Tech could drive more business for indie retailers this Christmas
Posted on in Business News
New research from Square and Clearpay indicates consumer confidence is rising, with 72% of consumers planning to spend more or the same this coming holiday season compared to last year, including 39% of Gen Z. To capitalise on this optimistic consumer outlook, 59% of sellers expect sales to increase this Christmas as they lean into technology to streamline operations and build new revenue streams.
“We’re prepared for a busy festive season this year”, Gerard Levy, Owner of Spice London told Business Leader magazine. “Our online store and social platforms are continuing to drive awareness and we’re seeing more of our local and international clients returning to our London location and shopping in-store.
“As an independent business, we know this is an important time for retail and will be exploring new and innovative ways we can sell and accept payment while making our brand, products and gift cards accessible to our customer needs and demands.”
While sellers will draw consumers into stores with tried and tested methods such as curated holiday products (38%), hosting in-store holiday events (42%) and offering repeat festive discounts (76%), many retailers are missing an important opportunity with AI to offer shoppers an efficient shopping experience. While Gen Z and Millennials are adopting AI at the fastest rate (35% and 30% respectively) and are using AI to get product information (32% and 40% respectively), just 19% of sellers plan to use it to streamline operations.
Sellers should look to meet consumers where they are, which means prioritising social media. More than a third (35%) of consumers state they find gift inspiration from social media, 73% amongst Gen Z and 56% among Millennials. Specifically, half of Gen Z consumers (48%) are getting their gifting inspiration from TikTok while other popular digital channels include shopping apps (24%) and websites, blogs or forums (18%) and wish lists (15%).
Consumers value flexible payment options – almost half (48%) have used Buy Now, Pay Later (BNPL) services in the past as they believe paying in instalments helps them manage their money.
While it is expected that Gen Z prefer to buy Christmas gifts online (59%) rather than in-store (41%), the older Gen X generation matched this younger cohort in their shopping preferences. An omnichannel strategy remains crucial however, for businesses to succeed during the holidays. Physical store visits remain popular for gift inspiration, with 42% of businesses planning to host festive in-store events to engage consumers. Word of mouth recommendations (46%) are also a driver for inspiration.