A new Deloitte report found that 71% of retailers surveyed project that this year will have a higher discounting spread this holiday season than in 2022, which is excellent news for consumers who are cutting costs and spending.
“Retailers tell us discounting and promotional activity will be the key to enticing customers,” the Deloitte report said.
Deloitte conducted interviews with 35-40 large businesses and paired findings with consumer data of over 20,000 shoppers worldwide for the report.
This year, the report predicts retailers would devote resources to online shopping, click-and-collect and delivery options, and enhance in-store shopping.
Discounts should lead to products being purchased, but the retailers voiced their worry that margins would not remain stable. Of those surveyed, 52% say a margin decline is on the horizon for in-store shopping in 2023.Based on recent retail sales figures, retailers here in Australia will face each other to win the consumer’s purchase during the holiday season, especially with buyers decreasing their shopping in categories like home goods and fashion due to competing costs like surging mortgages.
Aussies shoppers want to get a jump on holiday shopping, as found in a recent Amazon survey, where 71% of 1000 Australian consumers said they are either already shopping or will be soon, with only one in five planning to keep holiday shopping until December.
To help capture early spending, Amazon confirmed it will be sharing early holiday deals with its Prime members for “Prime Big Deal Day” on October 10 and 11.
Early holiday shopping before the actual holiday season has been gaining popularity for years, but banking giant NAB said that their data showed “a subtle but important shift towards earlier shopping in 2022 as Australians seized on November sales”.
According to the Sydney Herald, several national retailers have stayed cautiously optimistic, with a Myer department store manager saying the company was in a good position for December.
General manager of retail at cosmetics retailer Lush Australia and New Zealand, Brittany Gian, said: “We see Christmas as being an event that consumers prioritise, and while cost-of-living pressures are necessitating cutbacks in other areas, consumers will try and preserve their Christmas spend to celebrate their loved ones after a tough year.”
With households feeling the inflation pinch, discounts and deals will be more important than ever this season, and as Deloitte’s survey uncovered, most retailers are more than prepared.
