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Holiday 2021 InsightsConsumers plan to shop earlier

as pandemic carries on

As the winter holidays inch closer, Americans are already starting to think about how they’ll approach the biggest shopping season of the year, especially after many of last year’s traditions and celebrations were put on hold. Shopkick surveyed over 23,000 American consumers between July 5 - July 12, 2021 to gain insight on when, where, and how they will be shopping this holiday season, how the current economy will impact their behavior, and how sentiment has shifted since last year.

Although concerns surrounding COVID-19 have subsided significantly and vaccinations have become widely available, 79% of consumers still expect the pandemic to impact how they shop in one way or another. 41% of consumers plan to shop online more than they typically would to avoid crowds and exposure, 33% plan to spend less on frivolous purchases, and 31% plan to make fewer shopping trips.

Shopkick Holiday 2021 InsightsConsumers plan to shop earlier as pandemic carries on

22021 Holiday Expectations Study

I plan to shop online more than I typicallywould to avoid crowds/exposure41%

I plan to make fewer shopping trips

33% I plan to spend less on frivolouspurchases

31%I plan to support small businessesmore than I typically would26%I plan to visit malls and larger shoppingcenters less than I typically would15%I plan to utilize BOPIS more than I typicallywould13%

Do you expect the pandemic to impact how you shop this holiday season in any of the following ways?

Many Americans are still recovering from the economic implications of COVID-19, and more than half (52%) report that the threat of continued inflation will impact their holiday budgets. But even so, 64% of consumers still plan to spend the same amount as last year on their holiday shopping. 30% of consumers expect to spend between $300 - $600, 15% between $600 - $900, and 23% over $900.

I have more people to shop forthan I did last year37%I feel more financially secure/have a biggerbudget this year33%

I didn't puchase holiday gifts this last year24%

I feel more comfortable shoppingin-store for gifts24%

I will be attending more holiday gatheringsthis year20%Other6%

Why do you expect to spend more than last year?

Of the 15% of shoppers planning to spend more this holiday season than they did last, 37% say they have more people to shop for than they did last year, while 33% are feeling more financially secure and have a bigger overall budget.


$301 - $600

31% 30%

$101 - $300

25% 24%

$601 - $900

15% 15%

$901 - $1200

11%14%

$1200+

9%

2020 2021

9%

$0 - $100

9% 8%

On the flip side, 21% of shoppers are planning to spend less this year than last, with a large majority (74%) feeling less financially secure and having a smaller overall budget.

In total, how much do you expect to spend on holiday shopping this year?

I feel less financially secure/have a smaller budget this year74%I have fewer people to shop for thanI did last year23%I will be attending fewer holiday gatheringsthis year

I don't feel comfortable shoppingin-store for gifts

15%9%

Other6%

Why do you expect to spend less than last year?

Apparel

31%

Electronics

21%Experiences(Travel, concerts, etc.)

5%

Home

11%

Toys & VideoGames19%

Beauty

4%

Wellness &Fitness3%Sporting Goods

2%5:45

What category do you expect to spend the most on when shopping for gifts this holiday season?


59% of consumers report that requests from children, family members, and friends are the most influential when building holiday shopping lists, followed by rewards (39%), and weekly circulars (30%).

This year, 31% of consumers plan to spend most of their holiday budget on apparel, beating out electronics, toys and video games, and more. For the 74% of consumers planning to purchase toys this holiday season, arts and crafts (37%), board games and puzzles (36%), video games (31%), building sets (23%) and action figure playsets (23%) will be most popular.

Other

5%

Requests from children,family members and friends59%Rewards39%Weekly circulars

Word of mouth

30%21%

Digital advertising

Curated gift lists

TV advertisements

Online advertising

Email marketing

20%18%16%11%10%

Nearly a quarter (22%) of consumers say they plan to shop earlier this year than last, with 25% expecting to do the majority of their shopping before Thanksgiving, and 10% before Halloween. More than half of consumers (52%) plan to do the majority of their gift shopping over the Thanksgiving weekend stretch between Thanksgiving Day and Cyber Monday, while 14% will wait until after Cyber Monday to complete their shopping. For brands and retailers looking to drive early holiday shopping, a majority of consumers (78%) said that sales and promotions influence them to get started.


Which of the following influences you when building your holiday shopping list?

While 70% of respondents positively support retailers closing their doors on Thanksgiving Day to encourage both employees and shoppers to spend time with loved ones, 23% still plan to shop on the holiday, and 60% of those will shop in-store.

Consumers are eager to take advantage of deal days, with 61% reporting that they are planning to shop on Black Friday (compared to 57% last year) and 67% on Cyber Monday (compared to 65% last year.) The majority (78%) of those planning to take advantage of Black Friday will do so online, followed by in-store (64%) and on mobile (36%). Shoppers clicking into Cyber Monday will do so on their laptop or desktop (71%), followed by their smartphone or tablet (67%).

When do you expect you will do the majority of your holiday gift shopping this year?


Thanksgiving

23%Yes

77%NoBlack Friday

61%Yes

39%No

Cyber Monday

Thanksgiving

After Cyber Monday

Black Friday

Cyber Monday

67%

15%Between Black Friday and Cyber Monday

27%Before Thanksgiving25%

14%2%

8%Before Halloween

10%

Yes

33%No

Require shoppers to wear face covering

Only allow a certain number of shoppersin-store at once

Offer touchless experiences

Require employees to wear face coverings

Install plexiglass barriers at checkout

Enforce social distancing measures

Offer disinfecting spray


Of those shopping in-store, 72% will expect in-store safety measures to continue throughout the holiday season, requesting that retailers:

Younger generations are more likely than their older counterparts to steal deals, with 76% of Gen Z and 66% of Millennials planning to shop on Black Friday compared to 61% of Gen X, 53% of Baby Boomers, and 43% of the Silent Generation.

Although online shopping increased during the pandemic, 43% of consumers expect to make the majority of their holiday purchases in a physical store -- a 9% increase compared to last year. The majority (68%) will visit big-box stores like Target and Walmart to complete their holiday shopping, while others will visit off-price retailers like TJ Maxx and Marshalls (10%) and department stores (9%).

When it comes to the in-store experience, the ability to try on, touch, and see physical products (70%) and in-person interactions with sales associates (41%) were ranked as most important to consumers, followed by product sampling (20%), complimentary gift wrapping (15%), and holiday activations like on-site Santas (13%).

Consumers will also prioritize shopping on less busy days and at less busy times (45%) and shopping at one-stop shops to knock a variety of things out in one trip (42%).

23%

23%

28%32%

34%36%

48%

Shopping on less busy daysat less busy times 45%Shopping at one-stop shops (Target, Walmart)to purchase holiday giftsand everyday items at the same time

Visiting as few stores as possible to avoid crowdsand exposure, even if it means sacrificing certainitems or not visiting my preferred stores

42%Visiting multiple stores to checkeverything off my holiday shopping list

Shopping with retailers whoare close to home

34%29%

Shopping with retailers who stillimplement safety precautions 25%

25%Shopping with retailerswho have BOPIS options 5%

Which of the following will you prioritize when shopping in-store this holiday season

The remaining 57% of consumers expect to make the majority of their holiday purchases online, a 10% decrease from last year. As expected, Amazon reigns supreme with 73% reporting it will be their primary online shopping destination. Outside of Amazon, younger generations (65% of Gen Z and 60% of Millennials) will gravitate towards Etsy, while 57% of those 75+ will frequent eBay.

Of all the online perks, free shipping and returns remain the top priority for online shoppers. Almost all consumers (94%) say free shipping is the most crucial incentive for online seasonal shopping, followed by fast shipping (60%). Flexible and long return policies (31%), “buy now, pay later” and BOPIS (19% each) are much less of a priority.


Free shipping and returns 94%Fast shipping 60%Flexible/long return policy

Buy now, pay later options

31%19%

BOPIS/same day pickup 19%Other 3%

Which online perks arethe most important to you?


Although BOPIS options may not be high-priority for online shoppers, 42% of consumers still plan to take advantage of the convenient offering this holiday season, while another 37% aren’t quite sure yet.

Between frequent out-of-stocks and financial difficulty for many Americans, brand loyalty has been put to the test throughout the pandemic. If certain gifts or grocery items are sold out or low-in-stock due to demand or supply chain issues, 63% of consumers say they will be moderately loyal to their favorite go-to brands this holiday season, while 22% will remain very loyal, and 16% will not remain loyal.


Consumers are eager to get their holiday shopping done this year, and they’re ready to spend. As brands and retailers prepare for the biggest season of the year, it will be imperative that they get an earlier start, improve their omnichannel and e-commerce capabilities, and offer the best deals on the traditional days consumers have come to love.

To learn more about how Shopkick can help strengthen your omnichannel strategy this holiday season, get in touch at [email protected]

Shopkick can help you drive incremental traffic, boost product engagement, and lift sales during the busy holiday period, both online and in-store. It’s an easy optimization to your current holiday strategy, with programs that can be up and running in a matter of weeks. And by offering rewards, rather than coupons or discounts, you’ll preserve your margin and brand.