How Stores Will Lure Shoppers Back Indoors This Holiday Season
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In the early days of the pandemic, shopping shifted to e-commerce, but for Holiday 2021 consumers are expected to head back to stores in larger than usual numbers to select and buy their gifts this year. To ensure those in-store sales and to encourage people to come out, stores are already strategizing about incentives to get shoppers in their doors, which may be a win for those who want to get out out of the house and shop items in person.
Top Reasons Shoppers Will Head Indoors This Holiday
A Shortage of Smart Gadgets and Toys Means Shoppers Need More Options
Manufacturing and shipping issues due to Covid-19 are expected to cause shortages for anything that needs a chip to operate (think: large and small appliances, toys, computers, smart gadgets, etc) which might push shoppers to start planning and buying early. On top of that incentive, retail analysts are predicting a big shopping year for 2021 after consumers have been pent up during the pandemic and may be ready for some in-store shopping.
Plus, while shopping online might be convenient at first click, when the item arrives, it may not be exactly what you wanted. In the end, searching and buying online can end up more hassle than it’s worth, especially if your top brands and items are already sold out. “With in-person shopping, you can see the physical item and avoid costly and annoying returns,” says Leigh Singleton, consumer financial educator for mobile bank Monifi.
Stores Are Preparing to Receive Shoppers Again
Retailers and retail analysts are predicting a big holiday shopping season. Forecasts predict retail sales will be seven to nine percent higher than last year, according to reporting from CNBC. Deloitte’s annual holiday retail forecast predicts a nine percent jump in consumer spending. A forecast by Mastercard SpendingPulse says that higher sales will be driven partially by a return to in-store shopping.
Americans spent an average of $997 on 2020 holiday shopping, according to the National Retail Federation’s annual consumer spending survey. All major spending events this year (back-to-school, Mother’s Day, Easter) have surpassed 2020’s numbers, so the winter holidays should follow that pattern of larger sales for 2021. In anticipation, stores would like a chunk of that holiday change and they know that “impulse buys are more frequent when a customer can see eye-catching displays,” says Singleton. So attracting customers to shop in real life will be a priority.
Stores are already banking on a shopping surge, with chains declaring that they’ll be vastly increasing their holiday workforce. Dick’s Sporting Goods recently announced that they’ll have more seasonal workers this year than any holiday season in their history. They may have the staff, but brick-and-mortar stores will need to entice shoppers away from their phones and computers. Here are some ways they’ll do that.
Brands Like Sephora and Apple Coming to Your Favorite Local Stores
One tactic stores will use to entice customers to shop indoors is partnering with prestige brands shoppers love.
Makeup giant Sephora will be in around 400 Kohl’s stores by the year’s end (they’re already in a number of stores) and beauty chain Ulta is already in Target stores. Target also has both Disney and Apple shop-in-shops primed for holiday crowds. These mini versions of extremely popular brands are popping up in the existing big boxes as a way to offer more value to the customer without having to drop prices. Plus, the convenience of shopping prestige brands in the stores that you visit most often is a win for shoppers as well.
While we will have to wait until after the 2021 holidays for Toys “R” Us to be in 400 Macy’s stores (planned for early 2022), having major retailers integrate new and nostalgic brands into their physical stores is a trend we should see more of as we head into the largest shopping season of the year.
Perks You Can Only Access Shopping In Stores
Business consultant Jeff Pedowitz, author of F The Funnel: A New Way To Engage Customers & Grow Revenue, tells Slickdeals that while the savings in-store could be comparable to shopping online, there are perks to be found by shopping at an actual store. Pedowitz notes that many consumers will opt for in-person shopping for a sense of normalcy after a tumultuous year. It’s likely that people want to get out of the house and have a more “physical” experience to shop.
“In-store-only sales, buy online and pick up in store, and matching online prices to avoid shipping costs are a few ways stores will attract customers to grace their physical doorways,” says Singleton. Perks and partnerships may be appealing to customers, especially when it comes to beauty products, which customers like to see in person before they purchase. Pedowitz says other incentives stores could provide include:
Exclusive in-store sales and products
VIP shopping hours
Loyalty and cash rewards programs
Gourmet food and drinks in-store
Advance ordering and previews
Access to personal shoppers
Malls Are Adding More Amenities and Features
Malls have seen a downturn in recent years, and last year was especially hard due to the pandemic. But we could see a return to malls this season, say experts. “Mall stores will be offering specials to entice customers to shop in-person, so there will definitely be in-store-only savings opportunities to take advantage of as we head into the holiday season,” says Singleton.
Mastercard senior advisor and former Saks CEO Steve Sadove agrees. He told CNBC that a variety of factors, including pent-up demand, a strong stock market and a high savings rate will bring shoppers in: “The consumer wants to get back into the mall.”
As a result of less foot traffic, mall owners and developers have pivoted into new categories such as using parts of their properties for luxury residences and even hotels. Las Vegas has already had success with this scenario, where visitors and paying guests can access and shop public retail centers (aka ‘malls’) that boast more features, deluxe architecture and themes, along with unexpected experiences (ziplining, anyone?) compared to bland suburban malls of the past.
Matching Online Prices Will Be a Store Tactic This Gifting Season
Generally, holiday shoppers expect Door Busters and other in-store savings, but fewer discounts may be found for 2021 due to supply chain issues and inventory shortages, according to Singleton. Although it’ll be hard for stores to dole out discounts, there will be some in-store values. For example. Target’s Deals Days are already happening October 10-12th and are designed to rival Amazon Prime Day. The beloved chain is going to offer thousands of deals and will offer a Holiday Price Match Guarantee.
What About Amazon?
Amazon is known to crush its competitors, thanks to low prices and convenient shipping. The rumor Amazon could potentially have a Prime Day sale in October or November to compete with Black Friday deals may be (partly) true since the current October sale of “Epic Daily Deals” runs through the end of the month. While the deals feature discounts across everything from beauty, home, fashion, electronics, toys, and more, many of the brand names consumers seek out for holiday gifting are not included (unless you are ready early to get a pair of Apple Airpods or Beats headphones up 40% off on Amazon, and only IF you catch them on sale that day on Amazon).
But still, with price matching offers from stores like Target and Best Buy and the draw of seeing products in person may be enough to still entice shoppers indoors (with masks, of course).
Savvy Holiday Shoppers
To help prepare for the holiday shopping surge, Singleton recommends that people set a budget and start shopping early to avoid any supply issues and ensure that they get what they want. Savvy shoppers (like Slickdealers) can use enroll for cashback rebates by downloading the Slickdeals browser extension and arranging for in-store pick-up. They can also stack those saving on top of store loyalty programs like Target Circle to ensure the absolute lowest prices on wish list items.
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