‘Tis the Season: Consumers Will Turn Online to Holiday Shop During the Pandemic

Shopkick survey finds majority of holiday shoppers will make more online purchases than usual, but many plan to host normal holiday gatherings.

While 2020 has been a year full of change, one familiar feeling is setting in — the holiday season will be here before we know it. With states shutting down for a second time due to an uptick in COVID cases, more consumers plan to shop online (a 16 percent increase compared to last year), but nearly half (45 percent) expect to host the same amount of friends and family at this year’s holiday gatherings.

Shopkick surveyed nearly 17,000 American consumers to gain insight on when, where and how they will be shopping this holiday season. The survey uncovered how much shoppers plan to spend, and how they think the current health and economic crises will impact their behaviors.

Key findings include:

Online Occasion: While online shopping is beloved by many year-round, it will be especially useful this holiday during the pandemic. The majority of shoppers (67 percent this year vs. 51 percent in 2019) expect to make their holiday purchases online to avoid crowds and exposure. Of those shopping online, 65 percent plan to purchase gifts via Amazon, followed by big box retail sites like Target.com and Walmart.com (18 percent), and department store sites like Macys.com and Kohls.com (six percent).

Amazon and Etsy and eBay, oh my: For those planning to shop at online-only retailers, 72 percent plan to find gifts on Amazon, followed by Etsy (56 percent), eBay (43 percent), Wayfair (39 percent), and Overstock (32 percent).

Spend Trend: Sixty-three percent expect to spend a similar amount of money as last year on their holiday shopping (ranging from $301 to $600), however, 23 percent expect to spend less than last year. Meanwhile, 14 percent expect to spend more.

Add Free Shipping to the List: Last year, low prices were the most important incentive for shoppers, but with more shopping online this year, the majority of consumers (54 percent) are most incentivized by free shipping. Just 24 percent believe low prices are most important.

BOPIS with a Bow: With the help of “buy online, pick up in-store” (BOPIS), making holiday purchases is more convenient than ever. Just 17 percent of consumers say they will not be taking advantage of BOPIS this year, compared to nearly half (44 percent) who say they will.

More Clothes, Fewer Toys: This year, 25 percent of gift-givers plan to spend most of their budget on apparel, beating out last year’s top category – electronics. Following closely behind, 21 percent plan to spend most of their budget on electronics, toys and video games.

Early Bird Gets the Gift: Shoppers are still itching to cross off their holiday lists early this year. With nearly identical results to 2019, 34 percent plan to get their shopping done before Thanksgiving, 27 percent plan to shop between Black Friday and Cyber Monday and 17 percent expect to shop on Black Friday.

Gifts and Gatherings: Considering the surge in COVID-19 cases, it is no surprise that nearly 50 percent of Americans plan to host fewer friends and family at this year’s holiday gatherings. However, 45 percent of Americans expect to host the same number of people, with five percent even planning for larger holiday celebrations.

As the most important season for retail quickly approaches, there is rising concern about the impact the COVID-19 crisis could have on consumer shopping behaviors,” said Dave Fisch, general manager of Shopkick. “Our data shows that holiday shoppers are already preparing for the season in new ways. With less of a focus on the experiential holiday activations that have dominated years past, brands and retailers must step up their omnichannel and e-commerce capabilities to be successful through the end of the year and beyond.

To learn more about how Shopkick can help you reach consumers wherever and whenever they’re shopping this holiday season, get in touch at partners@shopkick.com

This survey was conducted between June 25 and July 1, 2020.

American Shopping Behavior Evolving Weekly Amidst COVID-19 Crisis

Essential items remain out-of-stock on store shelves, consumers tightening belts on nonessential items. 

As COVID-19 continues to impact Americans’ daily lives, new updates and stricter regulations paired with growing concerns about the virus have led to drastic changes in consumer shopping behavior in just a matter of weeks, according to a new Shopkick survey. After comparing the new data with two previous surveys – the first in mid-March, the other in early April – we found key differences in consumer behavior related to in-store shopping, spending on non-essential items, health precautions and more.

In this latest study, we surveyed more than 20,000 consumers across the country between April 16-20, 2020 to gain insights into how consumer behavior has changed as the COVID-19 situation evolves.

Key findings include:

Growing concerns are changing shopping behavior. In the March survey, 76 percent of consumers said concerns about the virus were affecting their shopping habits. Now, with national stay-at-home orders in effect and people having a much clearer understanding of how the virus spreads, that number has jumped to 82 percent, with 45 percent of consumers also saying they were more concerned.

Consumers are frequenting new retailers more often. Consumers remain open to trying new brands and products, with more taking advantage of varied inventory at different types of retailers. The number of consumers visiting a wider range of store types increased in the latest survey, with a higher percentage saying they were shopping in grocery stores (77 percent in April, 72 percent in March), big box retailers (72 percent in April, 69 percent in March), drug stores (45 percent in April, 42 percent in March), dollar stores (35 percent in April, 32 percent in March), club stores (29 percent in April, 27 percent in March) and convenience stores (20 percent in April, 19 percent in March).

Americans are only braving stores once a week. In the March survey, 50 percent of consumers said they averaged one trip to the store per week. Now, with social distancing orders in effect across the country, that number has increased to 60 percent, with a near 10 percent drop in more frequent shopping trips across the board.

Health precautions now include wearing gloves and masks. Ninety-one percent of consumers now take additional health precautions while shopping in-store, compared to 85 percent previously. These precautions include disinfecting hands and shopping carts (89 percent), using debit/credit cards to avoid exchanging cash (68 percent), shopping at less busy times (67 percent) and using self-checkout (53 percent). Due to new government regulations, many shoppers are also wearing protective masks (78 percent) and gloves (42 percent) while in stores.

Younger shoppers are still stocking up. America’s youngest consumers are continuing to fill their shopping carts with essential items. Most Gen Zers (67 percent) and Millennials (58 percent) said they were still stocking up this month, compared to less than half of Gen Xers (49 percent) and Boomers (42 percent).

Consumers are spending less on non-essential purchases. In March, slightly more than half of consumers said they were spending less on non-essential purchases (52 percent). Now, that number has increased to 67 percent.

Toilet paper is still out of stock. Americans are still struggling to find essential items on store shelves, with 64 percent reporting these items as sold out or low-in-stock. Consumers said the most out-of-stock essentials included toilet paper (91 percent), cleaning supplies (81 percent), paper towels (71 percent) and medical items like masks and gloves (59 percent). Meanwhile, other essentials like soups and canned goods (37 percent), baby wipes (35 percent), pasta (33 percent), painkillers and medicine (23 percent) and pet supplies (eight percent) appeared to be making their way back to shelves.

Similar data was uncovered by Trax, the parent company of Shopkick. The leading global provider of computer vision solutions and analytics for retail looked at two weeks of shelf inventory data (March 30 – April 10) from more than 300 stores across a variety of U.S. retailers. Trax processed over 50,000 images of shelves carrying 10 essential product categories to understand the reality of shelf availability in store.

This broad picture of actual product availability depicts similar findings to what consumers reported seeing totally out-of-stock and low-in-stock items included toilet paper (92 percent), cleaning supplies (53 percent) and baby wipes (46 percent). Meanwhile, painkillers, pasta, soups and pet supplies were mostly in-stock.

“As the realities of COVID-19 sink in and we get a better grasp on how to combat the virus, consumers will continue to change their shopping behaviors to match,” said Dave Fisch, general manager of Shopkick. “We have already seen ebbs and flows in actual purchasing behavior as Americans figure out how to navigate the situation for themselves and their families. We hope that by providing the most up-to-date data, we can help paint the full picture of what retailers and consumers are experiencing during these rapidly changing times.”

Get in touch for more information on our continued efforts to help our partners navigate shifting consumer behaviors during these unprecedented times.

 

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80% of consumers still plan to celebrate Mother’s Day

Although the impact of COVID-19 is being felt across the country, the majority of Americans still plan on celebrating Mom come May 10. The celebration may just look a little different than last year. We surveyed more than 25,000 consumers to gain insights into Mother’s Day plans and preparations during this uncertain time.  Continue reading “80% of consumers still plan to celebrate Mother’s Day”

How to Support Your Community During COVID-19

We all have favorite small businesses we enjoy supporting whether they’re located in our hometowns or online. Many of the businesses we are thrilled to support during other times throughout the year are the same businesses that are being hit the hardest now during the coronavirus quarantine. Though we may be inside and at home, there are still plenty of simple and easy things we can do to support our communities. Here are five of our ideas:

1. Contribute to Charity Campaigns

Online campaigns are launching to support small business employees who cannot work during COVID-19, and we have been happy to support them during this time. When many of us donate $5 or $10 to these campaigns, those amounts add up to much more and fast!

2. Order Takeout

We may not be able to eat in person at our favorite local restaurants, but many are still offering takeout. So, order online and turn to Uber Eats to bring you your delivery. P.S: Make sure to use Shopkick if you order with Uber Eats because you’ll earn kicks!

3. Purchase a Gift Card

A gift card can go a long way for a small business in your community. Your purchase provides cash flow for the business now, and it offers a promise that you’re going to return once they can open their doors again.

4. Post on Social Media

Posting about your favorite shops, boutiques, and restaurants on social media is a quick, easy, and free way to show your support! Consider sharing menu items you enjoy from local restaurants or items you have purchased from local shops. Everyone enjoys visuals!

5. Shop Small

If you do need to purchase something online, try supporting a smaller shop or boutique! Many have online stores so their items are always available, and now shopping online is the best way to pick up new items while still keeping your social distance.

How are you supporting your community? Chime in on Facebook!