Heyo! Let's break down the holiday shopping stats this year.
Shoppers' numbers during Thanksgiving weekend drop for the second consecutive year, according to the National Retail Federation
For the second year in a row, the number of shoppers shopping online or in-store between Thanksgiving Day and Cyber Monday took a nosedive, dropping from 186.4 million last year to 179.8 million this year, according to a new report from the National Retail Federation and Prosper Insights & Analytics.
It looks like the top gift categories this year were clothing and accessories (51%), toys (32%), gift cards and certificates (28%), entertainment (27%), and electronics (24%).
Interesting fact: Almost half of the survey respondents (49%) made some holiday purchases before Thanksgiving this year, and 82% of respondents said they perceived this year's deals as either the same or better than last year.
Consumers shelled out $301.27 on holiday purchases this year, but that's down from $311.75 last year. The National Retail Federation still anticipates that holiday sales will increase between 8.5% and 10.5% from Nov. 1 to Dec. 31 compared to 2020.
What's the deal with this year's holiday shopping?
Well, the COVID-19 pandemic continues to throw a wrench into the holiday season, with retailers trying hard to manage crowds and, this year, the chaos we've seen within supply chains. Shoppers over the Thanksgiving weekend last year already saw a dip compared to 2019 and spent less as well that year. In 2020, 186.4 million people shopped the weekend, down from 189.6 million in 2019, though still above 2018 levels.
Matthew Shay, the NRF's President and CEO, pointed out that consumers have been moving their purchases earlier in the holiday season, a trend that seems to be sticking around.
"Retailers have cooked up some amazing incentives to keep customers interested throughout November. Sure, the Thanksgiving holiday weekend is still a big deal for families to check off their holiday shopping lists. But over the last few years, consumers have shown a preference for starting their shopping earlier in the season," Shay noted.
As for the discounts, they might not have been as eye-catching as shoppers expected, but research suggests that some retailers' holiday deals actually declined this year compared to last year. A Salesforce report noted a 7% drop in the average discount, while Kearney found that Nordstrom and Foot Locker weren't as promotional this year and Macy's, Gap, and Madewell offered more affordable deals to shoppers.
The results for Cyber Monday are a bit mixed, with Adobe Analytics reporting a 1.4% drop in Cyber Monday sales to $10.7 billion compared to last year, but Mastercard and Salesforce seeing increases for the online shopping day.
In summary, the number of holiday shoppers has declined for the second year in a row due to the ongoing disruptions and changing shopping behaviors brought about by the pandemic. But, there's been a shift in how people shop, favoring online purchasing, extended sales periods, and evolving retailer strategies that have kept overall holiday sales pretty stable, with no shortage of deals to snag!
[References][1] National Retail Federation and Prosper Insights & Analytics report - 2021 Holiday Shopping Season[3] Adobe Analytics - Cyber Monday 2021 Results
- The decrease in shoppers during the Thanksgiving weekend this year, as seen in the National Retail Federation and Prosper Insights & Analytics report, mirrors the trend from last year, indicating a potential impact of the pandemic on the holiday shopping industry.
- Despite the dip in shopper numbers, the holiday shopping season is far from a grim picture as consumers are still interested in entertainment (27%) and electronics (24%), suggesting that the entertainment and tech sectors may significantly contribute to the industry's finance.
- Interestingly, the pandemic seems to have broadened the retail landscape, with many consumers opting for earlier shopping, possibly marking a shift in consumer habits that could lead to changes in business operations and shopping patterns post-pandemic.
- Beneath the surface of seasonal sales, there appears to be a retail industry-wide move towards more subtle discounts, as indicated by a 7% drop in average discounts, according to a Salesforce report. However, this shift may not have negatively affected the shopping experience due to retailers' adoption of extended sales periods and attractive deals.
- The retailing sector's response to the pandemic merely serves as a case study for the ongoing influence of AI and data analysis in the industry, as retailers carefully evaluate shopping trends, adjust pricing strategies, and restructure business models to cater to the ever-changing lifestyle preferences of consumers.
