It has been a challenging year for the retail industry. And with economic and healthcare uncertainty ongoing, overall holiday spend is expected to be lower this season, even as the share of ecommerce rises.
Accenture’s 14th Annual Holiday Shopping Survey of 1,500 US shoppers shows that two in every five shoppers plan to spend less than they did last holidays. It means retailers will need to be exceptionally thoughtful in how they win over a cautious and cost-conscious customer base.
Emphasizing their responsible side will also be vital to retailers. The 2020 survey shows that consumers want retailers to be authentic to their brand purpose and demonstrate sensitivity and care towards employees and communities.
"2020 is shaping up to be a very 'human' holiday season for consumers, with a desire to support the people who have served our communities. Now is the time for retailers to be authentic to their purpose and transparent about how they treat employees."
— JILL STANDISH, Senior Managing Director – Global Lead, Retail
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Consumers have seen the essential public service role retail workers have performed during the pandemic—and they’re watching carefully how retailers are treating them. Three in four consumers support retailers closing on Thanksgiving, with many citing the need to give workers a well-deserved day off to spend with their families, and three in five plan to minimize in-store shopping to reduce health risks to front-line workers.
76%
of consumers want retailers to close on Thanksgiving to give workers a day off or to spend the day with their families
61%
of consumers plan to minimize in-store shopping to reduce health risks to essential/retail workers
57%
of consumers would be inspired to shop with a retailer that supported their staff and customers during the crisis
41%
of consumers say they won’t shop with retailers that have laid off staff or reduced benefits because of the pandemic
Retailers need to stress test ecommerce supply chains
The ecommerce surge seen throughout the pandemic is almost certain to continue through the holidays—and quite possibly indefinitely. Three-quarters (75 percent) of consumers say they’ll do at least some of their holiday shopping online this year (up from 65 percent last year), meanwhile almost half (43 percent) plan to shop exclusively online.
"Retailers need to ensure their ecommerce capabilities are up to the task, with detailed visibility into demand changes and inventory—and a laser focus on seamless experiences and fulfillment efficiency."
— BROOKS KITCHEL, Managing Director – Accenture Strategy, Retail
Fulfillment to the home will be key to this. Over three-quarters of shoppers still want their purchases delivered directly to their homes, with just a fraction of shoppers willing to pick up in store, curbside or use contactless, such as a locker. And consumers’ patience, seen early in the pandemic, is waning. More than half of those surveyed (56 percent) said they won’t shop with a retailer again following an unsatisfactory delivery experience.
77%
of consumers want online purchases delivered to their home
56%
of consumers say they won’t shop with a retailer following an unsatisfactory delivery experience
On top of this, consumers have become accustomed in recent years to shopping online for the holidays right up to the eleventh hour. The race is on to ensure supply chains can meet this intense digital demand over the peak period. Getting consumers to shop earlier will be key. Three in ten say they’ll do so this year, but retailers need to encourage the rest to follow suit.
Retailers need to navigate with data
There’s no escaping the fact that COVID-19 has clouded the horizon for retailers. To guide the business through uncertainty, the right digital capabilities built on the cloud are now essential. Real time visibility into inventory, hyper-localized demand analytics based on machine learning, flexible and agile supply chains and fulfillment capabilities, for example, have quickly gone from future aspirations to vital requirements.
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