Hardware Retailing The Industry's Source for Insights and Information
In a recent survey of 1,000 Americans who made a major purchase of $500 or more in the last year, TD Bank found that 70 percent of consumers are likely to make large purchases in the next six months. Nearly 31 percent expect to spend more this holiday season than they did last year, even in spite of continuing supply chain issues.
When making a large purchase, financing is key for these consumers, with 92 percent indicating a retailer’s financing program is an important factor in their purchasing decisions. Almost half of the respondents, 46 percent, said they would be more likely to make a purchase if a retailer had financing options such as store-branded credit cards, installment loans and buy now, pay later.
“Financing options are no longer viewed as a perk for shoppers when selecting a retailer for their next big purchase, but rather a key differentiator in where they buy these goods,” says Mike Rittler, head of retail card services at TD Bank. “As consumer preferences vary and evolve, it’s important for retailers to not only offer financing, but a variety of options to meet their customers’ individual needs, and ultimately increase repeat business.”
Home improvement items were one of the top spending categories for large purchases, making up 35 percent of overall purchases.
