5 things retailers need to know about holiday shopping in 2020
Take a look at the market research companies' predictions and advice for retailers during this incredibly unusual holiday shopping season.
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Software company Oracle Retail reported that 20% of its survey respondents said they plan to shop in stores, while another 47% will split their shopping between online and brick and mortar stores. Morning Consult found that a vast majority of adults are concerned about "dealing with people, including other shoppers, who aren't taking COVID-19 as seriously," with 77% of adults who plan to do most of their shopping online and 71% of all adults citing this as their biggest health- and safety-related concern. The same shoppers' second biggest concern is being around or being too close to people in stores. Of the adults who plan to do most of their holiday shopping online, 76% said they worried about this; 70% of all adults had the same response. What retailers can do: Consumers want to see retail employees wearing masks and gloves, and wiping down equipment, according to Bluedot. They also don't want to wait in lines: Almost 75% want to be in and out of the store in less than 10 minutes. Nutrition Business Journal revealed in its Immune Health Special Report that health- and natural-foods consumers plan to shop online this fall and winter more than they did in the spring; cook at home more; and use supplements to boost their own and their family’s immunity. Those health-food consumers who plan to stock up on groceries and wipe them down at home are likely paying special attention to retailers’ sanitation measures, New Hope Network NEXT Data found. Curbside pickup will be particularly important this season: Bluedot found that about 22% of consumers plan to use curbside pickup for 75% or more of their holiday shopping. However, nearly 40% of consumers who earn more than $100,000 plan to use curbside pickup. More than 60% of consumers want automated check-in so their purchases can be brought to their cars. If your store doesn't have an app, or if your app doesn't have this feature, text options are available, Bluedot reported. Deloitte's findings were similar—it noted that demand for curbside pickup already is twice what it was a year ago—but it also reported that 73% of consumers plan to have items delivered.
When determining how many consumers will spend less on holiday gifts this year, marketing firms' figures varied from 32% to 39%—decreases comparable with the Great Recession that started in 2008. Deloitte found that shoppers plan to spend $1,387 per household, a 7% decrease from a year ago. Morning Consult reported that the number of adults who plan to spend $300 or less on gifts rose 9 percentage points. Shoppers will reduce their holiday spending on friends and coworkers more than 20%, but only slightly decrease (2% to 5%) what they spend on family members such as parents, children and significant others, according to KPMG, the professional services firm. What retailers can do: Highlight new and innovative brands. Slightly more than half of Morning Consult's respondents said they plan to explore new brands when they shop this year. Offer practical gifts. More than 70% of consumers expect they will spend less—or nothing—than they did last year on premium or luxury gifts. Retailers have an opportunity to grab more sales, however, as shoppers turn to products instead of services—spa days, trips or tickets to sporting events or concerts—because of COVID-19. Last year, consumers spent about $450 billion on such services, according to Coresight. Later in the shopping season, retailers might see shopping spike as traditional delivery services get bogged down with online orders. Salesforce, a software platform that connects companies to customers, expects traditional delivery companies such as FedEx, UPS and DHL to exceed shipping capacity between Thanksgiving and Christmas—putting 700 million gifts worldwide at risk of not being under the Christmas tree, CNBC reported.
Deloitte reported that 62% of shoppers plan to purchase gifts online to avoid crowds, because it's convenient and to take advantage of free shipping or delivery. Morning Consult's survey had similar results, with 31% planning to shop both online and in stores; 27% planning to do most of their shopping in stores. What retailers can do: Savanta found that 48% of consumers plan to shop at a standalone store and 45% from small businesses, either in person or online. Morning Consult reported that this year's most popular gift will be gift cards, with 48% planning to buy them. The next most-popular gift type is apparel, which 9% of consumers plan to spend the most money on. Advertise new brands on social media to capture shoppers' attention. Oracle Retail said most shoppers discovered new brands on Facebook (65%), Instagram (53%) and YouTube (49%).
Fear And Shopping: It’s Going To Be An E-Commerce Christmas
Only 12% of consumers plan to shop in-store on the day after Thanksgiving, according to Victoria Sakal, managing director of Brand Intelligence at Morning Consult. Marketplace platform Tophatter reported that 16.3% of survey respondents who usually shop on Black Friday will not do so this year. Turns out, 54% of respondents said they rarely or never go shopping on Black Friday. COVID-19 plays a big part in this change, Sakal wrote: Consumers want to avoid gifts being out of stock or delivery delays; they want to avoid crowds to stay healthy; and they are more comfortable with online shopping events such as Cyber Monday and Cyber Week. Deloitte's research backs up Sakal's claim. The company found that 61% of consumers plan to start shopping before Thanksgiving—and those shoppers will spend an average of $1,537 per household, compared to $1,149 per household for the 39% that will start shopping on or after Thanksgiving. What retailers can do: Use online advertising to explain how you are keeping shoppers safe and provide gift ideas. Morning Consult found that about one-third of consumers are more likely to buy from companies with this information in their advertising. Make sure your prices are competitive. "A great deal" is relevant to 61% of consumers when they seek a retailer, according to Deloitte.
This won't be the year for large holiday gatherings. Consumers who shop at local or independent health food stores and those who shop at natural retail chains were most likely to say they will share Thanksgiving with one to four people. However, 67% of those who shop at local and independent natural food stores plan to make these holidays “more special,” as do 61% of natural retail chain shoppers, New Hope Network NEXT Data found. Even Sam's Club has downsized its holiday food offerings, with hams offered in 4 pound, 7 pounds and 10 pounds; side dishes packaged for four people; and a dozen rolls, instead of three dozen, per pack, according to CNBC. Morning Consult found that 47% of respondents had already canceled their usual holiday gatherings, the company reported in September. Market research firm AMCGlobal asked 300 people about their plans to celebrate the holidays. Not surprisingly, fewer people will be hosting or attending gatherings, dinners or parties, particularly compared to last year: What retailers can do: Since consumers won't be traveling to spend the holidays with family, they plan to spend $435, a 12% increase over 2019, celebrating at home. They expect to indulge in food and beverages. But instead of offering party trays, follow the lead of Sam's Club and offer smaller servings of appetizers, side dishes and main dishes.
This won't be the year for large holiday gatherings. Consumers who shop at local or independent health food stores and those who shop at natural retail chains were most likely to say they will share Thanksgiving with one to four people. However, 67% of those who shop at local and independent natural food stores plan to make these holidays “more special,” as do 61% of natural retail chain shoppers, New Hope Network NEXT Data found. Even Sam's Club has downsized its holiday food offerings, with hams offered in 4 pound, 7 pounds and 10 pounds; side dishes packaged for four people; and a dozen rolls, instead of three dozen, per pack, according to CNBC. Morning Consult found that 47% of respondents had already canceled their usual holiday gatherings, the company reported in September. Market research firm AMCGlobal asked 300 people about their plans to celebrate the holidays. Not surprisingly, fewer people will be hosting or attending gatherings, dinners or parties, particularly compared to last year: What retailers can do: Since consumers won't be traveling to spend the holidays with family, they plan to spend $435, a 12% increase over 2019, celebrating at home. They expect to indulge in food and beverages. But instead of offering party trays, follow the lead of Sam's Club and offer smaller servings of appetizers, side dishes and main dishes.
This holiday shopping season—like everything else in 2020—is going to be (fill in your own overused adjective here). But it doesn't have to be dismal, ghastly or horrible.
Many consumers plan to spend less on gifts, but some will have the means to spend more. Family gatherings likely will be smaller, but that could mean every family will be cooking main entrees and side dishes. Some might even try their hands at making pie crust from scratch.
As we approach the holidays, one aspect is absolutely the same as always: Market research companies are trying their best to predict who will shop, what they will spend and how retailers can make the most of every opportunity.
So instead of getting a head start on holiday baking, we gathered much of that research, mixed it all together, rolled it and cut out these five tasty treats for natural retailers to munch on.
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