It’s that time of year again. And with a robust stock market and high levels of consumer confidence, studies are predicting double the increase in 2017 holiday spending over 2016. “Generally good economic news has consumers signaling a 4 percent increase in their holiday spend this year to an average of $936 per household,” said Robert Passikoff, founder and president of New York City-based research firm Brand Keys, Inc., in a recent press release.

According to the press release, Brand Keys’ annual survey shows that consumers are making decisions and plans to shop even earlier than in previous years. “Retailers have recognized shifts in the consumer shopping paradigm, and will again try to capitalize on them by kicking off Black Friday-like sales even earlier,” Passikoff said.

According to the 11,625 shoppers who participated in the 2017 Brand Keys survey, despite larger spends consumers have adopted new shopping patterns when it comes to the holidays and calendar events, particularly the winter holidays. “This is an incredibly important shift,” said Passikoff. “It means that a season that represents nearly 25 percent of the retail industry’s total sales, is spread out – conservatively speaking – over a four month-plus period even though the winter holidays have traditionally been defined as the 61 days of November and December. It may work that way on the calendar but not in successful retailers’ marketing strategies!”

A seasonal and traditional December 

Consumers have begun holiday shopping earlier and earlier and as a result, a smaller percentage of consumers (20 percent, down 5 percent year-over-year) have indicated they are shopping on Black Friday. Twenty-nine percent of respondents indicated that they will holiday shop in December, the largest specific shopping period identified by consumers in the 2017 Brand Keys survey.

“Deals notwithstanding, shopping on Black Friday and in December itself has become more of a traditional, seasonal thing families can do together,” said Passikoff. “It’s a habituated behavior that grabs consumers when Jack Frost nips at their noses and Santa Claus is coming to town, despite the fact that 71 percent of their shopping has already been completed!”

Online and offline

Virtually all consumers interviewed (98 percent) are buying online again this year. Consumers again intend to use multiple venues to shop this year:

  • discount department stores at 95 percent;
  • specialty and apparel stores at 75 percent;
  • traditional department stores at 73 percent;
  • electronics at 25 percent;
  • price clubs at 24 percent;
  • sporting goods stores at 18 percent; and
  • outlet stores at 15 percent.

Catalogues (8 percent), are down another 2 percent from last year.

What will shoppers be buying? Consumers indicated the following categories where money is going to be spent:

  • clothing and accessories (85 percent, up 5 percent from 2016);
  • personal care products/spa (55 percent, up 5 percent from 2016);
  • electronics/phones/computer (48 percent, down 2 percent from 2016);
  • kitchen/cookware (45 percent, up 3 percent from 2016); and
  • toys (30 percent, up 10 percent from 2016).

Gift cards have become as universal, with nearly everyone indicating they’ll buy at least one this year (95 percent).

Meeting expectations 

Just as in holiday seasons of the past, value is paramount for all platforms. Consumer expectations regarding outreach and convenience, as well as the shopping experience for brick-and-mortar retail, are up again. Free shipping and returns, order online-pickup-in-store or ship-to-store options will have holiday shoppers’ attention again this year.