Shoppers are expecting big markdowns this holiday shopping season, and according to a poll by First Insight, consumers also expect online retailers to offer the best deals.
In a survey of more than 1,300 shoppers, the technology solutions firm said people “have become increasingly sales savvy and less willing to pay full price for items. This trend is especially prevalent during the holiday season, as shoppers have been conditioned to be on the lookout for large markdowns around Thanksgiving and Christmas.”
Researchers at the firm said 31 percent of respondents are looking for discounts on products of between 31 and 40 percent this year. And 39 percent of those polled “will enter a store for markdowns of 30 percent or less during other times of the year.” When asked “how far” they would go “for a savings of 50 percent,” 55 percent of respondents said they “are willing to post a selfie in an ugly holiday sweater or costume on social media.” Twenty-three percent said they would “travel more than 100 miles.”
The survey also revealed what consumers expect from online retailing this holiday season. “Sixty-one percent of respondents think they’ll find the biggest holiday deals online, and 71 percent of consumers think Amazon is king of markdowns,” First Insight noted.
That said, the researchers at First Insight said retailers “like Wal-Mart and Target may stand a chance against Amazon, though.” The firm asked respondents “to pick the two places they plan to do the majority of their holiday shopping.” Forty-six percent of those polled “chose online retailers and 45 percent chose big-box stores.”
Regarding when they plan to get the best deals, 32 percent cited Black Friday. “Meanwhile, 22 percent think the best markdowns can be found the day after Christmas, and 21 percent turn to Cyber Monday,” the company said.
Greg Petro, chief executive officer of First Insight, said retailers “feel the pressure during the holidays to provide the best deals to get shoppers through the doors, but this strategy can often do more harm than good.”
“In order to stop the race to the bottom, it’s more important than ever for retailers to listen to their customers before making key pricing decisions,” Petro added.