Study: Supply Concerns Push Consumers to Shop Early
“The holiday shopping season has changed, but consumer-driven traditions – like taking pleasure in the quest for the perfect gift – will endure even amid pandemic-driven concerns,” said Marshal Cohen, chief retail industry advisor for NPD, in a recent media release. “Consumers will hold on to the core characteristics of holiday shopping that mean the most to them, even if the ways they are achieved need to evolve.”
“Once again, this year’s holiday shopping season will look different than past year’s, in terms of when and how purchases are made, as well as the types of gifts that are given,” Cohen said. “The here-and-now shopping mindset that consumers have adopted through the pandemic will continue to play out during the holidays, so manufacturers and retailers must be prepared to pivot along with shoppers.”
More than four in 10 U.S. consumer respondents said they had already purchased holiday gifts by October this year, and more than half plan to start shopping before Thanksgiving Day, according to The NPD Group’s annual holiday survey. Among those early holiday shoppers, 42% said they started shopping early because of concerns around availability or supply in stores. However, just as many said they made early purchases because they like to get their shopping done before the holiday rush.
The online survey was fielded to an online consumer panel of 3,664 in September to understand Americans’ holiday spending intentions this year.
Fewer than half of respondents said they do not expect to find a particular holiday gift that they are hoping to purchase this year. Of the respondents who are anticipating supply issues, many said they are willing to be flexible. Forty-three percent indicated they were prepared to buy alternative items, if they couldn’t find what they wanted, and another 13% said they would spend more on a product they are looking for when they find it, rather than wait or look for a better price.
Other notable survey results from NPD include:
- Consumers plan to spend an average of $785 on holiday shopping this year. That's higher than 2019 and a significant increase above 2020 planned spending, according to the company.
- 85%of respondents said they plan to shop online (up from 80% last year).
- 74% of consumers will shop both online and in stores (up from 70% last year), even though 58% of consumers feel more comfortable shopping in stores now that a vaccine is available.