What's in Store for the 2020 US Holiday Shopping Season?
November 17, 2020
By Karl Haller, Partner, Consumer Center of Competency Leader at IBM That being said, from the early data IBM is seeing in consumer spending and retail sales, as well as looking at what consumers have told us with regard to their mindset, we are seeing some trends emerging.
Consumers will retrench somewhat
IBM’s latest holiday forecast is projecting a 1.8% increase in Nov.-Dec. retail sales vs. We expect sales trends to continue to be heavily weighted towards Essential retailers (home improvement, grocery, and mass discounters, and Ecommerce), which were able to remain open and operating during the COVID lockdowns and which, for many consumers, have become the habitual first-choice shopping destinations.
This trend is also reflected in results from IBM’s Institute for Business Value 2020 Holiday Shopping and Travel Trendssurvey, which indicated that consumers are scaling back on both holiday activities and on holiday spending.
Digital customer engagement will continue to reign supreme
IBM is projecting sales at Non-Store Retailers will continue to surge, growing by 30% (vs. And spending is projected to continue to be skewed toward big-ticket purchases for the home, as consumers continue to be reluctant to spend on–or participate in–experiences. Spending on services and experiences are projected to fall by 26% this holiday and over half of consumers do not plan to visit public entertainment venues until at least 2021.
Shopping patterns will continue to evolve
As shopping patterns continue to change, retailers need to be able to adapt quickly to the shifts. We also expect continued pressure on shipping, as more packages flow through the system this holiday season.
Lastly, as it often does, the weather will play a factor in how the holiday pans out for retailers. last year) for the balance of the holiday season. The shifts in temperature not only impact when consumers purchase items, but also what they shop for and how they shop. A switch to even cooler temperatures is yet another factor for retailers to consider as they try to capture a share of shoppers’ spend.
Feb 07, 2021 at 09:28