Two reports recently surfaced giving pet businesses a bit of insight into what they can expect for the upcoming holiday season.
According to the National Retail Federation, 'faced with continued economic uncertainty and used to doing more with less, consumers will take a conservative approach to spending this holiday season.'
The survey, conducted by Prosper Insights and Analytics, also indicates average shoppers will spend approximately two percent less than they spent last year. When asked if the overall state of the economy would affect their spending, 'more than half (51.0%) of consumers said the economy would in some way impact how they spend this holiday season. Specifically, 79.5 percent plan to spend less overall, looking to cut corners and tighten budgets where they can.'
To make more room in their budgets this year, consumers plan to cut back on “self-gifting,” or treating themselves to something, according to the report. 'Shoppers’ budget will go towards gifts for family members, with the average person planning to spend $415.50 on mom, dad, and other loved ones, down slightly from the actual $423.36 they spent last year. Additionally, people will spend $72.14 on friends, $23.59 on co-workers and $25.63 on others, such as pets and community members,' the report indicated.
Consistent with results seen the past 11 years, the report also shares information about when consumers will start their shopping:
- 41.2 percent of Americans say they will begin holiday shopping before Halloween.
- 12.4 percent say they started before September,
- 8.2 percent began in September.
- 20.6 percent will begin in October.
- More than one-third (38.8%) will begin in November.
- 16.0 percent plan to start shopping in the first two weeks of December.
- Almost four percent (3.9%) will wait until last minute and shop in the last two weeks of the month.
Additionally, the report indicates more than half (51.5%) will shop online.
On the other hand, a recent report from American Express Spending and Saving Tracker (which tracks higher income levels) indicates, 'with a late Thanksgiving and the shortest holiday shopping season in years, consumers say they’re starting their holiday shopping sooner and spending more this year.'
The report goes on to say, 'consumers say they will expect to spend $1,260, up $400 from last year. Aiming to find the best deals, more than a quarter of Americans say they’ve already started holiday shopping and will finish before December 1st (27% vs. 24% in 2012), while others expect to finish a week before Christmas (37% vs. 33% in 2012).'
The AMEX Spending and Saving Tracker indicates, 'for the first time, Cyber Monday is beating out Black Friday as the most popular shopping day, as more consumers (55% vs. 39% in 2012) say they’ll shop the virtual blowout sales instead of fighting the crowds the day after Thanksgiving (52% vs. 45% in 2012)./
The report also shares many will go social in their savings this year 'as 66% plan to take advantage of offers via social media sites, up from 60% last year.' And when looking for discounts consumers look toward social media as well as, 'consumers “like” Facebook as the most popular social resource (49% vs. 46% in 2012), followed by Groupon (43%, up significantly from 27% last year), Pinterest (20%, up from 10%) and Twitter (20%, up from 15%).'
It's not too late to quickly reformulate your holiday marketing plan of attack and strategy to take full advantage of the upcoming holiday season and maximize sales for your pet business. Feel free to email us for a 30 minute free consultation to explore ideas of how we can help you make the most of the holidays.
Sources: American Express Spending and Saving Tracker and National Retail Federation. Photo courtesy skirtpr.