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Dive Brief:
- The percentage of consumers shopping for holiday gifts with small and local businesses as much as possible has grown from 10% a year ago to 20% this year, according to a Jungle Scout survey.
- For large online retailers, Amazon ranks first as the most popular at 67%, followed by Walmart (36%), Target (14%), eBay (13%) and Etsy (11%). Among the top in-store holiday shopping destinations are Walmart (55%); Target (22%); Kohl’s (14%); specialty, independent, boutique and local retailers (12%); and Costco (9%), per the report of 1,000 U.S. consumers ages 18 to over 75.
- Eighty-five percent of consumers report that their spending has been impacted by inflation in Q4 of this year. While 89% of Gen X shoppers said inflation has impacted their budgets, 87% of millennials, 84% of baby boomers and 74% of Gen Z consumers said the same.
Dive Insight:
More consumers are interested in shopping with small and local businesses for gifts, surpassing interest in some major retailers, according to Jungle Scout’s report. Though specialty, local, independent and boutique retailers ranked 4th among the most popular in-store destinations, they came before Costco, Walgreens, Best Buy, Sam’s Club, Macy’s and Home Depot, which took the fifth through tenth spots.
Other consumer research has also noted the rising popularity of local and small businesses. The total spending of U.S. consumers who shopped at independent retailers and restaurants on Small Business Saturday this year reached an estimated $17 billion. The American Express 2023 Saturday Consumer Insights survey additionally found that more than half (53%) of respondents reported shopping online at small businesses on Small Business Saturday, a greater share than the 34% who shopped online at large retailers that day.
Another recent survey from YouGov and Bankrate found that 72% of consumers said they plan to shop with small businesses online or in person over the holidays, up from 65% in 2022.
Jungle Scout’s report adds to previous research indicating that inflation is weighing on consumers’ budgets. Though only 19% of consumers said they increased spending in the fourth quarter, 45% said they spent the same amount compared to the previous quarter, and the remaining consumers said they have decreased their budget. Looking ahead to 2024, 73% of consumers said they plan to re-evaluate their spending and budget next year.
via https://www.aiupnow.com
Tatiana Walk-Morris, Khareem Sudlow
