In 2020, here's why it's important to shop early this holiday season
Preparation and patience will continue to be key this year
This is the most unique holiday shopping season on record.
In a year where we all need a little Hannukah and Christmas cheer, it will be a challenge for retailers to spark joy in the traditional sense of extravagant displays, falling snow, mall Santas, cheerful music, cookies and eggnog. Instead, they will be focused on creating festive online experiences and optimizing supply chain efficiency.
There is a growing importance on shopping early – both for efficiency’s sake and uncertainty’s sake.
The big three retailers; Walmart, Amazon, and Target all started seasonal deals in early October, over a month prior to traditional Black Friday discounts. This was driven by the relative consumer predictability of the following 3-4 weeks as compared to the anticipated uncertainty of election week and beyond.
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Additionally, the previous availability of federally subsidized unemployment assistance stabilized many American’s incomes, thereby enhancing the inclination to spend.
Economic recovery, however, is losing steam in light of the re-introduction of restrictions and non-resolution of further stimulus negotiations.
Consumer spending has started to show some weakness, as evidenced by the marginal 0.3% retail sales growth in October. Spending on vehicles, electronics, grocery, and home improvement carried the indicator while that on clothing and restaurants pulled it down.
With the ongoing COVID-19 pandemic still in play, stress on distribution centers and last-mile shipping continues.
Amazon is hiring 100,000 seasonal workers to expedite its delivery service, Macy’s is hiring 25,000 to staff its fulfillment centers, and UPS is hiring 100,000 to help distribute the increase in packages it expects through the season.
Despite all this preparation, delays are expected and it is important to plan ahead to mitigate potential problems.
Some things to keep top-of-mind:
Shop early. Yes, you have heard this already, but it is worth repeating. Those expedited shipping charges are a doozie.
Take advantage of in-store or curbside pickup. Not only is it efficient but it eliminates porch piracy and saves your wallet from impulse purchases.
Target is the leader here but look for Walmart pop-up distribution centers as well.
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Batch online orders. At present, the average order size is predicted to stay consistent from holiday seasons’ past, however, we are expected to make more of them.
Factor in a new run on basic household goods and the supply chain with be stretched to its limit. By batching your orders and checking out once with each retailer, you are doing your part to keep things running as smoothly as possible.
Shop local. The people who have been hurt hardest during this pandemic are our neighbors, the small business owners who have had to close their doors while the big guys stayed open.
As much as possible, choose to shop in your community this holiday season.
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Use interest-free BNPL options (with caution). Klarna, AfterPay, and Quadpay are buy now, pay later financing tools that have been making huge strides with millennial shoppers in 2020. These payment options are available at checkout on many major websites and divide your payments equally over four months, with no interest charges.
They are an excellent alternative to traditional credit cards, however, if you miss a payment the penalties are hefty, so use with caution.
Get your returns out often. More online orders mean more mail-in returns.
As with the rest of 2020, this holiday season is unpredictable. Preparation and patience will continue to be key.
Keep the Christmas spirit in your heart and remember that the season is based on the joy of giving to others and showing our appreciation to those we love.
Don’t let the stress of shopping overburden what really matters.
Erin Sykes is a retail and sales strategist, consultant and former QVC Guest Host. She began her career with Estee Lauder, working extensively within international markets, notably Asia and Latin America and later served as CMO of AEDIT, Vice President of Sykes Commercial Development, and Founder of Mission 360. Follow Erin @sykesstyle on social media.