Navigating the 2020 Holiday Shopping Season 

In a year sprinkled with uncertainty and challenges due to the COVID-19 pandemic, it comes as no surprise that the upcoming holiday shopping season will be impacted. Consumer outlook and shopping trends will be different than those seen in previous years. CPG brands, like many others, should adapt their strategies to find seasonal sales success.  

CONSUMER SENTIMENTS

COVID-19 has facilitated a change in consumer shopping behavior. Many consumers are still experiencing anxieties about shopping in stores and being in crowds. Recent research indicates 51% of consumers are anxious about shopping in-store during the holiday season. These anxieties have driven a decrease in time spent shopping in stores and an increase in the use of convenient online options. Additionally, 65% of consumers prefer to shop online to avoid crowds.  Taking steps to help lessen anxious feelings and limit time spent in stores can help your brand be more appealing to more consumers this holiday season.  

SPENDING EXPECTED TO DROP

With many consumers facing economic uncertainty, we expect consumers to spend less overall. Job loss, pay cuts, or feelings of instability have resulted in the experts anticipating a 7% spending drop compared to holiday shopping in 2019.  

WHAT CONSUMERS ARE GIFTING 

While we expect to see retailers selling large amounts of electronics, clothes, and shoes, we also predict an increase in non-traditional purchases. Consumers will seek gifts that will build relationships and bring them closer to family and friends, such as games, tablets for virtual meetings, subscriptions to streaming services, or vouchers for future travel plans.  

Consumers looking to exchange useful gifts this year will most likely purchase at-home fitness equipment, home office supplies, home décor, comfortable clothing, and beauty products.  

SHOPPING TO START EARLY

The holiday shopping season, which usually starts with Black Friday, began earlier this year. Several retailers, including Amazon, Target, and Walmart, all hosted events in October offering deals and discounts to shoppers. Amazon hosted Prime Day on October 13th and 14th, Target hosted Deal Days during the same timeframe, and Walmart hosted Big Save from October 11th through October 15th.  

Consumers are not waiting for major Thanksgiving or Christmas sales this year: 47% of shoppers have already started purchasing holiday gifts online. Additionally, almost 70% of consumers are likely to buy products now instead of waiting for special discount days.  

ONLINE SHOPPING EXPECTED TO PREVAIL

In lieu of in-store deals and doorbusters, the 2020 holiday shopping season will feature online shopping deals such as flash sales, exclusive offers, and free shipping. When asked about online shopping this holiday season, 71% of adults indicated they plan to do more than half of their shopping digitally.  With consumers steering clear from retailers and in-person shopping, direct-to-consumer brands will have opportunities to snag a larger piece of the holiday sales pie. 

Many retailers still have restrictions in place to limit store capacity and hours. With these restrictions and consumer discomfort about in-store shopping, we expect to see an increase in online shopping. Some estimates suggest holiday e-commerce sales will grow by about 35% in 2020.  

Ensuring easy and affordable delivery is available for your products will encourage consumers to select your brand time and time again.  

WRAPPING UP

As with many things in 2020, holiday shopping this year will be anything but typical. With changes influenced by a global pandemic, consumer preferences, and economic situations, holiday shopping will favor digital and online options over in–store shopping. Knowing how consumers are expected to shop this holiday season, make sure your brand pivots into strategies that will maximize your holiday sales.