Consumer Optimism Fuels the Post Thanksgiving Shopping Spirit
Friday, November 27th, 2020
As seasonal shoppers plan their holiday gift lists against the backdrop of CDC warnings of another COVID-19 surge, it’s only natural to wonder if this will be a record-breaking year for Cyber Monday. After a challenging year for small businesses, entrepreneurs surely hope that Small Business Saturday sees a resurgence thanks to the growth of “shop local” sentiment as well.
If the third quarter is any indication, shoppers are looking for a return to normal, with pent-up demand revealing longer term gains for retailers who have adapted to pandemic shopping behaviors that prioritize safety and convenience. Consider Target, whose curbside pickup service grew more than 500% in Q3, with average basket sizes up 15.6% in the quarter, translating to overall growth in traditional gift categories like electronics, home items, and apparel.
The good news is that the overwhelming majority of shoppers recognize safety precautions have been put in place and have confidence shopping in stores this holiday season. Another 47.7% are expecting home delivery for their gifts, with another nearly 15% planning on curbside pickup. No matter the method, shoppers are undoubtedly shopping across a variety of channels and will shift based on regional approach to the pandemic, requiring retailers and small businesses to be more nimble than ever before.
In spite of constrained budgets and an unemployment rate that looms higher than last year, American shoppers are resilient and eager to spend an estimated $1.15 trillion from November 2020 to January 2021. Whether you are a marketer developing programs against Cyber Monday, a small business arming up for Small Business Saturday, or even a local non-profit hoping to galvanize the community for Giving Tuesday, the key factors to success will remain the same:
(1) Make commerce easy – shoppers are increasingly looking for alternate forms of payment that are contactless, such as Paypal, Venmo, and ApplePay
(2) Make commerce convenient – shoppers are more anxious about timely deliveries this year after the supply chain challenges in 2020, so the more assured the arrival time is and the more seamless the return process, the more likely the transaction
(3) Make commerce safe – this looks different for different shoppers, so whether someone is seeking a physical experience with visible disinfection practices, designated appointment times to allow social distancing, or curbside pickup, provide the solution your shoppers are seeking
Contributed By: Nikki Jones, Group Strategy Director, Integer Dallas
Image Source: Unsplash