Big sales, big crowds, big profits–holiday shopping is big business. Strong sales in Q4 are a key factor for many stores to reach their annual goals and set them up for future growth.
Holiday shopping in 2022 will be anything but ordinary, just like everything else. Holiday shopping will change this year due to changes in customer preferences, economic conditions, and a global pandemic. To best serve customers and achieve success, retailers must make adjustments.
These are five changes that holiday shopping in 2022 will bring:
1 . The Shopping Season Will Begin Earlier
The official start of holiday shopping in most years is Black Friday. However, this year it has already started in mid-October. According to surveys, 3 out 10 shoppers will begin holiday shopping earlier this year than usual. Shopping early can help customers avoid being stuck in a crowded store in the middle of December. Retailers can be frustrated and costly by large last-minute crowds, so they encourage shoppers to shop early. The spread of holiday spending helps to lessen the impact on shoppers’ wallets which are already stretched this year.
Amazon Prime Day is usually held in July. However, it was moved to October this past year. This encouraged many other retailers to simultaneously sell. According to Salesforce, $6 Billion of retail spending which occurs in November’s Cyber Week could now be moved into October.
However, Holiday shoppers and brands are at risk of becoming burnt out due to the extra long season. Stores will need to be proactive in reviving customers through New offers and communication.
2 . The Sale Of Products Will Move Online
2020 holiday shopping season will be dominated by Online shopping, rather than doorbusters in stores. COVID-19 restrictions are still in place in many areas. This limits the store’s hours and capacity, and the impending flu season could increase the number of cases. Many consumers are still uncomfortable shopping in stores and prefer to shop online.
According to some estimates, holiday e-commerce sales could grow up to 35% in the coming year. Retailers are increasing their digital capabilities by implementing improved apps and online shopping experiences to meet this demand. Strong digital offerings such as intuitive mobile browsing, easy payment options, chatbots, and personalised recommendations will be a strong advantage for brands.
3 . Shipping Delays Are Expected
Online shopping and deliveries are expected to increase, adding more strain to the already struggling logistics and delivery systems. Shipping delays have been a common occurrence in the past six months. However, they could get worse in the final months of the year. Delivery companies have hired thousands of drivers to prepare for the holidays, but this could cause additional strain on an already fragile system. This is especially true as delivery companies raise their fees to cover safety and cleanliness costs.
Many retailers emphasise curbside pickup and BOPIS (buy online pick up in store) services to reduce shipping delays. Customers are more likely to shop at stores that allow them to pick up their items quickly, rather than waiting for delivery.
To avoid customer frustration, retailers need to be clear about the deadlines for pre-holiday orders and the fact that deliveries may take longer than usual.
4 . It Is Likely That Some Customers Will Spend Less
The biggest question surrounding holiday shopping is how much people will spend. Some shoppers might be spending less this holiday season due to economic uncertainty, as well as many people who are facing job loss or pay cuts. McKinsey predicted a 25% decrease in holiday shopping intentions.
However, another survey has shown that 66% of consumers plan to spend the same amount or more on holiday shopping this year. Consumers are more willing to spend money to preserve traditions in many cases. Consumers are willing to spend more in order to keep traditions alive, even if there are fewer holiday travellers.
What does this mean? There will be some variation in spending. While some consumers will want to maintain some level of normalcy, they will spend more on gifts than usual because of economic uncertainty, others will reduce their spending.
5 . The Popularity Of Non-Traditional Gifts Will Increase
People will look beyond the traditional stocking stuffers and gifts. Although retailers will continue to sell electronics and clothes, experts predict that people will be more inclined to buy non-traditional gifts that build relationships. Many consumers will gift games, streaming services subscriptions, and vouchers to future travel after spending more time at home. Consumers will be more inclined to treat themselves at home with beauty and health gifts. The pandemic is still very much in effect so consumers will spend more on home fitness equipment, comfortable clothes, and home decor to make the most out of their time at home.
