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this presentation, rendering business, financial, investment, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this presentation.

http://www.deloitte.com/us/about

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