Majority of Shoppers Set to Return Holiday Gifts, Research Reveals
In the lead-up to the New Year, retail trends are shaping up to be quite interesting. According to various reports and studies, consumers are planning to spend, return, and shop in new ways this season.
Firstly, nearly half (49%) of consumers are planning to invest in their New Year's resolutions, whether that be fitness gear for exercising more or clothing for traveling. Among the top resolutions are exercising more (35%), spending time with family (28%), traveling (19%), and saving money (44%).
When it comes to shopping, more than half (51%) of shoppers plan to continue their spending after Christmas. This post-holiday shopping trend is expected to increase by approximately 10% in 2021 compared to previous years, thanks to extended holiday seasons, increased online shopping, and more flexible return policies following the pandemic.
Thirty-four percent of respondents said they're shopping for themselves after the holiday season ends, and clothing sales increased by a significant 47.3% during the 2021 holiday season. Mastercard's SpendingPulse found that holiday retail sales (excluding vehicles) grew by 8.5% compared to last year, with online sales rising by 11%.
Retailers are also adapting to suit their customers' needs. They are reworking stores by creating age-appropriate experiences, integrating technology, and implementing complementary shop-in-shops. Additionally, generous returns policies have become expected by shoppers, but they can harm a retailer's financials and the environment. Retailers often liquidate or get rid of the unwanted items returned by shoppers.
Interestingly, thirty-eight percent of shoppers plan to return gifts this year. A report from CBRE and Optoro predicts that shoppers could return $66.7 billion in merchandise this year, up 45.6% over the past five-year average.
To accommodate these returns, multiple brands and retailers, including Amazon, Macy's, Athleta, and Best Buy, have extended their returns period until mid-to-late January. This move is expected to further boost post-Christmas shopping and returns.
In conclusion, the 2021 holiday shopping season has been marked by increased spending, flexible return policies, and a shift towards online shopping. As we move into the New Year, it will be interesting to see how these trends continue to evolve.
- In the wake of the pandemic, technology has played a significant role in shaping the retail industry,with increased online shopping being a noticeable trend.
- The editorial policy of many publications has increasingly focused on the environmental impact of returns,as retailers grapple with the environmental and financial consequences of generous return policies.
- AI is not just limited to warfare and defense; it is also being utilized in the retail sector,where it is used to analyze consumer behavior and tailor marketing efforts accordingly.
- As part of their New Year's resolutions, consumers are planning to allocate a significant portion of their budget towards shopping,with travel-related purchases being a popular choice.
- The labor industry has been impacted by the retail trends,as the increase in online shopping has led to a surge in demand for delivery and warehouse workers.
- The retail e-commerce sales have soared during the pandemic,with a large portion of the population opting for online shopping over traditional in-store shopping.
- In the realm of lifestyle and shopping, there has been a noticeable shift towards sustainability and ethical practices,with consumers showing a growing preference for brands that prioritize environment-friendly policies.
