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Shoppers are anxious about heading to stores, with many planning to have purchases delivered
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Holiday spending per U.S. household is expected to fall this year by 7% to $1,387, according to the latest data from Deloitte.
Experts forecast a decline despite the state of consumer finances. A majority of consumers, 71%, are in a similar or better financial situation than last year.
Still, 29% say their finances are in worse shape compared with 2019, and 38% say they plan to spend less this year, “a level not seen since the Great Recession,” Deloitte says.
Deloitte surveyed more than 4,000 U.S. consumers online in September for this year’s holiday report. Deloitte has conducted its holiday retail survey for 35 years.
Many retailers have already begun to roll out their holiday plans and promotions, one of the earliest ever starts to the shopping season. With COVID-19 changing consumer shopping habits and causing economic concern, retailers are making a play for as many sales as possible.
Read: Lowe’s bulks up on fitness brands heading into the holidays
Lowe’s Cos. LOW, -0.61%, Walmart Inc. WMT, +0.41% and Target Corp. TGT, -0.52% are just some of the large companies that are launching their holiday season efforts, with plans to extend them until November.
While shoppers may balk about the “Christmas creep,” the extra time might come in handy.
More than half of the shoppers (51%) have anxieties about visiting stores, according to Deloitte data. Nearly three-quarters (73%) plan to have items delivered. To that end, 60% of shoppers say they plan to take advantage of free shipping or delivery options.
Moreover, shoppers plan to get it all done more quickly this year compared with years past, wrapping up their holiday shopping in 5.9 weeks. That’s 1.5 weeks less than last year.
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“This holiday season is going to test even the best supply chains and logistics,” said Stephen Rogers, executive director, Deloitte Insights Consumer Industry Center.
“Retailers who successfully address last mile requirements this season will like what they find in their own holiday stocking.”
Despite the challenges, there is a silver lining for retailers.
“As travel spend declines, retailers will likely benefit, and should receive a higher percentage of total holiday spend,” said Rod Sides, U.S. retail, wholesale and distribution leader for Deloitte LLP.
“The key for retailers is to stay flexible and offer options that appeal to consumers’ changing behaviors and address their evolving needs. Those that do will likely be better positioned for a bright holiday season.”
The Amplify Online Retail ETF IBUY, -1.94% has gained more than 85% for the year to date, while the SPDR S&P Retail ETF XRT, -0.39% is up 16.2% and the benchmark Dow Jones Industrial Average DJIA, -0.19% is down 1% for the period.
