In a challenging economic climate, many consumers are preparing to shop on a tighter holiday budget this year. Still, shoppers are approaching the season with a sense of adventure. A new survey finds that many are looking forward to hunting for deals and returning to brick-and-mortar stores in the coming months.
According to the data from discount retailer Burlington, more than half of respondents surveyed are looking forward to the challenge of holiday shopping on a smaller budget. The thrill of the hunt appears to be a major draw: 87% say getting a great bargain is more satisfying than owning a luxury item.
That could bode well for retailers that compete on value, from Amazon’s Deals section to off-price chains such as Marshalls and HomeGoods.
“This research continues to underscore the formation of the K-shaped economy,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “Wealthy consumers are much less price sensitive and also less affected by the current economic conditions, while a large group of paycheck consumers will see their holiday budgets crimped by the high cost of fuel and other commodities compounded by rising inflation.”
Navigating Economic Pressures
Despite economic uncertainty, most respondents expect to spend the same amount or more this year than they did last year, even as nearly 60% worry about exceeding their budgets. Those financial pressures are also influencing purchasing decisions.
Dupe products, or lower-cost alternatives to more expensive goods, remain popular, particularly in the beauty sector. More than three-quarters of respondents said they would consider trying beauty dupes instead of higher-priced products. Among Gen Z shoppers, that figure rises to 86%.
A Return to the Mall
Many shoppers are also eager to return to physical stores, draw by experiences that online shopping can’t replicate. The biggest appeal, according to the survey, is the ability to interact with products and try them before making a purchase.
Other draws include discovering unexpected finds, scoring bargains, and taking purchases home immediately rather than waiting for delivery. More than half of respondents also cited the simple pleasure of getting out of the house.
