Approximately one in five customers are intending to move their holiday shopping online, according to Coresight.
Revamped Roche:
Holiday season is looming, and it seems that a third of American shoppers are sweating bullets about their online purchases being late. Yet, paradoxically, a whopping 78.2% are anticipating buying gifts online this yuletide.
In-store shopping still holds a strong allure, with around 65.1% of holiday shoppers planning to bag their gifts from brick-and-mortar stores. Folks earning between $100k and $125k are driving the trend, with 74% intending to shop in-store this year, trailing closely by shoppers making between $50k and $74.9k with 69.6% planning to do the same.
Around 20% of consumers are mulling over moving parts of their spending from stores to online shopping, while 11.6% are eyeing a shift from e-commerce to stores.
The current quandary with supply chains has customers rushing to snag their holiday goods earlier, as per a Deloitte report. Another NPD Group study revealed that 58% of respondents are planning to hit the stores due to the accessibility of COVID-19 vaccines. A Forrester report forecasts 72% of retail sales to occur in-stores through 2024.
Consumers have been looking to utilize in-store pickup services as well, according to Coresight. Approximately 20% are planning to go for curbside pickup, and 17.9% are considering BOPIS to facilitate their online purchases.
While the coronavirus lingers, a growth in holiday sales is projected. Estimates from Wells Fargo analysts suggest an 11% increase in holiday sales compared to last year. The ICSC's Annual Holiday Shopping Intentions survey predicts a rise of 8.9% in holiday sales between November and December, amounting to $923 billion.
Amid pandemic-induced supply chain snarls, it seems that 2021's holiday shopping trends were all about flexibility and convenience, with consumers embracing a hybrid shopping experience that combined the best of both worlds—online browsing and in-store purchasing.
In the Rearview:
2021 holiday shopping was a dance between consumers' apprehensions over online delivery, supply chain bottlenecks, and the desire to get back to in-store shopping. Key shifts in consumer behavior and retail strategies included:
Trends in 2021 Holiday Shopping
- Supply Chain Challenges & Delivery Delays
- The pandemic-fueled supply chain disruptions shook up holiday shopping in 2021. Shoppers were wary of late deliveries, leading to early purchasing to avoid any potential hassles.
- The Return to Brick-and-Mortar Stores
- As COVID-19 restrictions eased, there was a discernible shift back to traditional shopping. Shoppers, drawn by the appeal of immediate product availability and the avoidance of shipping delays, opted for hybrid shopping experiences that combined online browsing with in-store purchases.
- The Persistence of Online Shopping
- Despite the return to physical stores, online shopping remained a significant piece of the holiday shopping pie. E-commerce saw steady growth, with increased flexibility and convenience for consumers driving the trend.
- Consumer Preferences
- Consumers became more conscious of early deals and discounts, aiming to counteract potential price hikes due to inflationary pressures. Additionally, the pandemic sparked a change in consumer preferences, with more people valuing experiential gifts and sustainable products.
- Retailer Strategies
- Retailers responded to the evolving consumer landscape by offering flexible fulfillment options like BOPIS. They also improved their online presences to cater to consumers' desire for an omnichannel experience and manage inventory more effectively.
In conclusion, the 2021 holiday shopping season was marked by resilience and agility in the face of the supply chain turmoil, with both consumers and retailers adapting to the new normal.
- Amidst the lingering coronavirus pandemic, AI research in predicting and mitigating delivery delays and supply chain bottlenecks has seen a significant update in 2021.
- As the holiday season approached, many tech enthusiasts researched equipment to enhance their home entertainment systems, with a surge in sales for televisions and gaming consoles.
- In light of the pandemic's impact on cultural events, bands and artists began releasing live stream performances and virtual concerts, attracting millions of viewers online.
- In the realm of fashion, sustainable materials gained traction as consumers showed a growing interest in health and environment-friendly alternatives, causing a shift in policy and business strategies.
- During the holiday shopping season, people came to realize the importance of cybersecurity, ensuring timely and secure transactions in their financial dealings.
- The weather played a crucial role in shaping shopping habits, as unpredictable and harsh weather conditions pushed more shoppers to opt for online shopping over in-store visits.
- As the vaccine rollout continued, legislators and policymakers worked together to update laws and regulations for businesses to protect employees and customers, following health and safety guidelines.
- In the world of stocks, the holiday season saw a surge in volatility, with investors closely monitoring policy shifts and economic indicators to make informed decisions.
- Lifestyle trends in 2021 were heavily influenced by the pandemic, as people began valuing personal well-being and self-care practices, leading to a spike in sales for holistic products and services.
- Lastly, shopping expanded beyond traditional and digital channels, as retailers leveraged emerging technology to create a seamless and immersive shopping experience that catered to shoppers' diverse preferences.
