Before you think it’s not even Thanksgiving and we’re talking about Christmas, we would like to share some projections about celebrating the Holidays during this pandemic.
Shopping this year will definitely be different. Here are a few ways our shopping will change.
Remember when Black Friday started the shopping frenzy? This year our shopping started in mid-October. According to Coresight Research, 3 in 10 shoppers will start their shopping earlier than usual this year.
Staying safe during shopping is a factor in getting to the stores earlier. In an effort to lessen the impact on our wallets – some of which are already strained, shopping early also spreads out the holiday spending.
With the increasing cases of Corona virus and the impending flu season, consumers are doing their spending online. Estimates project e-commerce sales increase by up to 35% this year. Strong digital extras like intuitive mobile browsing, simple payment options, chatbots, and accurate personalized recommendation will put brands on top of their online spending list.
While consumers have come to expect shipping delays over the past months, the huge growth of online shopping and deliveries will put additional strain on delivery systems. Delivery companies are also hiring thousands of drivers and may increase their fees to cover additional costs of safety and cleaning.
Consumers should be aware of order deadlines and the deliveries may be delayed.
The economic uncertainty, job losses, and pay cuts could mean that some, not all, consumers will be spending less. In a recent report, McKinsey predicted a 25% net decrease in intended holiday spending.
Planned Purchases
Impacting spending choices are consumer willingness to buy to keep traditions alive and fewer people are traveling this year. One in 5 people surveyed said they typically travel for the holidays but will celebrate at home instead this year.
Shoppers also want to get into the spirit of the season. Shoppers plan to spend slightly more on holiday decor this year — a bright spot for retailers and a reflection of Americans’ focus on sprucing up their homes as they spend more time there.
While consumers will still be buying clothes and shoes, they will also be shopping for non-traditional gifts that build relationships. Topping the list are tablets for video chatting, gaming consoles and games, streaming subscriptions, and even future trips. Health and beauty items will allow people to pamper themselves at home.
As you can see shopping early and buying online are going to be a big part of the holidays this year. When you have questions about your insurance, we’re here with the answers. Call us.
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Sources: Forbes, CNBC, Retailmenot, Huffpost, Coresight Research, McKinsey