Merchants everywhere are planning for a holiday shopping season reimagined in 2020, shaped almost entirely by the COVID-19 pandemic. Instead of the hum of crowds flurrying and bells ringing this season, expect the much softer sounds of clicks and taps coming from online shopping – which most industry experts say will be the go-to for holiday shopping this year.
COVID-19 has certainly been an accelerator behind retail digital transformation trends including the move to eCommerce and the growth of omnichannel customer experiences. Merchants and brands are now preparing not only for the uptick in demand of the holiday season, but with consumers that are thinking about their shopping experience differently. With that in mind, below are our top predictions to inform your holiday marketing, promotions and sales strategies.
1. Holiday shopping in 2020 will be ‘digital-first’
A recent USA Today article stated “stay-at-home orders, store closures, and financial concerns are just a few of the factors that are affecting holiday shopping this year.” As Americans continue to be wary of shopping in-person, merchants will need to prepare their digital presence and eCommerce sites accordingly. According to IBM, "2020 will be a digital-first shopping holiday,” projecting sales at non-store retailers to continue to accelerate, growing by 35% in November to December (vs. an increase of 24% during March to July)."
All retailers, from big box to small businesses, are getting ready for the move to e-commerce by evaluating their sites, ensuring stock is up-to-date, and hiring additional staff to support additional website traffic (and the questions that come along with it). And categories hit especially hard by the pandemic, such as apparel, are still expected to see e-commerce growth in 2020.
2. Pandemic trends will shape gift-giving
While experiential gifts such as travel, concerts and sports were on the uptick prior to COVID (especially in the Millennial and Gen Z categories), experts expect an increase in demand for products and tangible gifts this year. "We’ve already seen this happen over the recent Mother’s and Father’s Day holidays, where popular general merchandise categories saw sales lift for the week that was two and three times what it was in 2019," Marshal Cohen, Chief Industry Advisor of Retail at The NPD Group, said in a release.
As customer shopping habits have changed over the past six months, retailers like Walmart plan to increase the availability of holiday gifts that reflect lifestyles in the “new normal,” including athleisure, loungewear and sleepwear, outdoor grills, bicycles and exercise equipment and outdoor sporting equipment. Pets – which countless people have adopted since the pandemic--are also expected to draw increased spending, with Walmart expecting to sell over 3 million dog beds this holiday season.
3. Consumers will start their holiday shopping earlier than ever before
With store capacity limitations and social distancing rules, retail and customer experience expert Martin Newman predicts that shoppers will want to get a head start on their shopping to ensure they cross everything on their lists with time to spare. That being said, expect for holiday promotions to begin earlier than usual. Big box retailers including Target and Macy’s have already announced they will begin holiday promotions in October as shoppers continue to avoid crowds.
Options currently under discussion include limiting opening hours on Black Friday to help control crowds, especially in the wee hours when lines usually form. Adding security to enforce social distancing, mask-wearing and one-way aisles could also work. Given that many shoppers want a contactless experience, it’s also critical to enhance curbside pickup. And retailers could bring some products off the shelves and set up temporary displays under tents in their parking lots.
4. Shoppers will demand an omnichannel experience
COVID-19 has brought with it a new hybrid shopping experience. From fully online to curbside pick-up to in-store shopping to contactless payments, customers expect top service and their questions answered no matter which avenue they choose. This holiday season, some retailers plan to expand their footprints to allow for greater social distancing by setting up tents in their parking lots. With changes like these, it’s critical to communicate with customers ahead of time, so they know what to expect and where to go.
Teams should have mobile customer service and POS strategies in place so customers can check out quickly from any location and get their questions answered whether they are online, in their cars, at the store or socially distanced pop-up location. Prepare your customer service team for this move to hybrid and omnichannel by laying out clear expectations and guidance.
While this holiday season may be entirely unlike those before, the spirit of giving (and joy of getting) remains. To help your customers check everything off their list--without worrying about up-front spending--contact our Retail Team to learn more about how Afterpay helps shoppers spend on their terms at [email protected].
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