New study by Adobe Analytics uncovers retail trends for 2020 and beyond
According to a new report from Adobe Analytics, which tracked 80 of the top 100 retailers in the US during the Black Friday weekend, found that consumer spending grew by 22% to hit a new record in 2020. Consumers collectively spent $9 billion online the day after Thanksgiving, which is a 21.6% increase over last year, according to â€œUnboxing 2020’s Holiday Shopping Forecast.â€
Here is a quick look at the top trends and predictions from the 2020 holiday shopping season:
- Ecommerce companies will realize record gains despite COVID-19
- Online holiday season spend could reach as much as $189 billion at 33% YoY growth.
- COVID-informed online demand remains elevated and will ensure record-shattering Black Friday & Cyber Monday sales days while propelling shopping growth early November. Black Friday is expected to reach $10 billion!
- To reduce shipping, inventory, and logistical challenges, retailers began discounting early November to drive earlier purchasing and demand.
- The new shopping playbook for the COVID era
- Holidays sharply increase ecommerce activity. However, retailers this year are witnessing an entirely different kind of spike â€“ which was previously unheard of.
- On smartphones, buying intent and the number of products in them are already running hotter than last holiday season, breaking all historical patterns.
- A shipping season unlike any other
- Online commerce and shipping behaviors are already at holiday levels before even entering the season.
- BOPIS (buy online, pickup in store) growth is expected to explode over the holiday season, as consumers look to acquire items without shipping costs and fast delivery.
- David vs. Goliath vs. COVID
- Large retailers ($1 billion+) are expected to initiate deals earlier and continue to grow their share of total holiday spend over small retailers ($10-50 million).
- However, the holiday season continues to be important for smaller retailers â€” they are able to drive higher sales boosts from the holiday season relative to the rest of the year.
- The smaller retailers have also been more effective in driving traffic from new customers.
- Top gifts for an unprecedented holiday
- New game consoles and related accessories are expected to top gift lists, along with perennial favorites.
- Smartphones to reach new heights despite in-home shopping
- Consumers will do 42% of their shopping from smartphones this holiday season
What Is Driving the New Wave of Shopping Habits?
For the past couple of years, retailers have been trying to move sales up earlier in the season, encountering some resistance from consumers. However, this year, store capacity limits will create big lines and turn many consumers away at the door, pulling them online. This consumer spending that is typically made offline could help retailers channel it online and rake in large amounts of orders, which would make Black Friday more profitable than Cyber Monday.
With the decrease in time spent commuting combined with continued usage of computers while working from home, some thought the advance of smartphones as preferred shopping devices would stall. However, smartphone shopping growth has continued at an accelerated rate. Adobe predicts that consumers will do 42% of their shopping from smartphones this holiday season. $28 billion more will be spent on smartphones this year.
Taylor Schreiner, Director of Adobe Digital Insights, saidOpens a new window ,Â â€œWe are seeing strong growth as consumers continue to move shopping from offline to online this year. New consoles, phones, smart devices and TVs that are traditional Black Friday purchases are sharing online shopping cart space this year with unorthodox Black Friday purchases such as groceries, clothes and alcohol, that would previously have been purchased in-store.â€