Some 36% of consumers said they spent more this holiday shopping season and more than half reported making an Internet purchase, with four in 10 saying that selection and price led them to buy from a store other than where they normally shop, according to a new survey by KPMG LLP, the audit, tax and advisory firm.
About 39% of those surveyed said they spent the same as last year, and only 26% said they spent less to buy holiday presents. Consumers said the greatest motivators for purchases were price (32%), selection (27%) and convenience (22%), according to the KPMG survey among 840 random households from Dec. 10 to Dec. 21.
“Consumers voted with their feet. They buy what they want when it's offered at a fair price and close to home,” said John Rittenhouse, national partner in charge KPMG's Operations Risk Management practice. “Four in ten consumers spent more in a different store this year than they had in the past, with the 18-to-34 age group most likely to make such a change, and half of those who shopped in a different store said selection was the primary motivator for the change.
“This also suggests that retailers may be better off targeting customers within a few-mile radius of their store locations rather than broadcasting a wider marketing net,” said Rittenhouse, adding, “Households with incomes under $49,000 and heads of households under 44 — largely those groups whom you would expect to be undergoing life changes such as marriage, children, rising income, or possibly a new home — were the most likely to report spending more this season.
“Of particular interest was that the respondents were less influenced by customer service and or the physical store facility. Traditionally, retailers invest heavily in these areas to differentiate themselves,” Rittenhouse said.
The study also found:
- About 66% of heads of households age 18-24 said they spent more, and 43% of heads of households age 25-34 said they did.
- Some 47% of households with median incomes below $30,000 said they spent more, as did 38% of households with median incomes from $30,000-$49,000.
- As many as 29% reported having more money to spend, with 42% of the 18-to-24 age group saying they had more money to work with this holiday season, and 34% of the age group 25-34 saying there was more money for spending.
- Only 2% of those surveyed said a store's staff influenced their choice of where to shop.
“Particularly interesting is that Internet shopping included all age groups up to 65, with 53% of consumers making Internet purchases,” said Rittenhouse. “The Internet continued to attract the most desirable customer, as the higher the income, the more the likelihood to buy on the Internet. For instance, people with incomes over $75,000 were twice as likely to use the Internet compared with people with incomes under $30,000.”