SHOPSMART AUTOS – CUSTOMER INFORMATION – DECEMBER 5, 2020 – 1
The impact of COVID-19 on consumer buying behavior has been extensive and quick. Spending across most industries has decreased, purchases have shifted from in-store to digital channels, and public safety has become the priority for brands and consumers alike. As retailers prepare for the long haul of what we now call the “new normal,” the desire to win the upcoming holiday season is higher than ever before. To succeed, retailers must focus their efforts and investments on understanding and catering to consumers’ demands and behaviors. Come November, those who are still testing technology or channels will fall behind the pack. To set themselves apart, retailers need to roll with changing consumer behavior and, with in-store shopping making up a smaller portion of holiday shopping, enhance every digital touchpoint. Before we delve into the current customer and retail landscape, let’s take a trip down the memory lane and examine the challenges and triumphs retailers endured last season.2019 holiday shopping: Healthy, despite recession threat
Despite a late Thanksgiving and concerns about tariffs, consumers did not shy away from shopping during the 2019 holiday season. The U.S. economy’s strong employment numbers, high wages, and steady household incomes all lead to a healthy holiday season. In fact, according to the NRF, during 2019, holiday sales increased by 4.1% over the same period in 2018 to $730.2 billion. Although customers were doing their part to keep the economy moving, rumors in 2019 of a potential global recession prompted some to express caution when shopping. Yet, once January rolled around, the retail industry saw a nice bump in sales overall. This momentum was short-lived as the pandemic hit and caused a global recession. As a result, the average American consumer felt the strains of unemployment and economic uncertainty and became frugal with spending.
2020 looks different: COVID pushes shoppers online
Heightened fears of the pandemic, along with social distancing and continued lockdowns, have shifted shoppers’ preferences and pushed them online. In fact, at the onset of COVID-19, the products and categories consumers gravitated to drastically changed. A newly released buying behavior report noted that amid the pandemic, 1 in 3 customers reduced their spending on fashion, electronics, and home decor. Even as stores begin to reopen, the report data suggests 82% of shoppers plan to continue shopping online. The global health crisis has pushed unconventional social norms to the forefront and birthed an entirely new segment of first-time online shoppers, forcing them to adapt and assimilate new methods of shopping. To capitalize on the digital traction channels will receive this holiday season, retailers need to begin planning earlier than before. And, with 26% of respondents in the same report indicating that they plan to make substantial cuts this holiday season when shopping for gifts, the race to win consumers’ dollars has higher stakes than ever.
Tags: 2019 Subaru Forester Touring, 2020 BMW iX3, 2020 Chevrolet Suburban, 2020 dodge charger, 2020 EQC, 2020 Ford Super Duty, 2020 Honda Pilot, 2020 Kia Optima, 2020 Mercedes Benz, 2020 Nissan Versa, 2020 Subaru WRX STI, Audi SUV, BMW, Brandon K. Hardison, Chevrolet Car, Chevrolet Sonic, Dodge charger, electric vehicles, honda, Honda Pilot, Hyundai SUV, Mercedes Benz, Nissan Rogue, SUV, upcoming car, Volkswagen, Volkswagen Tiguan SEL Premium R-Line, Volvo Car
Trackback from your site.
