YouGov Affluent Perspective Holiday Forecast finds that online shopping for holiday gifts has reached a tipping point; but luxury gifts are still sought after at premium and upscale department stores.
In a year in which Americans are predicted to spend approximately $85 billion on gifts this holiday season (representing a 10% decline from 2015 for the affluent and a 7% decline for those making less than $150,000 in household income), holiday shopping online will supplant shopping in stores among the affluent, according to the 2016 YouGov Affluent Perspective Holiday Forecast. Whereas buyers of traditional luxury gifts will continue to turn to premium and upscale department stores to carry the brands they want in designer fashion, jewelry, watches and other personal luxury goods, affluent shoppers have indicated that they will rely on Amazon for luxury personal electronics.
Affluent gift-givers expect that half of their holiday spending will be done online, with little variance by generation, as Millennials (53%), Gen X (52%) and Baby Boomers (50%) plan on letting their feet and fingers do the shopping with similar frequency. Only the Mature generation, affluent people over the age of 71, is firmly committed to traditional forms of purchasing, with 37% of their gift spend to be made online.
Amazon’s influence on holiday shopping among the affluent is undeniable, as the retail giant will be responsible for 49% of all gift transactions made online by the affluent. As a matter of fact, 69% of affluent shoppers plan to shop on Amazon during the season, making it the most widely used retail sales channel – outpacing big box stores (43%), local businesses and traditional department stores (each at 33%), and warehouse clubs (30%).
For further analysis of the 2016 holiday shopping season, see our 2016 Affluent Perspective Holiday Forecast infographic below.