The cost-of-living crisis is continuing to drive people to seek out more bargains as they try to make their disposable income stretch further, according to a new report from EY.
However, while sales are growing in popularity, “there is a growing scepticism amongst consumers towards the real value of the discount or promotion on offer”, the report says.
Highlighting the continued squeeze on disposable incomes, 57 per cent of 13,000 consumers in countries including Ireland said they were planning to participate in sales because of their financial situation, but 64 per cent questioned the real value of the discounts.
The survey revealed that almost 45 per cent of consumers surveyed are concerned about being able to pay for this festive season, rising to 49 per cent of Gen Z consumers.
Globally, more than four in 10 said they would be using loans or credit cards to fund their spending and buy-now-pay-later solutions will be an increasingly important way of deferring shopping costs, both online and in store.
“Similar to the consumers surveyed globally, Irish shoppers are on the hunt for the best value when it comes to festive purchases,” said EY Ireland’s Colette Devey.
“To capitalise on this seasonal shopping period into the new year, it’s imperative that Irish businesses fine-tune their promotions to deliver the consumer’s perception of value for money. By offering promotions that are seen to deliver genuine value, companies will build brand loyalty with consumers long beyond this festive season.”
The research reveals that physical stores are still where most consumers globally plan to shop this festive season. Many consumers want to see, touch and physically experience a product before they commit to a purchase.
“As shoppers diversify the ways in which they make purchases, managing the complexity this creates for retailers requires a comprehensive view across all sales channels,” said Ms Devey. “It’s not enough to just have a presence in multiple sales channels; they must be integrated and work seamlessly together.”
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