Depending on who you ask, shopping during the 2021 holiday season will either be a struggle or a joy. The National Retail Federation (NRF) is predicting a record year for holiday spending while McKinsey estimates that ongoing supply chain issues and high demand will complicate matters. If you want to enjoy a stress-free holiday shopping experience, here’s what you need to know about the season to come.
People joke that the winter holiday season seems to start earlier and earlier every year. For people hoping for cheap holiday shopping and the best deals and selection, that’s definitely true for 2021. Nearly half of consumers surveyed by the NRF said they planned on getting a start on shopping for the holidays before November.
Retailers also seem to have gotten the “get an early start” memo. Many have run pre-Black Friday sales or Black Friday preview days several weeks before the traditional start of the shopping season.
Shoppers aren’t just starting early to get the best price on gifts and holiday decorations. They’re shopping early because of concerns about product availability and other potential challenges caused by the pandemic. While many shoppers are used to quick shipping and delivery, 45 percent of the people McKinsey surveyed expressed concern about shipping lead times.
The 2020 holiday season was one for the record books and the predictions are that 2021 will best those records. The NRF expects to see holiday spending increase by up to 10.5 percent in 2021, to $859 billion (up from $777.3 billion in 2020). NRF’s prediction tracks with spending patterns seen throughout 2021. The organization also notes that the weather is going to be colder this holiday season, thanks to La Niña. Colder weather often inspires people to spend more.
Now’s the time to start budgeting and making a spending plan for the holidays. A few small adjustments to your spending habits, such as skipping takeout a few times a month, can help you save money to use for online or local holiday shopping. If you’re looking to celebrate the 2021 holidays with lots of gifts, decorations, and entertainment, but aren’t sure you’ll have the extra cash to spare, a personal loan can help you get through the season. Personal loans often have lower interest rates than credit cards and don’t require you to put up collateral.
If you need some gift-giving inspiration, turn to social media. McKinsey found that 58 percent of shoppers get holiday advice and shopping ideas from social media influencers. Social media can be a great way to find the best websites for holiday shopping and to discover products. If you’re hesitant to shop in person this year, watching videos or reading posts by influencers that describe or thoroughly review a product can help you determine if it’s the right gift to give.
Social shopping also reflects the shift to e-commerce and online purchases. Online shopping has increased substantially since the start of the pandemic and it’s expected to remain elevated through the 2021 holidays.
Although many shoppers continue to embrace e-commerce this holiday season, they aren’t necessarily remaining loyal to stores they shopped at previously. It can pay to shop around this year, as supply chain concerns and limited availability can mean that your preferred retailer doesn’t have the products you want to buy in stock. McKinsey’s survey found that very few people, just 13 percent, were willing to wait for a product to come back in stock. Most either switched brands or went to a different store.
Stock issues aside, there are other benefits of shopping around during the holidays. You might find the gifts you want to give at a lower price elsewhere or you might end up buying a more unique and creative present for your loved ones.
While big retailers have Black Friday and Cyber Monday locked in, there’s also been a push to highlight small business holiday shopping. Small Business Saturday debuted in 2010 and has shown a spotlight on local businesses and mom-and-pop shops ever since.
While smaller companies might not give shoppers the deals they’ve come to expect from the major online retailers and big-box stores, they do often provide one-of-a-kind gifts and the opportunity to support the local economy. Nearly one-quarter of shoppers surveyed by the NRF said that they plan on shopping locally during the 2021 holidays.
