This report excerpt is part of our monthly Remesh Live! series, where 100+ individuals participate in a Remesh conversation and share their thoughts on a range of topics from meal kit preferences to international healthcare, and more!
In September, we held a live conversation on this year’s holiday buying season where we ask 100+ consumers what they had to say about:
How they’ll utilize their 2020 holiday shopping budgets
Changes in their shopping needs, priorities, and expectations
Below, read about two key findings from that conversation.
Struggling economy and health concerns transform spending habits
As the US economy struggles to regain stability on top of ongoing concerns of health and safety due to the coronavirus pandemic, 42% of American shoppers have reported that they still expect to spend the same amount as last year on holiday shopping. On the contrary, about 36% of holiday shoppers anticipate spending less than the previous year, in response to the collateral consequences of stay-at-home orders, stores closing, and a multitude of personal finance concerns.
Many of the consumers who reported that they will be spending less this holiday season cited loss of earnings and in-store shopping hesitancy as a reason for spending less. On the other hand, 22% of American shoppers expect to see a surge in their spending habits for the holidays, despite the various socio-economic implications that the coronavirus pandemic presents.
After all things considered, it is expected that brick-and-mortar retailers and department stores will be navigating an uncertain holiday season, while the rise in digital shopping will likely see unprecedented growth – more so than the anticipated growth of online shopping, regardless of world events.
Consumers want social distancing-friendly gifts and products
American spending habits are not all that are changing as we continue into the holiday season. The struggling economy and ongoing health concerns in the wake of a global pandemic have also demonstrated a shift in the types of gifts consumers will be asking for. Electronic goods, for example, have been reported as the Christmas gift of preference in an attempt to make the home a more comfortable and livable space.
Consumers are seeking solutions to mitigate the inconveniences brought upon social distancing measures and the numerous economic impacts that have required Americans to dedicate more time spent at home. With more consumers seeking convenient solutions, there is a strong demand for gift cards, particularly those that can be redeemed at local and small businesses. Consumers noted that gift cards are easy to use and accessible, allowing faster online shopping experiences or reserved for a later time when in-person shopping is perceived as safer.
Without a doubt, the coronavirus pandemic and its ongoing consequences have dramatically reshaped the way American shoppers and major retailers will maneuver this holiday shopping season. These pivotal implications must be considered for both consumers and major retailers alike, demonstrating increased importance on obtaining both qualitative and quantitative insights on the needs, attitudes, and behaviors of shoppers.