The holiday shopping season is always important for retailers. It’s a time that can determine whether many retailers have a profitable year or one in which their revenues disappoint. And this year, with the COVID-19 pandemic still making headlines? It’s even more important.
That’s why a new survey from JLL is such good news.
According to JLL’s latest survey, holiday shoppers this year plan to spend 25 percent more than they did last holiday season. A big reason for this? The phenomenon known as revenge shopping.
Revenge shopping is when consumers make up for lost time by spending more. JLL says that this will provide a boost to retailers this holiday season. Many consumers cut back on their holiday spending in 2020 as COVID-19 cases rose in many parts of the country. This year, these consumers are ready to spend more on everything from decorations and gifts to food and travel.
JLL’s holiday survey results show that consumers plan to spend 25.4 percent more during this year’s holiday season than they did in 2020, with the average consumer planning to spend $870 on holiday-related purchases.
Last year, consumers told JLL they planned to spend an average of $694 on holiday buys. This year’s average spend is almost as high as the $874 average that consumers said they had planned to spend during the pre-pandemic 2019 holiday season.
And in more good news for retailers, many consumers said they plan to return to in-person shopping for their holiday purchases. JLL forecasts that 58 percent of shoppers plan to shop in stores, while 34 percent will buy online and 22.6 percent will rely on curbside pick-up.
The top five retailers that consumers plan to shop at are Amazon, Walmart, Target, Macy’s and Kohl’s.
“Consumers are eager to return to in-person shopping this holiday season, immersing themselves in the holiday spirit,” said Greg Maloney, president of JLL retail. “It’s a full holiday experience that many shoppers look forward to. And it’s refreshing to see that in-person dining and enclosed malls are at the top of consumers’ destination lists.”
Consumers plan to start their holiday shopping early this year, too. JLL’s survey found that more than 50 percent of shoppers will start shopping before Thanksgiving, compared to 43.2 percent that said the same last year. Another 36.3 percent said that they will start shopping two to four weeks before Christmas.
Shopping early might be a sound strategy considering the supply chain disruptions that the pandemic has caused.
“To those last-minute holiday shoppers, proceed with caution,” said Craig Meyer, president of industrial for JLL, in a written statement. “While consumer shopping budgets may be returning to normal, the supply chain is still facing pandemic-related challenges that could cause inventory shortages and shipping delays. Consumers should expect to shop earlier in the season if they want to be guaranteed to receive their items by the holidays.”