A recent blog entry from RetailNext (via iQmetrix, our Vendor Managed Inventory Service partner) presented some interesting insight and statistics into various shopping seasons and how consumers shop and what they’re influenced by. The blog’s main focus is on the back-to-school season that we’re in the midst of (valued at roughly $68 billion), and they even provided a handy infographic to easily illustrate their findings (reproduced at the conclusion of this blog). While their piece is focused on retail in totality, there are great takeaways that can help you take advantage of the waves of consumer spending.
The top finding states the back-to-school season is the “second-largest seasonal shopping period of the year in terms of consumer spending” behind the winter holidays (Christmas, Hanukkah, etc.). According to their data, consumer spending during back-to-school exceeds the four holidays ranked behind it combined! Those holidays being Mother’s Day, Valentine’s Day, Easter, and the Super Bowl. While an important cultural event in the United States, we had no idea the Super Bowl shopping season would rank so high! RetailNext indicates the back-to-school spending season starts in July and ends in September, while August tends to see a majority of spending occur. This makes sense since they indicate most consumers start purchasing “3-4 weeks prior to the first day of school,” which firmly falls into the month of August. As mentioned, some consumers purchase back-to-school-related items into September— it’s very student-like to wait until the last minute to cram.
This is great information and should help you prepare and put emphasis on the back-to-school spending season. But RetailNext went further and gave insight into purchase habits and programs/offers that compel consumers. They indicated that 73% of consumers engaged in “Webrooming,” which means they do research online only to purchase the products they want in a physical store. That data is surprising considering so many consumers engage in the process of “Showrooming,” which is the exact opposite (consumers visit a store to examine an item before purchasing online for a lower price). It isn’t clear if the Webrooming phenomenon is something consumers favor during the back-to-school season only, or if it’s a growing trend across several holiday spending seasons. What’s most interesting from our perspective is the statistic that 15% of shoppers indicated that “a full 100 percent of their purchases were influenced by coupons, sales, and promotions.” 15% of $68 billion dollars is some serious cash; $10.2 billion dollars, specifically. Again, this isn’t clear if this statistic is applicable to the back-to-school season only, but anecdotally, it certainly isn’t.
If you’re a regular reader of our blog you know the importance of preparation, and considering what coupons, sales, and promotions you’ll be offering for any season is clearly important to your bottom line. After a generation of care-free spending, consumers are far more frugal in these largely punishing economic times. Even better, it’s likely that similar tactics can be applied to slower times in between important consumer spending cycles. You like deals, we like deals, and the data is incredibly clear: so do your customers. So, at least consider giving consumers what they want, because you’ll be rewarded handsomely. That’s something you can take to the bank!
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