In this edition, we explore the growing challenges facing both consumers and retailers. Financial scams are on the rise, eroding consumer confidence and creating significant financial losses.
Meanwhile, a disconnect between analyst’s optimism and shoppers’ cautious spending plans this holiday season highlights the need for retailers to adapt their strategies as inflation continues to impact consumer behavior.
Today's Rundown
- Cost Effective: How some bands are lowering their customer acquisition costs.
- Social Breakthrough: TikTok shares insight into emerging in-app shopping trends.
- OUT NOW: Sign up to receive the Q3 2024 Home Furnishing Benchmark Report.
Trakwell Feature of the Week
This is where each week we highlight a feature within Trakwell. This week’s feature is: The Executive View
Imagine getting a daily overview of your foot traffic as it’s happening.
The Executive View is intended for managers to see a quick report of all the opportunities and sales made for each store. While the tab looks similar to the up-board, instead of showing photos of customers, it displays the breakdown of the sales vs opportunities.
Report: How Financial Scams Are Eroding Consumer Confidence and Financial Health
Financial scams are on the rise, yet reliable data on the number of victims and the extent of their losses remain scarce. Research from PYMNTS Intelligence reveals that 3 in 10 U.S. consumers or their households have been victims of a financial scam in the past five years, affecting around 77 million individuals. The financial impact can be severe, with most victims losing over $500, and some facing thousands of dollars in losses.
The emotional toll of financial scams further damages consumer confidence. As individuals face not only financial losses but also frustration in the recovery process, they may become hesitant to engage in certain financial transactions or adopt new technologies. For businesses, this creates a growing need to enhance fraud protection measures and rebuild consumer trust through proactive communication and support. Ultimately, the long-term effects of these scams can ripple across the retail and financial sectors, influencing consumer spending habits and overall market confidence.
The gap between retail marketers' confidence and consumers' holiday spending plans
Retail marketers are optimistic about hitting their sales goals this holiday season, despite shoppers showing less enthusiasm for spending. A survey from Rakuten found that 79% of marketers are confident in meeting their objectives, yet 81% of shoppers do not plan to increase their holiday spending, with 45% saying they intend to spend less than in previous years.
Inflation remains a key concern for shoppers, with 46% stating it will have the biggest influence on their holiday shopping plans, while only 20% of marketers share this view. Additionally, 26% of shoppers say they cannot afford to buy gifts this year, highlighting ongoing financial challenges. Many shoppers also expect inflation to rise, with 57% believing the upcoming election will contribute to an increase.
This disconnect between marketer expectations and consumer behavior presents an opportunity for retailers to differentiate themselves. As Julie Van Ullen, chief revenue officer at Rakuten Rewards, points out, with fewer overall spending opportunities, it’s crucial for retailers to invest in standout strategies. The survey also reveals that many marketers are delaying their spending until November, with 25% planning to focus their efforts around Black Friday and Cyber Week, potentially leaving early shoppers without the deals they expect.
Retail Snippets
Cost Effective: How some bands are lowering their customer acquisition costs.
Social Breakthrough: TikTok shares insight into emerging in-app shopping trends.
Spooky Trends: Consumer trends to watch this Halloween shopping season.
Random Irrelevance
Record Breaking: Largest ever rogue wave measured by scientists in the Pacific Ocean.
‘Everybody loves a skeleton’: The origin story of Home Depot’s giant decoration.
First Look: Neuralink brain implant wins an FDA nod to tackle blindness.
