The NPD Group expects an earlier start to an uneven holiday shopping season with pandemic-driven behaviors influencing purchases through the end of the year.
As of July 2021, most U.S. consumers planned to spend the same amount as last year on this year’s holiday shopping, with those who planned to spend less than last year outnumbering those who planned to spend more, according to NPD, a retail market analytics company.
The delta COVID-19 variant has dampened a return to “normal” that consumers began to feel earlier in the year, according to NPD. The resulting uncertainty will require manufacturers and retailers to be prepared, patient and persistent in their actions throughout the holiday shopping season. NPD expects an early and strong start to the season, followed by more pronounced lulls and a late surge.
In July, 8% of U.S. consumers told NPD they started 2021 holiday shopping early, in addition to the 12% who said they always start early. Nearly one-third of consumers said in August they had already purchased a holiday gift, with fashion, toys, store gift cards, home products, beauty, and smart technology topping the list. Nearly one-third of consumers also indicated they had already made a purchase they had planned to make closer to the holidays, according to NPD.
Consumers continue to show some in-store shopping apprehension. While 22% said they looked forward to holiday shopping in stores, 11% said they were still hesitant to shop in stores, and 27% said they planned to do most of their holiday shopping online.
Despite the return of experiential spending as 2021 progresses, it has not yet displaced the pandemic lifestyle. NPD reported leading influences on retail purchases still include more time spent watching TV, cooking, baking and exercising.
