KPMG: Shoppers Headed to Mall This Holiday
According to KPMG’s “Consumer Pulse Survey: Holiday 2022 Update” for November, shoppers polled said they’re planning to spend less money online this year as compared to 2021.
The survey also found that consumers plan to shop at the mall more so than they did prior to the pandemic. And they’re planning to spend more there, too. By demographic cohort, the researchers at KPMG said Gen Z consumers “are most likely to do their 2022 holiday shopping at a mall (59 percent). However, Millennials expect to spend the most per trip to the mall ($439 per trip).”
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When asked about other channels, 76 percent of those polled said they’re going to shop at a mass market retailer such as Target and Walmart.
Regarding how much they plan to spend, consumers are planning to spend 5 to 6 percent more this holiday season as compared to 2021.
“Like September survey respondents, November respondents plan to purchase gifts for fewer people and spend approximately 10 more per gift this holiday season,” the authors of the report stated. “November shoppers are most likely to buy gifts for their children (58 percent) and significant other (57 percent), but as the holiday nears, shoppers appear to be cutting more people off their lists.”
By category, those polled said they expect to pay $111 on gift cards this year and $106 on apparel.
Matt Kramer, national sector leader of consumer and retail at KPMG U.S., said although consumers “are tightening their holiday budgets and spending just under core inflation, the shopping mall is making a big comeback, especially with Gen Z and Millennials. This year many more will begin holiday shopping on Black Friday through Cyber Monday as consumers are eager to find deals that can stretch their budget dollars.”
Looking at consumer worries, 83 percent of respondents cited inflation as a top concern, while 63 percent said stockouts are a looming issue. And of those polled, 57 percent were shipping delays. With inflation, the concern for retailers is weaker consumer spending, which makes managing inventory and controlling markdowns a challenge.
Brian Campbell, partner and tax industry leader of consumer and retail at KPMG U.S., said retailers “are struggling to dispose of their excess inventory this holiday season, and while they may have already expensed the inventory for financial statement purposes, their cash tax benefit will only be realized when their inventory is sold to their customers.”
“This will keep the pressure on retailers to properly balance the desire to hold pricing and the need to compete through promotional discounting to drive customer traffic and sell-through,” Campbell added.
