CHERRY HILL, N.J., Oct. 27, 2021 /PRNewswire/ -- TD Bank,
America's Most Convenient Bank®, announced today that providing
financing options for major purchases can be a key driver of sales
for retailers, according to TD's latest Retail Experience Index, a
bi-annual survey that tracks purchasing habits, particularly when
it comes to big-ticket items.
The survey polled around 1,000 Americans who made a major
purchase in the last year, defined as spending $500 or more on a single item. It found that 70%
of consumers are likely to make a large purchase in the next six
months, and a third (31%) expect to spend more this holiday season
than they did last year.
This anticipated spending creates opportunities for retailers
with robust financing programs to capture market share. According
to the findings, one in five (21%) consumers said they financed
their most recent big purchase, and of this group, 92% said the
retailer's financing program was an important factor in proceeding
with the purchase.
Financing options influence purchasing decisions
The survey found that financing options are a significant
consideration when shopping for a major purchase. Nearly half (46%)
of consumers report they are more likely to purchase from retailers
who offer a variety of financing options, such as installment
loans, buy-now-pay-later solutions (BNPL) and store-branded credit
cards. Another 78% said the ability to finance affected the amount
they were willing to spend.
"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."
With more options available than ever, consumers are taking
advantage of both short and long-term financing:
- Nearly half (47%) of consumers said they have a store branded
credit card. Of this group, millennials are most likely to carry
three or more store cards and most frequently swipe those
- Meanwhile, 23% have used a point-of-sale installment loan, and
63% of survey respondents said they would be more comfortable using
an installment loan from a respected financial institution to
finance their purchase.
Decking the halls
For consumers who anticipate increasing spending during the 2021
holiday season, more than a third (34%) expect to increase spending
on updating and outfitting their house to host holiday
The survey also captured an overall surge in home improvement
spending sparked by the pandemic. Home-based products made up a
strong percentage of large purchases during the past year, with
electronics and music equipment (43%), home appliances (39%),
furniture (35%) and home improvement items (35%) as the top
spending categories among consumers surveyed.
Pandemic keeps some shoppers online
It's well understood among retailers that maintaining a strong
online presence is essential, and this became even more critical
during the pandemic. Eighty-one percent of consumers shifted a
portion or all of their shopping online during the pandemic, and
32% expect to do more of their shopping online moving forward.
Additionally, amid ongoing COVID-19 concerns, 44% of consumers
report trying to minimize their time in stores, and about half
(52%) said they would prefer to use contactless technologies to
place and finance purchases, rather than speaking with a
"The shopping experience is evolving, and retailers are tasked
with providing their customers with a fully integrated, cohesive
experience that easily translates from online to store," adds
Rittler. "Many retailers have invested in contactless financing,
virtual showrooms and robust online customer service to provide the
most seamless and safe experience possible across channels."
Getting your website right
A retailer's website also plays an important role in the
research phase by allowing shoppers to explore products and
financing options, even if they ultimately purchase in-store.
The survey found that a third (31%) of consumers said the
retailer's website was the biggest influence in their decision
making for their last major purchase. This marked the first time
the online channel overtook brick-and-mortar stores as most
influential in this question's responses. And 41% said they prefer
to browse and research products online and then purchase in-store
to minimize time spent in retail locations.
With these findings, delivery time has become increasingly
important as well. Ninety-one percent of consumers say that they're
more likely to purchase from a retailer who can deliver more
"As retailers navigate ongoing supply chain challenges, they
must anticipate customer demand and ensure their stock inventory is
consistent with online offerings," said Rittler.
The full report can be found here: TD Bank's Retail Experience
Maru Public Opinion conducted a survey September 3-10, 2021, among 1001 randomly
selected American adults (18+) who are Maru Springboard America
online panelists and who made a major purchase in the past 12
months. For comparison purposes, a probability sample of this size
has an estimated margin of error (which measures sampling
variability) of +/- 3.1%, 19 times out of 20. A study synopsis and
the detailed tables can be found at Maru Group Public Opinion US
About MARU Public Opinion
Maru Public Opinion is a division of the Maru Group, a
professional services firm dedicated to improving its clients'
business outcomes. It delivers its services through teams of
sector-specific research consultants specializing in the use of
Insight Community and Voice of Market technology.
About TD Bank, America's Most Convenient
TD Bank, America's Most Convenient Bank, is one of the 10
largest banks in the U.S., providing more than 9.6 million
customers with a full range of retail, small business and
commercial banking products and services at more than 1,100
convenient locations throughout the Northeast, Mid-Atlantic, Metro
D.C., the Carolinas and Florida.
In addition, TD Bank and its subsidiaries offer customized private
banking and wealth management services through TD
Wealth®, and vehicle financing and dealer commercial
services through TD Auto Finance. TD Bank is headquartered in
Cherry Hill, N.J. To learn more,
visit www.td.com/us. Find TD Bank on Facebook
at www.facebook.com/TDBank and on Twitter at
www.twitter.com/TDBank_US and www.twitter.com/TDNews_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more, visit
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SOURCE TD Bank