Gifts and Deals are on the Holiday Shopping List

Consumers have the holiday spirit in 2023 and will celebrate accordingly – Thanksgiving (97%), Hanukkah (14%), Christmas (96%) and New Years (78%).1 They expect inflation and a slow economy to affect celebrations (85%) but are shopping earlier with budget-friendly goals in mind.2 These tips will help you spread the joy.

• Shoppers will spend $1,530 on gifts, travel and entertainment.3
• Cutting costs is a consumer goal this holiday season.

Cost-Cutting Measures

• Buy Less - 58%
• Use more coupons - 47%
• Prepare budget-friendly foods - 39%
• Shop at dollar or discount stores - 34%
• Switch to store brands - 27%
• Travel less - 24%
• None of the above - 6%

Source: Numerator, “2023 Holiday Preview,” January 19, 2023

• Consumers are planning to shop – and save – on certain days.

Holiday Shopping Days

• Before the Holidays
  Plan to Shop - 16%
  Expect Deals - 26%
• Early November
  Plan to Shop - 27%
  Expect Deals - 37%
• Thanksgiving
  Plan to Shop - 6%
  Expect Deals - 9%
• Black Friday
  Plan to Shop - 19%
  Expect Deals - 17%
• Weekend after Thanksgiving
  Plan to Shop - 9%
  Expect Deals - 4%
• Cyber Monday
  Plan to Shop - 5%
  Expect Deals - 2%
• Cyber Monday
  Plan to Shop - 5%
  Expect Deals - 2%
• Between Cyber Monday and Christmas
  Plan to Shop - 16%
  Expect Deals - 5%
• Between Christmas and New Year
  Plan to Shop - 1%
  Expect Deals - 1%

Source: PwC, “Holiday Outlook 2023”

What are shoppers buying this holiday season?

Holiday Gifts

• Gift cards - 51%
• Apparel - 34%
• Toys - 34%
• Money - 32%
• Personal care items - 28%
• Food or beverages - 24%
• Home goods - 24%
• Entertainment - 23%
• Books - 22%
• Jewelry - 20%
• Alcohol - 18%
• Personal tech - 14%
• Activities (travel, dining, etc.)

Source: Morning Consult, “This Year’s Holiday Gift Spending Plans Mirror 2022’s,” Though Shoppers Hope to Save,” October 11, 2023

How will shoppers pay for holiday shopping in 2023?

Holiday Payment Methods

• Credit card - 74%
• Cash - 66%
• Savings - 28%
• Buy now, pay later - 15%
• Cash advance app - 8%
• Personal loan - 6%
• Payday loan - 4%
• Other - 3%

Source: NerdWallet, “2023 Holiday Shopping Report,” October 3, 2023

How should businesses prepare for the 2023 holiday season?

• Attract shoppers to your website, mobile app, AND physical locations. About 67% of shoppers decide what they’ll buy before coming to your store.4 Once at your location, 47% buy more products.5 That’s why an omnichannel strategy that includes search, video, social posts, localized ads, and other ways to engage with your brand is important.
• Offer attractive discounts. Consumers are worried about the economy and price increases but still want to gift family, friends, and coworkers during the holidays. Discounts will help meet their needs and ensure they return to your business after the holidays.
• Invest in digital campaigns. Retailers that spend more than 50% of their marketing budgets on digital have greater e-commerce penetration.6
• Offer reasonable return policies. A satisfying customer experience doesn’t just end with delivery. Sometimes products just aren’t a good fit and customers will want to exchange or return them.
  • 98% of shoppers will buy from you again if returns are fast and convenient.7
  • 86% of consumers check a company’s return policy before purchasing.8

For help preparing for the holiday season, simply complete a short form and a Synovus Merchant Services Consultant will be in touch to assist you. You can also stop by one of our local branches.