According to a recent consumer confidence survey, Nike and Kohl’s may not be faring well on Wall Street, but they remain favorites among consumers during this year’s holiday shopping season. The survey conducted by consulting firm AlixPartners examined the purchasing decisions of 9,000 fashion shoppers spanning from Gen Z to Baby Boomers, uncovering key factors that influence their choices and how retailers stack up against their competitors.
The findings revealed that Nike is regarded as the leading active footwear retailer, outpacing Adidas and Foot Locker, which tied for second place. However, newcomer On Running fell to the bottom of the rankings among Gen Z and Millennials.
When it comes to department store preferences, Kohl’s emerged as the top choice for both Gen Z and Baby Boomers, while Millennials preferred Nordstrom, and Generation X leaned towards Macy’s.
These consumer insights contrast sharply with the recent performance of Nike and Kohl’s. Nike is anticipating a sales decline of 8% to 10% this season. As of October 23, the company’s stock had dropped 26% this year, as investors brace for the lengthy recovery journey under the leadership of new CEO Elliott Hill.
Meanwhile, Kohl’s expects sales to decrease by 4% to 6% this fiscal year, as it grapples with broader issues affecting department stores striving to maintain their influence. The company’s stock has fallen by 32% this year to date.
The AlixPartners consumer confidence report highlights several crucial insights for retailers entering the increasingly vital holiday shopping season, including the primary reasons shoppers turn to competitors. Notably, 66% of consumers indicated they would shop elsewhere if the products they sought were out of stock.
The report emphasized the challenge of maintaining a seamless shopping experience, noting that “the right product, in the right place, at the right time” resonates in every retail boardroom, yet avoiding shopper frustration due to unavailable sizes becomes more complex as retailers expand their online offerings to attract new customers. For instance, among a sample of 30 retailers, only an average of 9% of items available online are also in stock at physical stores.
