Holiday shopping this year is likely to look very different. Many retailers around the world shifted online when the pandemic hit in March. Major eCommerce companies like Amazon benefitted from this boost in online activity. This trend will likely follow us to the lucrative festive season. Many companies have been making the necessary changes but it is clear there will be major challenges. Although Christmas is still a few weeks away we are already in the holiday season. As online sales have increased, retailers have started promoting holiday sales earlier than before.
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Industry experts believe this trend of early shopping seems to be here to stay. Texas based RetailMeNot found 75% of Americans customers prefer to do holiday shopping online. With the pandemic still spreading and many countries already in a second wave this is understandable. However, with high unemployment and low GDP globally, this holiday season will likely be more subdued. Thanksgiving Day festivities were reduced in Canada this year and we can expect the same from the US. Though there will still be in-store sales the day after Thanksgiving.
Many retailers are steering shoppers to their websites to try as best as possible to mitigate COVID restrictions. In Quebec, the government is discouraging a “small Christmas”. This is particularly for social distancing reasons. Regardless, this is going to affect the buying patterns of digital customers.
New holiday season
The holiday shopping season starts earlier but does not end earlier. The elongated holiday shopping season does have its effects. Global supply chain is going to feel the brunt of these changes and logistics companies will be tested. Especially as the winter months take effect in the Northern hemisphere. According to WorldSync, supply chain networks like FedEx and UPS have been overwhelmed with demand.
A longer holiday season gives supply chain networks more time to recoup and get back to normal operations. This also makes retailers better equipped to address supply shortages. Due in part to more precise demand planning and forecasting. Investments in effective technologies are bearing fruits for some retailers. They can share their requirements in real-time with suppliers which provides added agility and flexibility during a hectic season.