Deloitte’s InSightIQ team analyzed consumer spending data from the first three weeks of October to better understand consumer behavior and help shine a light on how consumers are making their holiday purchases this year.
Key findings from the “Retail Insights for Holiday 2020: October Pulse,” report released recently include:
• Prime for the Win: Online sales surged during the week of Oct. 11, driven by Amazon Prime Day and other retail promotions, recording a 50% increase in online sales, year over year.
• Santa’s Merry Sale: Major promotional events, including Prime Day, resulted in a 6% year-over-year spending increase, across in-store and online. Not only did spending increase, but so did the number of people visiting retailers’ digital sites. During the third week in October, visits increased 63% year over year, and the number of unique visitors increased 47%.
• The Internet Sparks Joy: Online purchases are continuing to increase year over year, with the pandemic only heightening the trend. Online sales during the first and second week of October were up 25% and 24% respectively.
• The North Pole—A One-Stop-Shop: Traditional and online-only mass merchants will likely win this holiday season; throughout the first three weeks of October 2020 consumer spending at these stores was up between 10% and 30%.
“The InSightIQ analysis confirms that retailers’ strategy to accelerate holiday shopping was successful,” says Jeff Simpson, leader, InSightIQ, and principal, Deloitte Consulting LLP. “During Prime Week, major retailers’ online promotions drove the share of digital shopping even higher and helped jump-start the shopping season this year as shoppers purchased items traditionally associated with the holiday season, including toys, games, electronics and sporting goods.”
Rod Sides, vice chairman, Deloitte LLP, and U.S. retail, wholesale and distribution leader, also noted that not only are this year’s consumers spending more time at home, they are shopping from home as well.
“As the Prime week insights show, consumers continue to value savings and convenience,” he says. “Additionally, consumers are cutting back on the numbers of stores they visit, both virtually or in-person, making mass merchants the most appealing holiday shop.”
Sides concludes that to win this holiday season, retailers should offer a variety of goods at an exceptional value, as well as discounted or free shipping, free return shipping and services like buy online and pick-up in store (BOPIS) to appeal to a range of shoppers.
About the Author
Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]