Inventory Fears Sparking Holiday Shoppers to Get Early Start, Surveys Find
Concern over shipping delays is pushing U.S. consumers to shop earlier this holiday season, said a Thursday Blackhawk Network report. Consumers plan to spend more this holiday season, “but there have been notable shifts in what consumers find important and how they are planning to navigate shipping delays and potential out-of-stock issues,” said Blackhawk's Theresa McEndree, head-global marketing and brand. Nearly a third of consumers surveyed said they will shop earlier this year due to concern over shipping delays; 36% are worried the COVID-19 pandemic will hinder their ability to shop, it said.
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A Thursday report from financial services company Klarna said 40% of shoppers plan to get an earlier start this year vs. 2020, with 22% having already begun. Another 22% are aiming for pre-Black Friday shopping, while just 5% said they will wait until after Black Friday to start, it said. Most are motivated by sales and deals (72%), Klarna said, while half want to ensure product availability (50%) and 45% are hoping to avoid publicized shipping delays.
Early shoppers plan to spend 16% more than those who don’t plan to shop earlier, Klarna said. Those who plan to shop mostly online plan to spend 9% more, on average, than shoppers who plan to do most shopping on other channels. About 34% of shoppers plan to spend more on gift-giving this year than 2020, with 53% allotting an additional $101-$500. Forty-eight percent of women shoppers plan to buy electronics online, 37% in stores; 71% of male consumers said they will shop for electronics online and 57% in store.
Gift cards, which had an uptick in purchases before the COVID-19 pandemic based on convenience, will again be popular this season due to concern over slower delivery times and inventory issues for goods, said Blackhawk. Eighty-three percent of consumers surveyed want to give a gift card instead of a physical gift this year, it said. Surveyed shoppers plan to buy 15 gift cards on average, and expect to spend 41% of their gift budget, or $272 on average, on gift cards, up 27% from last year. Klarna data, meanwhile, showed two-thirds of consumers prefer to receive a gift card over a physical gift.
The most popular gift card categories this season will be dining/restaurant, multi-brand, grocery and mass merchant, Blackhawk said. Shoppers surveyed expected to shop for gift cards at mass merchandiser and grocery stores, online retailers and convenience stores. Netflix was one of 10 brands advertised in a Rite Aid ad this week offering customers $20 back in bonus dollars for $100 spent on gift cards.
COVID-19 continues to have a disruptive impact on payment methods. Since the pandemic began, 59% of consumers have started or increased their use of digital wallets, and 43% started using or increased their use of digital gift cards, said Blackhawk. Some 32% of consumers surveyed plan to pay for gifts with gift cards; 26% plan to pay with PayPal or Venmo; and 4% plan to buy gifts using cryptocurrency. Nearly 59% of Generation Z, millennial and Gen X consumers are more likely to pay for gifts with debit cards; 50% plan to use credit cards. Three-fourths of Gen Z shoppers are looking for flexible payment options, 76% for millennials and 60% of Gen Xers, it said.
Reports of waning Black Friday shopping enthusiasm are overstated, said Klarna, saying 57% of shoppers plan to shop Black Friday, among Gen Z (72%), millennials (74%), and Gen X (62%) shoppers. Black Friday could be the biggest online sales of the year, increasing at a projected 22% year-on-year rate vs. 15% for Cyber Monday, it said, citing Adobe Analytics figures.
While e-commerce continues to advance, 23% of shoppers plan to do most shopping in physical stores on Black Friday, led by Gen Xers at 28% vs. 19% of millennials and 22% of baby boomers. Retailers have to “become available for shoppers across multiple channels,” it said. Klarna advised retailers to take advantage of platforms like Instagram and TikTok to showcase their wares “and get Gen Z and Millennial shoppers excited to stop by.” Most consumers search for holiday gifts online, making it important for brands to get products in front of review sites and influencers “who can put your products in the most positive light.”