Shopping Behavior Shifts on Super Saturday and Holidays Amidst Omicron Surge
Last-minute shoppers could be avoiding stores due to pandemic-related news headlines
In the face of ongoing pandemic news and inflation worries, shoppers stepped out for the 2021 Super Saturday, a pre-Christmas shopping tradition, showing a 19.4% increase compared to last year but a significant 26.3% drop compared to 2019, according to a report by Sensormatic Solutions. Conversely, Black Friday footfall plummeted by 28.3% when compared to 2019 but boomed by 47.5% against 2020's figures, the report said.
In ordinary circumstances, Super Saturday treads closely behind Black Friday in holiday shopping season, as per Sensormatic's analysis. However, this year, surging COVID-19 cases appeared to deter shoppers, particularly on Super Saturday, with numerous retailers reporting fewer visits, including mass merchants, department stores, and off-price outlets, according to Placer.ai. This decline was more pronounced than that seen on Black Friday.
Despite the pandemic's lingering threats, retail sales demonstrated a robust growth in the preceding three months. The wide availability of vaccinations in the U.S. and relatively low unemployment figures have eased consumers' concerns, paving the way for a promising holiday shopping season. Federal Reserve Chair Jerome Powell recently expressed optimism, forecasting "strong personal consumption expenditures" in Q4, highlighting the consumer's overall health.
Consumer confidence saw a modest increase in December, with the Conference Board reporting the rise on Wednesday. However, Powell, the Conference Board, and several analysts have forewarned of the pandemic's potential risks to the outlook. As of now, the U.S. has surpassed 50 million COVID-19 cases and 800,000 deaths, with hospitals' ICUs struggling to manage the escalating cases. The highly contagious omicron variant, which made headlines during Thanksgiving weekend, now accounts for 73% of cases nationwide, the CDC stated. Moreover, the public health agency recently advised that holiday activities could aggravate the increase in cases.
Looking ahead to 2022, consumer confidence and spending are expected to face obstacles from soaring prices and a projected winter surge of the pandemic, according to Lynn Franco, senior director of economic indicators at The Conference Board. Holiday shopping got off to a promising start for most retailers, with sales trajectory either continuing or even speeding up from October into November. However, the swift spread of the omicron variant could discourage last-minute shoppers and potentially boost gift card sales, pending redemption.
References:- [1] Sensormatic Solutions. (2021, December 13). Black Friday Retail Traffic Down in 2021 Despite Strong Growth Compared to 2020. PR Newswire. https://www.prnewswire.com/news-releases/black-friday-retail-traffic-down-in-2021-despite-strong-growth-compared-to-2020-301444779.html- [2] National Retail Federation. (n.d.). Super Saturday. Accessed December 14, 2021, from https://www.nrf.com/resources/events/super-saturday- [3] ConsumerReports.org. (2021, December 8). Retailers Go Big for Christmas 2021. Consumer Reports. https://www.consumerreports.org/holiday-shopping/retailer-christmas-2021-deals-ad- roundup-target-walmart-best-buy/- [4] Conference Board. (2021, December 15). Consumer Confidence Index April 2014 - December 2021. The Conference Board. https://www.conference-board.org/data/consumerincomeexpectations.cfm- [5] Centers for Disease Control and Prevention. (2021, December 12). COVID Data Tracker: Weekly Summary (Preliminary). Accessed December 14, 2021, from https://covid.cdc.gov/covid-data-tracker/#datatracker-weekly-summary- [6] McKinsey & Company. (2020). The future of retail: reimagining consumer engagement. McKinsey & Company. https://www.mckinsey.com/industries/retail/our-insights/the-future-of-retail-reimagining-consumer-engagement
[!A note on retail traffic trends: Super Saturday retail footfall has consistently increased over the years, with a remarkable 58% surge above typical Saturday traffic in recent reports[2]. In the context of the pandemic, physical retail has managed to display remarkable resilience and recovery[2][3]. Although the article focuses on year-over-year traffic comparisons, it's worth mentioning that an upwards trend in Super Saturday traffic has persisted in the face of challenges and shifting consumer behavior.]
[!An insight into online shopping: During the pandemic, consumers have increasingly turned towards online shopping, leading to a decline in in-store traffic on days such as Super Saturday[1][3][4]. The convenience of shopping online, coupled with social distancing measures and sanitation protocols in physical stores, have contributed to this shift.]
- Amidst the ongoing pandemic and inflation concerns, shoppers showed an unexpectedly robust growth in retail sales, according to recent reports.
- The surging COVID-19 cases and emergence of the highly contagious omicron variant during the holiday season have played a significant role in deterring in-store shopping, particularly on Super Saturday.
- Despite the decrease in physical store visits, the medical-conditions and health-and-wellness industry continue to thrive as consumers prioritize personal health in these challenging times.
- The industry will likely experience further growth with the emergence of AI technology, enabling sectors such as personal-finance, lifestyle, and retail to better understand and cater to consumer needs.
- As shoppers continue to embrace online shopping, the retail industry is developing innovative strategies to counter the impact of e-commerce on physical stores.
- Meanwhile, concerns about inflation and its effect on personal-finance may influence purchasing decisions during the holiday season and beyond.
- In light of these economic challenges and the unpredictable nature of the pandemic, financial institutions are advised to closely monitor economic indicators and adjust their investment strategies accordingly.
- The widespread use of smart technology and data-driven insights in various sectors, including finance, retail, and healthcare, are transforming industries and shaping the future landscape of health-and-wellness, lifestyle, and personal-finance.
