Have you started your Christmas shopping yet? Whether you are looking for men’s Christmas gifts or gifts for a lady, Covid has taught consumers to buy early, making the Christmas shopping period a lot longer than in previous non-pandemic years.
Despite most of us having nothing but time on our hands sitting inside during this lockdown period. For many, the answer is still likely no. Christmas shopping started earlier this year, reflecting trends from this unusual year.
Indeed, the Christmas shopping picture is likely to look a lot different in 2020, but what can we expect to see as the most prominent themes?
Online sales surge
You can’t shop in stores that aren’t open. As if the world of e-commerce needed any more encouragement in its progress to become the top shopping format, the complete shutdown of brick-and-mortar retail this past month. The intermittent restrictions placed on it throughout the year mean online sales will unsurprisingly dominate this year’s Christmas shopping.
As per Springboard, over the six weeks from Sunday 22nd November to Saturday 26th December, footfall across all UK retail destinations will be down 62% in comparison to 2019. In the worst hit areas, it will sink by 87%. On the flipside, online retail sales this Black Friday are expected to be up 35%-45% on last year’s figures in what could be a “permanent shift” in the retail landscape.
The numbers tell an unsurprising but significant story – that e-commerce will reign supreme over the period.
There will be delays
The impact of the pandemic and the accompanying restrictions on supply chain efforts has been monumental.
During the early lockdown, Amazon customers experienced month-long waits for in-demand products. Despite the usual Prime one-day delivery, amidst panic buying and other crises.
Polarizing supply and demand and limited logistics options have combined through this period to cause virtually every customer a longer-than-usual wait on some products. The problems around the recent next generation games console releases of the Xbox Series X and the PlayStation 5 attest to this.
It’s just one of the reasons many people have started shopping earlier this year. With stock issues and logistical limitations, no one wants to be disappointed this Christmas due to inevitable delays in service.
People Will Spend Less, or Will They
The early pandemic caused economic survival mode due to small business closures, widespread layoffs, and furlough uncertainties.
With these effects lingering and a subdued Christmas expected, people will likely spend less on gifts, questioning the need for presents when gatherings are limited.
Interestingly though, some numbers suggest differently. According to consumer data from American Express, UK shoppers are set to spend an average of £346 on Christmas this year as opposed to £312 in 2019, but why? Funnily enough, as the pandemic and lockdown conditions have progressed, many people have found themselves in more comfortable economic situations.
With many working from home, eating in and not going out and socialising. More disposable income is being made available to those in such situations. Which could play a factor in higher festive spending.
It could also come down to the type of presents people buy this year. Starved of human contact and simple pleasures, people will likely favor “experience” gifts like event tickets or holidays this year.
Such experiences, be it festival tickets or a weekend in London, tend to be higher ticket items, which could in turn drive up the average persons’ spend.
So, what do we know about shopping during a subdued Christmas 2020 period?
In general, we know that online sales will dominate. But people will need to be quick to avoid disappointment and delays.
Some people will spend less, but many may spend more, indulging in a bit of retail therapy to feel better.
What is yet to be seen, but likely to happen, is that 2020’s pandemic-inspired shopping traits. This may inspire a shift in the retail habits of the masses. And create a legacy that will reshape the world of both physical retail and e-commerce in 2021 and beyond.