USFIA’s Premier Partner PwC’s 2020 Holiday Outlook: December edition is now available. Highlighting trends caused by stay-at-home orders and the COVID-19 pandemic, PwC finds that with holiday travel cancelled and entertainment venues closed, this holiday season is all about gift-giving. Although holiday budgets are reflecting economic uncertainty with consumers planning to spend about 7% less in overall holiday spending than last year, consumers plan to spend 9% more on gifts than in 2019. This is likely due to decreased travel and entertainment spending, which frees up money for more generous gifting.
Consumers also report that free shipping is the top lure of brand loyalty, with 68% choosing that above discounts (51%), free samples (49%), and even the newly-popular curbside pickup (40%). This means retailers who offer free shipping have an edge over those that don’t this holiday shopping season. Among age groups, speed and convenience can shift Gen Z (ages 17-24) away from Amazon, so retailers that offer the best of online and in-store options will be set to entice the youngest shoppers.
Check out the full report below to learn more about consumer shopping habits during this unusual holiday season.