Pearl Strategy and Innovation Design recently reviewed this research and here is our take.
Holiday Shopping is now here.
Overall
- While inflation may be easing up, shoppers are not feeling out of the woods quite yet. According to research firm Numerator, half of consumers expect inflation
or a potential economic slowdown to impact their 2023 holiday celebrations and shopping. To save money, two-thirds of shoppers say they’ll buy holiday items on sale, and half will buy fewer items overall. - The pressure to squeeze every dollar makes it more likely consumers will throw loyalty out the window and buy from whichever retailer has the best prices. A 2023 study by PYMNTs found that 47% of grocery shoppers have already switched to different retailers due to lower prices.
Which retailers are best positioned to deliver deals/value to the consumer?
- Walmart
- Amazon
- Target
- Home Depot
- Best Buy
- Wayfair
While Amazon gets the most recognition for the lowest price, 7 years in a row. There is only a 4% gap between Amazon and Walmart on all major categories, like appliances and electronics, tools and home improvements.
During a three month period of comparing online prices daily, Walmart and Amazon have identical prices across identical products, 70% of the time, highlighting the fierce rivalry between these two giants.
With 82% of U.S. consumers price-comparing across retailers before buying, it’s vital for retailers to not only have the largest average price discounts but also “appear” to be the most affordable option whenever a consumer decides to shop. The more frequently a consumer finds a retailer offering lower prices than others, the more they’ll perceive that retailer as consistently cheaper, making it their go-to choice.
Implications: Align the key retailers to your sales strategy, product or service to deliver to your consumer and customer needs.
Want more insights, strategy and innovation? connect with us at pearl-strategy.ca or John at johnchan@pearl-strategy.ca
Source: Profiteno, November 30, 2023
