With holiday shopping season just around the corner, consumer needs and behaviors continue to evolve. Oracle’s recent Retail Shopper Outlook study revealed that while consumers are eager to return to shopping in-store and are ready to buy, ongoing factors such as rising inflation and supply chain issues will impact their patience and pocketbooks.


Retailers will need to evolve their holiday strategies if they want to reach and retain shoppers. Here are some of the most important trends to consider, and how to adapt to ensure a successful holiday season.

Price is king

The current economic environment has made today’s consumers extremely price conscious. Oracle’s retail study shows that nearly half (47%) of shoppers say that they are compelled to make a purchase based on a great price, while 39% are attracted by a special offer or discount. More than two thirds (77%) even say they plan to shop early in order to get the items they want and have more time to shop for deals.


Nearly three-quarters of people (71%) also plan to wait for big retail sales moments and store holiday sales from their favorite retailers. While Black Friday is still top of the list with 47% of shoppers planning to participate, close behind are Amazon Prime Days (43%) and after holiday sales (30%)


Retailers must balance competitive pricing with tight margins. A solid technology stack with planning and optimization capabilities can give retailers a leg up in this area by optimizing and customizing offers by price, audience, channel, and availability to get in front of budget-savvy shoppers.

Inventory issues still a thorn in consumers’ sides

Holiday shoppers often know what they want, and inventory issues from out-of-stock items (29%) and delays in shipping or receipt (24%) are some of consumers’ biggest gripes. Some consumers even say they will simply go to another retailer if the item they want is out of stock. With supply chain disruptions continuing, retailers need to have a plan in place to ensure minimum disruption and customer impact.


One critical area many retailers can improve is supply chain visibility. With a real-time view of the supply chain, retailers can address constraints as quickly as possible, resulting in fewer customer disappointments and missed sales. Bolstering inventory management, demand forecasting, and receipt flow will lead to better supply chain execution and order fulfillment.

Retailers must be mindful that they are competing for consumer dollars and mindshare with their desire to spend on experiences after several years of mainly staying home.

Adapting to how, where, and when the consumer prefers to shop

This year, consumers want to shop their way. While some will certainly take advantage of the convenience of online shopping, many prefer to browse for items in-store, depending on what they’re shopping for. For example, people shopping for luxury items would greatly prefer to purchase in-store, while those shopping for toys will most likely purchase online. Retailers will need to make sure customers can pay how they want, keeping in mind that more than half (51%) prefer to pay with a debit or credit card, while 23% still want to pay in cash. A rising 19% will want to pay with a mobile payment app.


Retailers should also note that many consumers are not only looking to buy material goods this year, as many are eager to spend on experiences after several years of mostly staying at home. According to the research, four out of ten consumers (41%) globally plan to spend an equal amount on things and experiences in the next 6-12 months, and one in four (26%) plan to spend more on experiences than material goods. Retailers should see this as an opportunity to provide consumers with what they’ll need for their trips, including new clothes, luggage, cosmetics, and more.


All signs point to this being another interesting, somewhat unpredictable, shopping season for retailers. These trends indicate that retailers will need to be flexible to adapt to changing consumer preferences and ensure the holidays go off without a hitch.


GO TO TOP

 Nov 2022

How Retailers Can Adapt to New Consumer Behavior Trends this Holiday Shopping Season

By Mike Webster, SVP and GM, Oracle Retail 

As senior vice president and general manager of Oracle Retail, Mike Webster is responsible for strategy, enablement, development, sales, service, and support. Oracle Retail provides deep, industry-specific domain expertise to deliver mission-critical solutions that help customers realize their most important business initiatives.

Webster has more than 28 years of retail industry experience, working with hundreds of retailers in more than 30 countries. His expertise spans enterprise applications, data warehousing, and store-automation solutions. He is widely acknowledged for leading the global expansion of self-checkout across multiple formats.

Throughout his career, Webster held various senior management positions in business strategy, corporate communications, and government affairs in service to the retail and hospitality industries. He also led the acquisition of leading self-service solutions for the retail, travel, and healthcare industries. Webster holds a bachelor's degree in management from the University of Dayton.

COVER STORY

Jochen Heck

VP Sales - Retail

Colleen Baum

Partner 

Amy Vener

Marketing Director

Mike Webster

SVP and GM

Karl Haller

Partner

Jill Standish

Sr. Managing Director

07/05/2024 16:45:34
  • Holiday Season 2022
  • Editorial
  • Table of contents
  • Table of contents
  • US holiday shopping 2022
  • A Retailer’s Guide To The 2022 Holiday Season
  • Resilient Retailing
  • Adapting to New Consumer Behavior Trends
  • Celebrating in Uncertain Times
  • Meet the omni-buyer this holiday season
  • The Shifts Driving Retail
  • Satisfying Holiday Shoppers in the Digital World
  • Maximizing Online Store Performance for this Black Friday and Cyber Monday
  • eCommerce: Preparing for the Holiday Traffic Spikes
  • What brands need to know for the holidays
  • Product Imagery to Boost eCommerce Coversion
  • AI/ ML and the Shopping Experience
  • How AI can help retailers retain revenue this holiday
  • Gift Cards: The Preferred Employee Reward
  • Gift Cards: The Vital Revenue Driver
  • Personalization and Loyalty in Grocery Retail
  • Marketing in the Moment
  • Holiday E-commerce Campaign
  • Target and Convert Holiday Shoppers
  • Analytics for the Win
  • Customer Expectations 2022
  • Connected Customer Engagement
  • Managing Consumer Distrust
  • Online grocery experience
  • Leverage Holiday Return Spikes to Drive Customer Retention
  • Right Product Information to Reduce Returns
  • Returns Management
  • Managing the Surge in Payment Processing
  • Preparing Shopping Bot Attacks
  • Holiday Cyber Attacks: How to Outsmart the Bots
  • Top 5 Bot Attacks that Online Retailers Should Prepare For
  • Fighting the Scammers
  • Retail Ransomware
  • Retail employee engagement
  • Operational Communication for the Holiday Season
  • Empowering the Grocery Workforce
  • Retail Workforce Challenges
  • Fully Connected Retail Supply Chain for the Holiday Season
  • Prep up the Retail Supply Chain for Peak Season
  • Combating Supply Chain Disruption
  • Prepare CX Teams to Manage the Longer Holiday Shopping Season
  • Retail Hiring for the Holidays
  • Mercatus_Ad
11/14/2022 00:00:00