The higher price of goods is the #1 concern for shoppers this holiday season, followed by shipping costs
project44, the leading supply chain visibility platform, released the results of its 2022 Peak Season Consumer Survey, which gauged consumer sentiment heading into the holiday shopping season. Nearly 1,500 consumers from the US, UK, France and Germany participated, sharing their views on spending, shipping, sustainability and more. The data suggests that 85% of shopping will take place online, putting significant pressure on shippers and supply chains. However, consumers will prioritize savings over sustainability and on-time shipping.
“Shoppers are feeling the pain of inflation and looking for ways to save money while still receiving purchases on time,” said Carson Krieg, Head of Industry Solutions + Strategy at project44. “To win over shoppers, brands need to be armed with data and have a strong supply chain strategy prepared to address consumer concerns. Many retailers still have not developed and deployed a holiday shipping plan of action, and these brands are risking falling behind amid peak season.”
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Key takeaways from the project44 2022 Peak Season Consumer Survey include the following:
- 78% of consumers plan to spend at least 10% less this holiday season due to inflation.
- The #1 concern for consumers is the prices of goods being too high, followed by shipping costs and out of stock items or low inventory.
- 78% of consumers are willing to compromise on the gifts they purchase for a better deal.
- 56% of American shoppers plan to purchase at least half of their gifts online this year (compared to 43% in the UK, 29% in Germany and 25% in France).
- One-fifth of consumers plan to do more than 75% of their holiday shopping online this year.
- Less than half (48%) intend to do most of their shopping in stores.
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- 56% of consumers would shop at local and small-owned businesses to reduce emissions.
- But only one-third would elect for slower delivery or ship to a store for pickup to reduce their carbon footprint.
- Only 16% of consumers say they’d pay more for a “greener” brand this year.
- One-third of consumers are not confident their gift purchases will arrive in time for the holidays.
- The glass half full view: two-thirds of consumers are confident their gifts will arrive on time.
- 64% of shoppers would not pay higher prices to guarantee that their purchases arrive in time for the holidays.
Shopping plans were fairly consistent across the US, UK, France, and Germany, but a few differences are worth noting:
- While 67% of EU consumers say they prioritize brands with a commitment to sustainability, only 50% of US consumers claim to do the same.
- French respondents had the most faith in shippers, with 94% confident that their gift purchases will arrive in time for the holidays.
- At 53%, UK consumers are the most willing to pay higher prices to guarantee that their purchases arrive in time for the holidays.
- 49% of German respondents said they are willing to ship to a store for pickup to reduce their carbon footprint; no other surveyed nation comes close.