Consumers to Reinvent 2020 Holiday Season with Smaller Gatherings and Digital Gift-Giving
November 09 2020 - 8:44AM
The 2020 holiday season is fast approaching, and this year, brands,
retailers and consumers are preparing for major changes related to
holiday celebrations, spending and gifting, according to “The 2020
Challenge: Keeping Spirits Bright This Holiday Season,” a new
report by Advantage Sales, a division of Advantage Solutions.
Nearly nine in 10 consumers cited that COVID-19 has impacted
their holiday plans, according to the report, which is based on the
responses of 1,027 adults, each of whom typically participates in
at least one of the major winter holidays, including Black Friday
and Cyber Monday. Participant responses were fielded between
September 16 and September 22, 2020 by Advantage Sales’
SMARTeam.
“Communities across the nation are seeing a holiday season like
never before,” said Kimberly Senter, executive vice president,
analytics, insights and intelligence at Advantage Sales. “As the
winter holidays are projected to be impacted by changes in consumer
demand and sentiment, Advantage’s research outlines where retailers
and brands can find new ways to bring the holiday spirit to
Americans who are, more than ever, craving connection.”
Holiday Plans Change Due to Financial
Constraints
Consumers are planning to turn to e-commerce alternatives for
holiday shopping vs. brick-and-mortar locations as concerns over
safety and economic stress caused by the COVID-19 pandemic affect
holiday spending plans. Nearly four in 10 households said their
finances were worse because of the pandemic, and of this group, 30%
plan to buy cheaper brands, compared to 21% of the total
respondents.
While 35% of consumers expect to attend fewer celebrations
overall this year, households that have been financially impacted
by the pandemic show outsized declines in holiday participation
with an outlook generally more negative than the average. Overall,
Thanksgiving is projected to experience the steepest decline in
participation, with a roughly 30-percentage-point drop.
Thanksgiving, coupled with New Year’s Eve (27-point decrease),
Christmas (23-point decrease) and Black Friday (18-point decrease),
total the top four hardest-hit holidays amid the 2020 season.
Reinventing Smaller Gatherings
For consumers who are planning to celebrate the holidays, 40%
are planning to attend smaller, more intimate gatherings. This
change in gatherings signals the need for brands to adjust to
people buying smaller-sized holiday dishes with a range of
traditional and nontraditional foods. Prepared meal kits, smaller
turkey and ham meals, and personal-size pies and desserts should be
in high demand throughout the season.
Digital Shopping to Rise in 2020
More holiday shopping is expected to shift online this year as
curbside pickup and at-home delivery of groceries are likely to see
a large increase in popularity. In addition, more than half of
consumers (52%) plan to shop for gifts at more online stores, with
digital gifting, such as gift cards, expected to be a safe
replacement for physical presents. Many respondents are avoiding
giving experiential gifts, while others will be looking to stretch
their dollars — and provide activities for people spending more
time at home — with gifts for the whole family rather than
individuals. Among gift givers, nearly half of respondents plan to
spend between $100 and $499. One-third of shoppers state they will
have a smaller gift-giving budget this year.
Among the report’s findings:
- 42% plan to order more of their non-food groceries online
compared to last year
- 40% will continue to shop in person at brick-and-mortar
locations for last-minute grocery needs
- 35% plan to order more of their food groceries online compared
to last year
- 52% of respondents stated they expect there to be shortages of
some grocery items before the end of 2020
Download “The 2020 Challenge: Keeping Spirits Bright This
Holiday Season” and other reports at
advantagesolutions.net/newsroom.
About Advantage Sales
Advantage Sales, a division of Advantage Solutions, is a leading
sales agency and business solutions provider in the retail and
consumer goods industry. Advantage Sales offers a full range of
services — including headquarter sales services; analytics,
insights and intelligence; retail services; business process
outsourcing and in-store media — that create value for clients by
helping them grow sales, reduce costs and quickly execute
go-to-market strategies. Our solutions drive growth for clients by
maximizing the availability of their brands across retail,
foodservice and online channels and by optimizing how they are
priced, positioned and promoted. Visit advantagesales.net to learn
more.
About Advantage Solutions
Advantage Solutions is a leading business solutions provider
committed to driving growth for consumer goods manufacturers and
retailers through winning insights and execution. Advantage’s data
and technology-enabled omnichannel solutions — including sales,
retail merchandising, business intelligence, digital commerce and a
full suite of marketing services — help brands and retailers across
a broad range of channels drive consumer demand, increase sales and
achieve operating efficiencies. Headquartered in Irvine,
California, Advantage has offices throughout North America and a
presence in select markets throughout Africa, Asia, Australia and
Europe through which it services the global needs of multinational,
regional and local manufacturers. For more information, please
visit advantagesolutions.net.
Media ContactAdvantage SolutionsWill MintonVice
President, Corporate
Marketing949-797-3105will.minton@advantagesolutions.net
Prosek Partners on behalf of Advantage SolutionsAlexa
OttensteinAssociate Vice
President646-818-9051aottenstein@prosek.com
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