It’s no secret that COVID-19 has affected the way people shop, and not just for Christmas. More than half of Canadian shoppers say the pandemic has changed the way they shop in general, and the trends predicted for this holiday season reflect exactly that.
This season’s average budget is lower across all generations and people continue to seek contactless pickup options to safely check off their Christmas lists. Deloitte’s annual holiday retail survey says that price, product, and convenience remain top of mind for consumers, and it doesn’t look like that will be changing anytime soon.
According to consumer business and technology research firm Forrester, online retail sales in North America are set to grow by 18.5 per cent this year, and popular gifting categories like fashion will be up 19 per cent.
While e-commerce’s exponential growth may be good news for retailers looking to serve and reach beyond their regular customer bases, it’s even more important that they prepare for meeting new consumer needs and expectations.
FashionTech, a Canadian organization that analyzes the impact of technology on the fashion, retail, and beauty industries, thinks the e-commerce first mentality revealed by pandemic shopping trends will influence the way people shop for Christmas for years to come.
With this in mind, here’s five ways that Canadian retailers can gear up for this year’s holiday shopping craze, exceed customer expectations, and profit even larger than before.
#1: Expand contactless pickup options
According to FashionTech’s recent report on how COVID-19 will reshape holiday shopping, retailers reported a 27 per cent revenue increase in BOPUS (buy online pickup in store) in the first quarter of 2020. Since shoppers are likely to limit the amount of time they spend in stores (if they choose to enter one at all), this trend is only likely to grow. In other words, it’s a good time to advance curbside pickup, online ordering, drive thru, delivery, and other contactless options for customers.
#2: Provide a seamless online experience by staying updated
Nearly half of Canadian consumers surveyed by Google/Ipsos in recent months say they have encountered issues while ordering online during the pandemic, and most expect things like discounts or clear out-of-stock and delivery notifications.
Since shopping online will continue to be a preferred method for securing holiday goods, keeping stocks, shipping and delivery options, and Google My Business profiles up to date is more important than ever before. Retailers can win customers with a seamless online experience, so being easy to find is important too.
#3: Flex the #shopsmall muscle
FashionTech has found that homemade gifts are where the heart is, particularly this winter. During lockdown in March and April, search terms related to D.I.Y activities such as gardening, knitting, and artisanal coffee making increased 80 per cent between 2019 and 2020. So, for small retailers who stock locally-made items or products of their own, now is also a good time to encourage customers to #shopsmall.
#4: Promote gift card offerings
Since COVID-19 has made it a lot harder to return and exchange gifts, 31 per cent of Canadians plan to give more gift cards than in previous years. This Christmas, gift cards make incredibly practical gifts considering the impact the pandemic has had on people’s finances.
Presenting someone with a gift card this Christmas could give them the opportunity to buy themselves something they really need, so it’s critical that retailers make this option available to people.
#5: Turn customers on to slow shipping
Since shipments have been backtracked for months, it’s going to be difficult for some retailers to keep up with demand this Christmas. Bloomberg has recommended rewarding shoppers for choosing slow shipping, which would give retailers more time to fulfill orders.
For example, retailers could offer five dollars off online purchases to customers who opt for shipping that puts their package on their doorstep in 10 days instead of two or three. Overall, this incentive allows retailers to hang on to loyal customers and eliminate overcrowding in stores.
Anastasia Barbuzzi is a freelance journalist, photographer, and the digital editor at STYLE Canada. You’ll find her writing about beauty, fashion, life, and wellness on the internet and in print. She’s passionate about promoting and uncovering ways for the world to live a little more sustainably, and she loves a brand with a clean, green attitude. Keep up with her on Instagram and Twitter, and if you need something to read, check out her website.