While October may seem a little early for most to think about the holiday shopping
season, this time represents a critical period for retailers as inventory orders typically
need to be placed by now, and strategic thinking completed as to what consumers
will be looking for in 2020. But this year obviously presents a much more unique
challenge given the persistent influence of COVID-19 on consumer spending and
shopping habits, as well as the incredible importance of trying to recoup lost sales
from the stop, go, stop roller coaster of government shutdown and reopening
guidelines.
Even without COVID, it’s hard to understate the importance of holiday shopping for
mom and pop retail. According to the National Retail Federation, holiday sales
represent about 20 percent of annual retail sales each year, with some retailers like
hobby, toy, and games stores totaling 30 percent of sales. Of those sales, online
represented nearly 15 percent in 2019.
While none of us has a crystal ball to see into the future, it is most likely that what
we are observing today will be the conditions prevalent as the holiday season gets
into full swing. As such, there are some competing drivers surrounding holiday
shopping on our Main Streets. On one hand, there is a desire to have a traditional
holiday shopping experience. On the other hand, there is continued fear around the
virus, and consumers have gotten used to—and show an increased preference
for—convenient delivery and pick-up options.
Given the data and our previous look at COVID impacts on consumer and economic
trends, the 2020 holiday shopping season will look nothing like the traditional
experience-driven seasons of the past. As such, retailers AND place managers will
need to be even more creative as they seek to attract shoppers back.
Read more to find realistic suggestions on how to prepare for this “new normal” shopping season….
