10.10.23
Pre-season sales events are ripe for the picking this holiday season when it comes to gift-giving.
According to new Mintel research, nearly half (44%) of US consumers who plan on shopping during the 2023 winter holiday season say they plan to do so during a pre-season sales event like the upcoming Amazon Prime Day.
Holiday shopping staples, Black Friday and Cyber Monday, remain popular. Over a quarter of holiday shoppers agree that it is even more critical to shop on these days due to inflation. When asked how inflation impacts their spending, 42% say they purchase fewer gifts, while a quarter say they switch to lower-priced retailers.
A Budget-Conscious Mindset Remains As Consumers Continue to Feel the Pinch
By year’s end, Mintel predicts consumers will remain cautious and maintain a budget-conscious mindset as they rebound from the financial pressures of the last few years. Three in five (59%) consumers who plan to holiday-shop say they want to spend the least amount of money possible. However, consumers will continue to prioritize winter holiday spending and are expected to leave room in their budget for gifting and celebrations. Sixty-two percent of winter holiday shoppers say they are elated to resume more in-person events and gatherings. In 2023, Mintel predicts that winter holiday sales will grow 5.4% to reach $1.07 trillion.
“While the inflation rate may be cooling from peak highs, consumers are still feeling the squeeze of economic pressures,” explained Brittany Steiger, retail and eCommerce analyst at Mintel. “In 2022, consumers pulled back on their holiday spending, purchasing fewer gifts and setting spending limits. This year, our research shows that consumers will participate more in pre-season shopping sales, such as Amazon Prime Day, to take advantage of the deals and discounts as they remain value-conscious and look to spend as little as possible.
One Man’s Trash Is Another’s Treasure
Nearly half (48%) of winter holiday shoppers agree they are open to shopping for pre-owned gifts, analysts say. This number increases to 68% of consumers ages 18-24 revealing Gen Z consumers are the most likely to secondhand shop this holiday season. The number of consumers planning to shop for the holidays in secondhand retailers grew eight percentage points compared to last year, rising to nearly a quarter (23%) of Gen Zs and Millennials.
“Value is once again taking center stage this holiday shopping season,” said Steiger. “Discount and secondhand retailers are expected to see continued growth as shoppers look to stretch their dollars farther and look for more affordable ways to shop. Nostalgia and vintage fashion trends have captivated Gen Z, making pre-owned shopping an ideal format for unique, on-trend finds. Additionally, lower-income shoppers are more likely to shop secondhand, looking to pre-owned items as a way to save money. As circular shopping becomes more widespread this holiday season, retailers and brands can embrace the trend by offering their own resale platforms.”