Holiday shopping season is upon us: The significance of blending online and offline appeal for retailers to secure victories this year.
Holiday shopping traditions are making a comeback this year as Americans eagerly restore pre-pandemic customs. According to a recent survey conducted by the National Retail Foundation, over sixty percent of holiday shoppers regard gifts and seasonal celebrations as a priority, even if it means cutting back on other expenses to afford them amidst rising prices and inflation. This trend is reflected in navigation data from Waze, which shows an increase in consumer visits to retail stores during the holiday season's initial sales in October, up by 19% compared to the previous year and 5% compared to the preceding period.
The revival of in-store shopping experiences is indicative of their enduring importance in the omnichannel shopping journey during the holiday season. A survey of retail brand and agency executives, conducted by Retail Dive's StudioID on behalf of Waze, found that a larger percentage of consumers will purchase more expensive items in physical stores rather than online, a statistic that increased by 6.6% from the spring of 2022. Furthermore, the survey noted that shoppers tend to purchase more items when they buy in person.
Brick-and-mortar stores hold unique value for retailers this holiday season, as those who can effectively lure consumers into their stores and sway their last-minute purchasing decisions are poised to capture a substantial share of the market. This can be accomplished through a thoughtfully designed omnichannel engagement strategy.
Despite the surge in e-commerce, consumers still make the majority of their retail purchases in physical stores, according to Waze navigations. Surprisingly, the number of on-the-go consumers actually driving to retailers has increased, despite the U.S. Consumer Price Index having risen by 8.2% over the same period. This increase in drives during the critical retail quarter was observed in 2021, with navigations to retail locations escalating by 13%. In the third quarter of 2022, Waze navigations to brick-and-mortar retail stores increased by 6.3% year-over-year. Significant growth was recorded in visits to personal care stores (up 8.2%) and department stores (up 12.8%).
Constantly rising costs have not deterred consumers, who continue to place a premium on human connection and personal experiences in retail stores. Consumers' driving behavior and anticipated spending this holiday season reflect this resilience, according to Liz Franz, Head of Industry for Retail at Waze. Advertising on Waze offers retailers the opportunity to be contextually relevant and remind drivers of their brand in favorable moments close to their stores.
By blending digital and physical experiences, retailers can maximize customer delight, attract high-value, on-the-go shoppers, and effectively drive traffic to their storefronts. Targeted strategies presenting enticing offers are essential for attracting consumers to brick-and-mortar locations, where they are more likely to make purchases. Waze offers various advertising options, such as the Waze Branded Pin and Waze Takeovers, which can provide location awareness to drivers as they navigate and present compelling offers to guide consumers directly to the stores.
In conclusion, the 2022 holiday shopping season is expected to be stronger than the previous year, with brick-and-mortar stores continuing to play a vital role in the omnichannel retail strategy. The seamless integration of online and offline experiences, enhanced in-store experiences, and the smart use of technology will be key factors in achieving retail success this holiday season. Retailers who can cater to consumer demand for convenience and affordability while offering exceptional experiences in their stores will be well positioned for success.
- Artificial intelligence could be utilized by retailers to analyze consumer behavior and preferences during the holiday season, allowing them to tailor their in-store experiences effectively.
- Amidst the ongoing war of retail dominance, finance departments will play a crucial role in managing costs and promoting affordable retail solutions, especially during the holiday season.
- As shoppers prioritize lifestyle and home-and-garden items for their holiday gifts, retailers must ensure their stores offer a wide variety of products to cater to this demand.
- The pandemic has changed consumer behavior and expectations, with more emphasis on contactless shopping options. Retailers should adopt these changes to meet shoppers' new lifestyle needs.
- According to a recent study, shoppers are increasingly planning their holiday shopping trips months in advance, making it essential for retailers to start aggressively marketing their seasonal sales early.
