However, the participants in the study choose retailers based on product quality (39%), price level (37%) and variety of products (35%). At the same time, consumers are prioritizing experiences (up 16 percentage points compared to 2023), like events, holiday activities and socializing with loved ones (including hosting parties at home - 25%), while gift spending is expected to decrease slightly (by 3 percentage points compared to the previous year), and decorations continue to gain in importance (up 9% compared to the previous year).
In terms of gifts, clothing and accessories lead buyers' preferences (although the allocated amount is down 10 percentage points), while gift cards decline (minus 12 percentage points compared to previous year), and four out of ten intend to offer experiential gifts.
"Increasing prices also worry Romanian consumers, as annual inflation remains high in our country, around 5%, compared to the European Union average of 2.3%, according to the latest Eurostat data. And official forecasts indicate that inflation will remain above the National Bank of Romania target for a longer period. Buyers' caution has a negative impact on consumption, a sector with a significant contribution to the economic growth in Romania. Under these conditions, in which consumers value lower prices over brand loyalty, retailers need to consider shoring up loyalty programs to attract and retain customers in their portfolio, but also to invest in omnichannel experiences (integrating multiple interaction channels, physical and virtual), so that customers benefit from great deals and convenience while shopping," said Raluca Baldea, Tax Partner, Deloitte Romania, and the leader of the retail and consumer goods industry.
More than 70% of consumers prefer online retailers because it helps them save time (74%) and money (60%), get product variety (68%) and availability (64%). On the other hand, in-store retailers (preferred by 55% of respondents), are appreciated for the opportunity to check product quality (63%), responsive customer service (62%) and enjoyment (52%).
Retail executives expect sales to increase this holiday season (80% of them), aided by anticipated traffic growth in both in-store and online channels. On the other hand, 76% of executives believe most consumers will value lower prices over brand loyalty.
The Deloitte 2024 Holiday Retail Survey was conducted among over 4,100 US consumers and 45 executives from retail companies, among which more than 90% have annual revenues of more than one billion dollars.
