Shop till you drop
 | | | | | | | | | | | | Blockbuster sales. Despite supply-chain gridlock, US sales look set to grow in November and December and could result in the biggest year-on-year leap this holiday season since 1999. Eager consumers have more disposable income from government stimulus programs (after saving an additional $500 billion over 2020) and are sitting on lots of pent-up demand. While shortages may cost retailers up to $10 billion this season, many have anticipated supply-chain turmoil by stocking their shelves earlier and in greater volume. [Fortune] | | | | | | Early-bird shoppers. This holiday season, in addition to the typical deals, retailers are encouraging consumers to shop early. Many are worried that supply-chain problems, inventory issues, and staffing shortfalls will stymie sales at the critical time when retailers earn a large portion of their revenue. Early-bird shoppers also tend to spend more—for instance, shoppers that begin buying gifts before the Thanksgiving holiday spend about 23% more than those who wait until later, according to one estimate. [WSJ] | | | | | | | | | | | | | | Why it matters. Our research indicates that 2021 holiday shoppers are more willing than ever to switch brands or retailers, especially when items are unavailable. Many are also spending earlier than in previous seasons due to potential product shortages, shipping delays, and increased excitement to shop. By acting promptly to retain consumer loyalty, retailers can successfully navigate what may be a record spending season. | | | | | | Optimistic shoppers. According to our survey of nearly 2,100 US shoppers, high-income earners and millennials are feeling highly optimistic, with half of those earning at least $100,000 per year and about 50% of millennials saying they are excited about the holidays. But many are also anxious about empty shelves, preferring to switch retailers or brands to find an out-of-stock item. Read our article for six ways to maintain consumer loyalty amid a challenging holiday season. | | | | —Edited by Paromita Ghosh
| | | | | | | | | | | | | | | This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. | | | You received this email because you subscribed to the On Point newsletter. | | | | Copyright © 2021 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007 | | | |
| |
No comments:
Post a Comment