The holidays are fast approaching, and retailers are gearing up for a shorter shopping season this year since Thanksgiving is particularly late. Despite economic fears and the ongoing trade war, the season is still looking promising for big retailers, according to Deloitte’s 2019 Holiday Shopping Survey, which surveyed 4,410 consumers across the U.S.
As it’s becoming easier for consumers to shop online rather than in stores, Deloitte’s survey results show that Cyber Monday is more relevant than Black Friday. In fact, 53% of the study respondents plan their holiday shopping around Cyber Monday, versus the 44% who plan around Black Friday.
“We found Cyber Monday to be much more important now than even Black Friday,” said Rodney Sides, Deloitte U.S. retail leader, on YFi AM. “People are looking, they want to go online. They've got the time on Cyber Monday. A lot of those promotions are pushed to that Monday versus the Friday, and so as a result, folks are spending time there.”
Between companies’ growing online presences, and the competitive need to offer consumers more convenient shipping options, online retailers have become the biggest source of shopping. The retail format has changed from 47% of consumers preferring to shop online in 2015, to now 64% preferring to shop online in 2019.
Shipping options are another big factor when it comes to consumers’ shopping preferences. The study shows that when it comes to free versus fast shipping, consumers seem to like to spend less.
“About 85% of respondents said they prefer free shipping over fast, and then we determine what is fast versus free. So fast is two days or less, free is reasonable, within about five days. So those who are able to meet those demands are going to win,” Sides said.
The study reports that 67% of consumers who opt for fast shipping want delivery in less than two days, and 68% of consumers who opt for free shipping are willing to wait three to seven days. In addition to Amazon’s (AMZN) all-year-round free shipping for Prime Members, big retailers that are offering free shipping this holiday season include Target (TGT), Best Buy (BBY), and Apple (AAPL).
“They're [consumers] going to spend a fair amount of money. We see the spending to be up year-over-year,” Sides said. “We think the whole holiday is going to be over $1.1 trillion.”