Many shoppers intend to start their holiday shopping ahead of schedule, according to a recent report.
In an optimistic outlook for the upcoming holiday season, the International Council of Shopping Centers (ICSC) has predicted a significant increase in retail sales, with consumers planning to spend more and adjust their shopping behaviours in response to economic and health considerations.
According to the ICSC Annual Holiday Shopping Intentions survey for 2021, consumers remain resilient and have returned to pre-pandemic shopping habits, despite ongoing uncertainty. Although specific dollar amounts or percentage increases were not detailed in the survey, it generally captures optimistic consumer attitudes towards holiday spending.
The survey revealed that the holiday shopping season will likely continue the trend of strong retail spending, with 78% of respondents planning to spend the same or more money this year than last year. This optimism is further bolstered by the fact that over 80% of shoppers consider deals as a factor in their holiday purchases.
The survey also indicated a shift towards hybrid shopping experiences, combining both online and in-person retail activities. More than 75% of respondents plan to shop earlier this year, with 45% wanting to ensure their desired items are available earlier. This trend reflects changes accelerated by the pandemic and the growth of e-commerce.
Retailers have been advised to focus on safety, quality of service, and targeted marketing to capitalise on these trends. In fact, 85% of respondents plan to shop in brick-and-mortar stores this year, indicating that physical retail spaces continue to play a crucial role in the holiday shopping experience.
Tom McGee, president and CEO of ICSC, expressed confidence in the economic recovery this year, stating that consumers have remained resilient throughout 2021. He believes that this resilience will continue during and after the holiday shopping season.
The ICSC predicts a 8.9% increase in holiday sales between November and December, totaling $923 billion compared to last year. Additionally, the report predicts a 13% increase in e-commerce sales due to the growing popularity of omnichannel options.
Retailers like Amazon and Target have already launched early holiday deals, with more than a third (38%) of respondents in the ICSC survey planning their shopping trips around specific promotional events. Furthermore, 42% of respondents want to access early holiday deals.
The holiday shopping season is expected to reflect the consumer resilience observed throughout 2021, as consumers continue to shop as they did before the pandemic, albeit with a focus on safety and convenience. The ICSC's findings suggest a cautiously optimistic outlook for holiday retail sales, with consumers planning to spend but also adjusting their behaviours in response to economic and health considerations.
- In alignment with the ICSC's predictions, AI-driven businesses might consider researching consumer behavior patterns during the holiday season to target personalized deals and offers that cater to shoppers' preference for deals.
- The surge in online shopping, as indicated by the ICSC survey, signifies a vital shift in consumer lifestyle, which may lead finance experts to assess and invest in strategies that strengthen e-commerce platforms to meet the growing demand.
- As the pandemic touches upon both business and lifestyle, retailers could take advantage of the hybrid shopping trend by providing seamless transitions from online to in-person experiences, considering that 75% of respondents plan to combine these shopping methods.
- When making their holiday purchases, consumers are showing a continued affinity for brick-and-mortar stores, with 85% of respondents planning to shop in physical retail spaces. Consequently, businesses might review their in-store ambience and safety measures to attract more customers during this peak shopping period.
