November 21, 2011
A few days ago, online coupon site Retailmenot.com released results from its inaugural holiday edition Shoppers Trend Report. A combination of consumer trend data pulled from activity on Retailmenot.com and a survey by Ipsos regarding near-term consumer sentiments, the report corroborates much of what Forrester recently predicted for this year’s holiday shopping season:
- Growth in overall retail spend will be positive but small. According to the Shoppers Trend Report, only 11% of consumers surveyed intend to increase their holiday spending. Similarly, the National Retail Federation (NRF) and Forrester predict the U.S. will see only a marginal increase of 2.8% growth in overall retail spending this holiday season.
- Coupon use is on the rise. 58% of US online adults say that they are more price-conscious today than they were a year ago. Not surprisingly, Experian Hitwise has seen downstream traffic from retailers to couponing sites grow 69% in the last three years. Similarly, Retailmenot.com has seen online coupon usage increase 23% in the months leading up to the holiday season. Seems if there’s a deal lurking out there on the internet, price conscious consumers are out to find it.
- Free shipping is preferred by online shoppers. 59%of US online adults say that they shop online more often with retailers that offer free shipping. In fact, according to the Shoppers Trend Report, free shipping is the coupon promotional offer most favored by consumers – preferred by 26% of all shoppers.
As long as the economy remains sluggish, we will continue to see the dual trends of flat overall spending and rising demand for coupon-based discounting. What’s new this year is that shoppers will be increasingly looking online to satisfy their couponing needs.
We are in a new normal now whereby shoppers will expect more and better deals as a pre-condition for their business. And until things change in the general macroeconomy, they’ll get them.