Consulting pioneer Deloitte released its annual estimate for 2020 on Tuesday (15 September), which stated that this year’s holiday sales, in all likelihood, could be far from satisfactory.
The report said that retail holiday sales may be anything from slow to modest at a growth of 1 to 1.5 per cent from last year.
It also added that sales would be more than US $ 1.1 billion. Deloitte, however, said that digital sales may jump by 25 to 30 per cent year-over-year.
In a first-of-a-kind Deloitte’s double-scenario prediction, where sales growth potentially remains static, shoppers would be saving more and spending less on holidays. There will be anxiety among shoppers with regard to finance as well as their health.
Deloitte says, in its report, this could be due to several factors like expiry of unemployment insurance benefit supplement or extended closure of schools. That affects the mind and, consequently, desire to spend too.
In a more positive scenario, consumers who are happy about the economic growth and improving health situation may spend the money (saved by not travelling) on holiday shopping.
However, e-commerce will be the biggest gainer. And it’s not just Deloitte saying it! Glassbox, in its survey, too said that 70 per cent of those surveyed intend to do their holiday shopping online – either through mobile phones or through web.
Irrespective of the scenario, consumers’ growing concern for health, finance and safety may still result in a huge shift in the way they are going to spend this holiday season – and that as per analysts and experts don’t look too promising.