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Shoppers Trend Reports

RetailMeNot Shoppers Trend Reports

Volume 3, Edition 1

RetailMeNot Issues Shoppers Trend Report – Retail Forecast for 2014:

Economic Confidence Strong as Almost 7 in 10 Consumers Surveyed Expect to Make More Money, Save More Money and Afford the Things They Need

  • Just charge it! More than 6 in 10 (62%) consumers surveyed used credit cards to pay for their winter holiday gifts
  • I’m a spender! Almost 4 in 10 (39%) people surveyed describe themselves as spenders, not savers
  • Let’s go to the computer! Of those surveyed who are planning to shop online in 2014, 87% plan to shop the same amount or more, with more than a quarter (26%) planning to shop more

Austin, TX, January 15, 2014 — An optimistic outlook from consumers in 2014 helps to positively jump-start the year! RetailMeNot (www.retailmenot.com), the largest digital coupon destination in the United States, just announced survey research with The Omnibus Company (www.omnibus.com) that suggests consumers feel that 2014 will bring more personal wealth, improved savings and confidence to afford all the things they need.

This Retail Forecast for 2014 reviews consumers’ retail behavior last year and projects how consumers will shop in the coming year to help shoppers and retailers alike find the best path forward in 2014 to save money and drive sales, respectively. In addition, it compares these predictions to RetailMeNot.com coupon click activity in eight distinct product categories during 2013 (e.g., clothing, consumer electronics, beauty products, etc.) to call out any differences between what consumers said they intend to shop for in 2014 and what they did shop for on RetailMeNot.com during comparative periods in 2013.

The Christmas Debt Hangover

Did you receive pricier holiday gifts from your married friends or family members versus your single friends or family? Research suggests that that could be the case!

  • In fact, nearly 2 in 10 (19%) married consumers surveyed carried $500 or more in debt from their winter holiday gift purchases into 2014 compared to just 11% of non-married people.
    • Over 1 in 10 (11%) married consumers carried over $1,000 or more in debt just from the winter holidays compared to just 3% for non-married.
  • Children appear to have been on the good list last year.
    • Parents surveyed carried over almost twice as much debt from the 2013 winter holidays as compared to shoppers without children.
    • 22% of parents in the survey said they owed $500 or more from winter holiday gift purchases compared to 12% of those without children.

Charge it!

How were people spending their way through the winter holidays in 2013? Plastic!

More than 6 in 10 (62%) reported that they used credit cards (non-store or store-branded credit cards) to pay for their winter holiday gifts in 2013.

  • Close to 4 in 10 (39%) used non-store credit cards (e.g., Visa, MasterCard, American Express or Discover) to pay for their winter holiday gifts.
    • 46% of married consumers used non-store credit cards to pay for their purchases compared to only 32% of those not married.
  • Nearly a quarter (23%) of shoppers surveyed used store-specific credit cards to make a holiday gift purchase (e.g., their Macy’s or Kohl’s charge card to make a purchase)
  • Almost half (49%) of respondents who live in the Northeast used non-store-specific credit cards to make holiday gift purchases, compared to 37% of those who live elsewhere.

Parents love cash.

  • Nearly 8 in 10 (77%) parents surveyed used cash to pay for their gifts as opposed to 59% of those without children.
  • 7 in 10 parents (70%) surveyed also used debit cards to pay for gifts versus 49% of non-parents. 
    • Of all consumers surveyed, 65% used cash at some point to make a holiday gift purchase in 2013.

Talk about a regift! Many consumers used their gift cards to buy holiday gifts for others in 2013—maybe even for the person who bought them the gift card in the first place.

  • Almost half (44%) of parents polled used gift cards to pay for their holiday gifts as opposed to 26% without children.
  • On average, more than 3 in 10 (32%) admitted to using gift cards to pay for their winter holiday gifts.

Hey, Big Spender …

If responses for consumers are to be believed, 2014 is set to feel like the Reaganomic years of the 1980s. Possibly driven by the sentiment that their income will improve (68%), almost 4 in 10 (39%) survey respondents describe themselves as spenders rather than savers. 

  • Almost half of parents (49%) admit to being more of a spender than a saver versus 35% of those without children.

The 2014 Retail Forecast

“Let’s go to the mall!” — The 2014 Consumer

The data is in. People expect to make more, save more and shop more in 2014. 

According to RetailMeNot’s survey, 62% intend to spend the same or more during January 2014 than they normally do while shopping during the first month of the year. Breaking it down further:

  • 79% of consumers surveyed said that they intend to shop the same amount or more online in 2014 versus the prior year, with nearly a quarter (24%) saying they intend to shop online more this year.
  • Consumers surveyed said that holiday-themed sales continue to be attractive. The following are the holiday sales consumers shop the most:
    • Black Friday: 36%
    • Cyber Monday: 32%
    • Thanksgiving Day: 25%
    • Mother’s Day: 17%
    • Valentine’s Day: 16%
    • Labor Day: 14%
    • July 4th: 14%
    • Memorial Day: 14%
    • Father’s Day: 13%
    • Easter: 11%
    • Presidents Day: 10%
  • 54% of consumers surveyed said they intend to shop “sale” days in 2014 for the winter holidays (Christmas, Hanukkah, etc.), and 62% of parents said they were going to shop back-to-school sales.

When you look at retail products by category, the difference between what consumers say they are shopping for versus what they are actually shopping for on RetailMeNot.com is fascinating.

RetailMeNot’s Retail Forecast attempts to ascertain what consumers are shopping for in 2014 and when they intend to shop within the calendar year. To gain insights into these patterns, RetailMeNot reviewed important qualitative and quantitative sets of data from:

  1. An omnibus survey of 1,014 consumers conducted by The Omnibus Company that inquired about shoppers’ intended purchasing behaviors in 2014.
  2. RetailMeNot’s coupon click activity in eight distinct product categories during 2013 (e.g., clothing, consumer electronics, beauty products, etc.) to call out any differences between what consumers said they intend to shop for in 2014 and what they did shop for on RetailMeNot.com during comparative periods in 2013.

The end goal was to study and call out any differences between what consumers said they typically were buying each month, and what they did buy (using coupon clicks as evidence of actual shopping activity).

  • Clothing & Shoes:
    • According to Omnibus research, 76% of consumers said they typically shop for clothes and shoes throughout the year. The survey revealed no major spikes or declines regarding when these purchases typically take place. February was the lowest with 17%, and September was the highest with 26% of consumers who said they intended to make purchases in this product category.
    • RetailMeNot’s coupon click data showed that while September 2013 represented an above-monthly-average coupon click rate for coupons (nearly 10% above) in this category, November (85% above average) and December (111%) represented significantly more demand.
  • Computers & Electronics:
    • According to Omnibus research, less than 10% of consumers said they were interested in shopping for computers and electronics January through October. There was a moderate increase in interest in November (13%) and December (14%). That being said, an overall 51% of consumers surveyed said they would typically make a purchase within this product category at some point during the year.
    • While consistent with the research that January through October represented below-average interest in 2013 for coupons within this category, RetailMeNot.com’s 2013 coupon click data showed considerable, more pronounced spikes in coupon click activity for computer and electronics offers in November (93% above average) and December (127%). 
  • Books:
    • According to Omnibus research, 51% of consumers typically shop for books during the year. Interest in purchasing these items fluctuates between 14% and 18% throughout the year, with heightened interest in January (17%) and August/September/December (18%).
    • RetailMeNot.com’s 2013 coupon click data showed that activity was strongest in January (67%), August (82%) and December (156%).  Interestingly, while September marks the official start of the school year, RetailMeNot.com experienced only an 11% increase in coupon clicks for books. The month in 2013 where consumers were least interested in buying a book? April, when coupon click activity was 65% below the average.
  • Home & Garden:
    • According to Omnibus research, 55% of consumers typically shop for home and garden products and supplies during the year. Interest is highest in purchasing these products and supplies in May (20%), June (17%) and April (16%). Not very shocking, interest is lowest in January (6%) and February (6%).
    • RetailMeNot.com’s 2013 coupon click data told a different story of demand and interest in home and garden product categories. April
      (-26%), May (-16%) and June (-18%) represented below-average monthly coupon click activity, whereas October (+24%), November (+59%) and December (+103%) represented significant spikes in above-average coupon click activity.
  • Automotive Parts or Supplies:
    • According to Omnibus research, 42% of consumers surveyed said they typically make an automotive parts or supply purchase during the year. That said, automotive purchases are spread out throughout the year, as 10% or less of consumers surveyed intend to make this purchase each month.
    • RetailMeNot.com’s 2013 coupon click data showed that interest in automotive coupons was below the monthly average from January through July. February 2013 represented the month with the least consumer activity at 43% below the monthly average. August 2013 represented near-average-demand behavior for coupons in this retail category (-0.64%) while September (+15%), October (+21%), November (+66%) and December (+77%) all represented above-average coupon clicks.
  • Travel:
    • According to Omnibus research, 57% of consumers surveyed said that they typically make a travel-related purchase during the year. May (11%), June (17%), July (20%) and August (14%) are when the highest-expected number of travel purchases will be made.
    • RetailMeNot.com’s 2013 coupon click data showed that May (+3%), June (+12%), July (+20%), August (+6%), October (+5%), November (+7%), and December (+15%) all represented above-average coupon clicks on travel-related offers. January (-22%) and February (-23%) represented the below-average months for consumers seeking travel offers.
  • Health & Beauty:
    • According to Omnibus research, 62% of consumers surveyed said they typically purchase a health and beauty product within the year. Throughout the 12-month period, roughly 1 in 4 consumers surveyed said they typically make this type of purchase each month.
    • RetailMeNot.com’s 2013 coupon click data showed that February
      (-49%), March (-45%) and April (-37%) represented below-average months for consumers seeking out and clicking on coupons for these products. October (+9%), November (+62%) and December (+199%) represented above-average months for coupon click activity.
  • Toys:
    • According to Omnibus research, 48% of consumers surveyed said they typically purchase toys within the year. Between 4% (in February) and 8% (in October) of consumers in the first ten months said they typically make a toy purchase each month, with November (17%) and December (27%) being the leading months.
    • RetailMeNot.com’s 2013 coupon click data showed that October (+20%), November (+101%) and December (+138%) all represented significantly high above-average months. February (-45%), January
      (-36%) and March (-35%) were the most below-average months for consumers.

Conclusion: Consumers love a good sale … online and in-store

So, Joe and Jane Consumer feel as if 2014 will come with good things: more money, bigger savings accounts and the ability to afford the things they need and want in the next 12 months.

What can retailers do to harness their purchasing power?

While it may sound self-serving, retail promotions continue to be an effective way to attract consumers online and in-store during peak periods. 67% of consumers (72% of women) surveyed said that they wanted retailers to offer more discounts in 2014 than they did in 2013.

If retailers discount the right item at the right time, consumers will be there. Just remember that certain items peak during specific holidays or shopping calendar days each year. For example, a sale on automotive parts in February might not generate the demand desired if deal-seeking activity isn’t robust during that period.

Shoppers also want more choice, convenience and a seamless shopping experience across online and in-store shopping opportunities. 

  • Nearly 1 in 4 (24%) of consumers said that in 2014 they hoped retailers would offer wider product selections online than what they carry in-store.
  • Consumers like the convenience of ship-to-store. In fact, 44% of shoppers, including 49% of women, said that they wanted retailers to give consumers the ability to avoid shipping costs by ordering online and picking up in-store.
  • Nearly 1 in 4 (23%) consumers said they want a more seamless experience between their in-store and online shopping activities. Retailers should ensure shoppers’ desktop, app, tablet and in-store experiences are all interconnected. 

Finally, e-commerce and omni-channel divisions of retail businesses take note: While consumer usage of the desktop format is still king, m-commerce is coming up from the rear, meaning you better have a good mobile experience. RetailMeNot recommends retailers continue to make investments in their mobile channels based on the survey results below:

  • Desktop: 90% of consumers surveyed planned to use their desktop computer to shop in 2014 versus 53% who planned to use a smartphone and 47% a tablet.
    • 82% of those surveyed said they intended to use their desktop computer the same amount or more to shop in 2014 than the prior year
  • Smartphones: 48% of consumers intend to use their smartphones to shop the same or more in 2014 than the prior year.
    • 19% said they intended to use their smartphones more in 2014 to shop than the prior year.
    • More than 3 in 10 (32%) of those surveyed said they purchased a new smartphone or upgraded their smartphone in 2013. In 2014, another 29% plan to do the same.
  • Tablet: 42% of consumers intend to use their tablets to go shopping the same or more in 2014 than the prior year.
    • 15% said they intended to use their tablets more in 2014 to shop than the prior year.

Retailers can contact advertise@rmn.com for more information. Analysts or press can contact media@rmn.com with any questions.

Report Methodology

Omnibus Information: The RetailMeNot January survey was conducted between December 26, 2013, and January 3, 2014, among 1,014 U.S. residents ages 18 and over, using an email invitation and an online report. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. In this particular study, the chances are 95 in 100 that a report result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample. The margin of error for any subgroups will be slightly higher.

Coupon Click Data: RetailMeNot reviewed the average number of monthly coupon clicks on RetailMeNot.com for eight categories of retailers in 2013, including those primarily selling clothing and shoes; computers and electronics; books; home and garden supplies; automotive parts and supplies; travel; health and beauty; and toys. Coupon clicks on digital coupons from multi-category retailers (like Target, Walmart, Amazon and eBay) were excluded.  RetailMeNot reported increases or declines in click activity from the average monthly click activity in 2013.

About RetailMeNot.com

RetailMeNot.com (www.retailmenot.com) is the largest digital coupon destination in the United States. Our mission is to help consumers save money and enjoy a hassle-free discount shopping experience. Since November 2006, our users have shared hundreds of thousands of digital coupons from retailers. Digital coupons are rated and ranked by users, ensuring that quality deals rise to the top and expired coupons drop down the list. RetailMeNot.com is operated by RetailMeNot, Inc., the world's largest marketplace for digital coupons.

Shopping on the go? Download the RetailMeNot Coupons app for iPhone and Android phones to access Hot Deals, browse top coupons, popular stores and categories and get thousands of online and in-store coupons to shop when you want, where you want. Make sure to "like" RetailMeNot.com and authorize the RetailMeNot app on Facebook, follow the company via Twitter @retailmenot and add us on Google+. Consumers can sign up for RetailMeNot's Online and In-Store Coupons Newsletter by visiting: http://www.retailmenot.com/signup. 

About RetailMeNot, Inc.

RetailMeNot, Inc. (www.retailmenot.com/corp/) operates the world's largest digital coupon marketplace. The company enables consumers across the globe seeking to save money to find hundreds of thousands of digital coupons from retailers. RetailMeNot, Inc. experienced more than 500 million visits to its websites in the last 12 months. The RetailMeNot, Inc. portfolio includes www.RetailMeNot.com, the largest digital coupon marketplace in the United States; www.RetailMeNot.ca in Canada; www.VoucherCodes.co.uk, the largest digital coupon marketplace in the United Kingdom; www.Deals.com in Germany; www.Actiepagina.nl, a leading digital coupon site in the Netherlands; Bons-de-Reduction.com and www.Ma-Reduc.com, leading digital coupon sites in France; www.Poulpeo.com, a leading digital coupon site with cash back in France; and www.Deals2Buy.com, a leading discount offer site in North America. RetailMeNot, Inc. went public in July 2013 and is listed on the NASDAQ stock exchange under the ticker symbol "SALE." Investors interested in learning more about the company can visit: http://investor.retailmenot.com/.

Be sure to "like" RetailMeNot, Inc. on Facebook and follow the company via Twitter @retailmenotinc.

Media contacts:

Christy Rabil

RetailMeNot, Inc.

+1 512 777 2897 office

+1 646 554 8873 mobile

crabil@rmn.com

 

Kristen Nelson

RetailMeNot, Inc.

+1 832-398-5792 mobile

knelson@rmn.com

 

Allison+Partners Public Relations

retailmenot@allisonpr.com