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.
If you need support on insights, strategy or innovation connect with us at www.pearl-strategy.ca or connect with Susan Weaver at 416 908 2446
Source: Profiteno, November 30, 2023
