Survey Reveals Retailer and Consumer Sentiment Ahead of the Holiday Season

Manhattan Associates Inc. (NASDAQ: MANH) released the results of its 2024 Supply Chain Confidence Survey, which gathered insights from 250 retail executives, 250 supply chain logistics professionals, and 500 consumers. Conducted in September 2024, the survey explored the challenges and expectations surrounding the upcoming holiday season, revealing concerns over inflation, gift prices, and how retailers are adjusting their strategies.

“This is a unique holiday season in many respects, but retail and supply chain leaders are confident in their ability to meet consumer expectations,” said Ann Sung Ruckstuhl, SVP and Chief Marketing Officer of Manhattan Associates.

Economic Pressures on Consumers

Economic pressures are weighing heavily on shoppers, with 85% of consumers citing inflation and increased prices as their top concerns this holiday season. To address these challenges, nearly 61% of supply chain leaders have implemented new technologies and processes to enhance efficiency and reduce costs.

High Costs for Holiday Spending

Both retailers and consumers are feeling the squeeze from inflation. Approximately 70% of retailers anticipate higher costs during the holiday season, while 85% of consumers are concerned about price increases. The survey found that 64% of consumers have cut back on non-essential purchases due to inflation. To counteract this, 52% of consumers are prioritizing deals and discounts above all other shopping criteria.

Retailers Respond with Efficiencies and Cost-Cutting Measures

In response to inflation, retailers are leveraging new technologies, streamlining operations, and implementing cost-reduction strategies. Over 61% of retailers have invested in technologies to improve supply chain efficiency. As a result, 44% plan to reduce seasonal hiring in stores, while 58% of supply chain leaders intend to increase their workforce to handle peak omnichannel demand. Retailers are also adopting automation technologies to manage rising costs and cope with last-minute order surges.

Nearly 70% of retailers plan to offer increased discounts to attract budget-conscious consumers, with 56% leveraging loyalty programs and 34% offering flexible payment options.

AI Technologies in Retail

AI is playing a significant role in helping retailers address these challenges. 80% of retail and supply chain leaders view AI as a key tool for improving inventory management, demand forecasting, and customer service during the holiday season.

Consumer Confidence in Fulfillment Capabilities

While concerns about delivery reliability remain, 46% of consumers do not expect major shipping issues this year. Instead, shoppers are prioritizing cost-effective options over rapid delivery. Consumers care more about tracking their orders and knowing the estimated arrival time than receiving items as quickly as possible. Despite these concerns, 92% of retailers are confident in their fulfillment capabilities, with 87% of supply chain leaders prepared for potential disruptions.

Holiday Shopping Starts Early

The shortened holiday shopping period, with only 27 days between Thanksgiving and Christmas, is prompting consumers to plan ahead. The survey revealed that 40% of shoppers are starting their holiday purchases earlier to spread out their spending. Free shipping is a top priority for nearly 65% of consumers, while instant gratification is taking a backseat.

The Impact of the 2024 Election on Holiday Spending

The survey also found that the upcoming presidential election is influencing holiday spending behavior across generations. Baby Boomers are twice as likely as Millennials to reduce their spending if their preferred candidate does not win. Additionally, concerns about post-election disruptions are driving more consumers toward online shopping, with 22% planning to avoid malls and 25% preferring to stay away from crowded areas.

Looking Ahead

“This holiday season presents unique challenges, but retail and supply chain leaders are prepared and confident in their ability to meet consumer expectations,” said Ruckstuhl. “The key to success will be agility and the right technology. Retailers need a unified commerce approach and complete visibility into their supply chains to provide a seamless customer experience.”

Methodology

Manhattan Associates’ Supply Chain Confidence Survey was conducted by a third-party provider between August 23 and September 6, 2024. The survey included responses from 500 retail and supply chain logistics executives and 500 U.S. adult consumers, offering insights into their expectations for the 2024 holiday shopping period.

About Manhattan Associates

Manhattan Associates is a global leader in supply chain and omnichannel commerce technology. The company designs and delivers advanced cloud and on-premises solutions to help retailers and supply chain leaders optimize their operations and succeed in the omnichannel marketplace. For more information, visit www.manh.com.

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