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Pittsburgh – Yes, consumers are expecting great deals this season, but new research suggests they’ll make exceptions for “the perfect gift.”
A new survey from First Insight, The State of Consumer Spending: Holiday 2022, reports that for the perfect gift, the willingness to pay full price is found not only among the wealthiest or oldest consumers.
Across household income breakdowns, 82% of consumers in the $200,000+ bracket, 83% between $50,000 and $199,000, and 77% with under $50,000 all report they will pay full price for gifts the recipient desires.
On a generational basis, 87% of Gen Z, 83% of Millennials, 75% of Baby Boomers, and 73% of Gen X say the same. Furthermore, 82% of men and 77% of women agree that they will pay full price to secure the right gift.
The study also found that consumers’ expectations around discounts are lower this year across categories. On average, 53% of shoppers said they would purchase on a 0-30% discount compared to only 41% in 2020. This finding indicates that retailers may be over-discounting this holiday season, according to First Insight.
“Retailers are second-guessing themselves into the red this holiday season by reverting to the same, tired promotional formulas that would be unnecessary with the right data,” said Greg Petro, CEO, First Insight. “And to think that just last year, with supply chain shortages, retailers said that deep Black Friday discounting was a thing of the past.”
A major deal-breaker for consumers isn’t lack of discounts but paid returns, per the report.
Seventy-five percent of shoppers said they would avoid shopping at retailers that charge for returns. The includes 92% of the affluent shoppers in the $200,000+ bracket, 79% of those earning $50,000 – $199,000 and 70% of shoppers with average household incomes below $50,000.
Generationally, Baby Boomers are the most adamantly opposed at 84%, followed by Gen X at 76%, Gen Z at 71% and Millennials at 69%.
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