This year’s peak trading season has been full of predictions and questions – what items will consumers spend on, what will they save on, and will they choose to shop online or in-store?
Here we explore the top insights that will shape the final rush of holiday spending and explain why a focus customer experience is so vital this peak trading season.
Online shopping is king
The year started with retailers clamoring to tempt customers back in-store, with exciting developments like checkout-free stores and ultra-fast delivery.
However, online shopping continues to overshadow physical stores with Adobe predicting 2.5% growth in online sales November 1-December 31.
Sales are up, but gift spending is down
Some of the statistics are promising for retailers hungry for a successful peak trading season after the challenging years that came before. According to a report by Insider Intelligence, US holiday retail sales are expected to reach $1.3 trillion in 2022, a 3.3% increase over 2021. Cyber Week 2022 even broke records, with $35.3 million in revenue.
These statistics could misrepresent the bigger picture, however. According to Forbes, 58% of US consumers plan to cut back on non-food spending during the holiday season which could represent a $30 billion decrease in gift spending. The businesses most likely to be hit by this are those selling clothing and footwear, with 25% of people expected to resist splashing out on these items.
So, what are people spending on, and how can retailers attract them to their offering?
Customers place value on experiences
A major trend began two years ago - the preference among consumers for experiences over products, and the importance placed on customer experience. The experience economy continues to thrive and cannot be ignored.
It’s important for brands to remember that all the deals and offers of this season can be overwhelming, especially as people in many countries have faced rising costs for bills and essentials due to pressure on the world economy. The focus is less likely to be on high-ticket luxury items, and more about great experiences that make customers’ lives easier.
Brands that can use technology to create immersive digital experiences that minimise the stress of organising festivities amid the current economic downturn are those that will come out on top.
About PXP Financial
Working with the right payments partner for your business means a frictionless experience, both for you and your customers. At PXP Financial we work hand-in-glove with our customers, providing enhanced support throughout peak trading season. Our single unified payments platform allows you to accept payments online, on mobile and at the point of sale, with 200+ alternative payment methods and financial services on offer. If you’re interested in improving your customers’ digital experience, please contact us at: contact@pxpfinancial.com
