Consumers Already Holiday Shopping to Avoid the Supply Chain Grinch

Rhea-AI Summary

A recent Oracle Retail survey reveals that 52% of Americans are beginning their holiday shopping early due to concerns over supply chain delays. Notably, 20% plan to purchase extra gifts to counter potential issues, with 44% of Millennials among them. 72% prefer home delivery, yet 22% fear shipping delays. Additionally, 34% of respondents intend to buy more gift cards, and 41% of people feel that out-of-stock items create a poor shopping experience. Despite pandemic concerns subsiding, 20% plan to shop mostly in-store, rising from 15% in 2020.

Positive

• 52% of shoppers are starting holiday shopping early, indicating strong consumer activity.
• 34% of respondents plan to buy more gift cards, reflecting a shift in gift-giving strategies.
• 72% of consumers prefer home delivery, highlighting a shift towards e-commerce.

Negative

• 28% of respondents worry about increased prices due to supply scarcity.
• 22% fear shipping delays, which may impact consumer satisfaction.

AUSTIN, Texas, Oct. 19, 2021 /PRNewswire/ -- As if a pandemic weren't enough, a new Oracle Retail consumer research study shows that shoppers are worried that supply chain and delivery delays will wreak havoc on the holidays. In response, 52% of Americans have already started holiday shopping or plan to shop earlier than usual. Of the respondents, 20% plan to order more gifts in case some are delayed or canceled, with that number jumping to 44% for Millennials*. Others are taking an easier path, with 34% of people (especially Baby Boomers* at 58%) noting they will buy more gift cards this year.

"As we see in the news, the supply chain challenges are a global reality. Regardless, consumers will still measure retailers on their ability to deliver on their wish lists this holiday season," said Mike Webster, senior vice president, and general manager, Oracle Retail. "Accountability will be the name of the game. Retailers must have clear visibility into their inventory, a realistic timeline for the fulfillment, and a plan to communicate clearly throughout the order and delivery processes. Through transparency and execution, retailers can earn trust with their customers and build the potential for future loyalty."

The survey polled 5,728 global consumers, including 512 in the United States, in September 2021. The Untold Insights survey asked consumers about their pandemic shopping habits and plans for holiday shopping. Unwrap your complimentary copy of the report.

Supply chain woes
Gift givers are worried they will be left holding an empty box as products may not be available or will take too long to arrive: 

• 28% of respondents are anxious that the products they want will be more expensive due to the scarcity
• 27% are worried desired products won't be available
• 17% are fretting that friends and family will be disappointed as they don't get the gift they want
• 16% are concerned that favorite holiday treats, like pumpkin spice lattes, won't be available

Santa's sleigh on delay
Seventy-two percent of respondents will have gifts delivered to their home (up from 64% in 2020), but many (22%) are worried shipping times won't meet their expectations and will be late – if they arrive at all. To ease their concerns, 65% of respondents say granular tracking of delivery status is very important.

• 36% of respondents say fast delivery determines whom they order from. Nine percent of consumers expect same-day delivery, 28% 1–2-day delivery, and 41% 3–5-day delivery.
• 30% of people say they will be outraged if shipments are delayed
• 38% worry gifts will arrive later than anticipated
• 25% are concerned gifts won't arrive at all
• 18% are willing to pay more to ensure faster or guaranteed delivery
• 55% are getting creative and saying they are very likely or might use an on-demand service like DoorDash to order last-minute gifts

Adding insult to injury, even if the package finally gets to its destination, 32% of people fear porch pirates may steal it!

In-stock or out of luck
Despite the challenges, being able to get their hands on the products they want will be a critical factor in how shoppers judge retailers this season:

• 40% agree that out of stock items constitute a lousy shopping experience
• 38% say they are attracted to brands/companies based on product availability
• 22% won't wait for a retailer to restock before they go somewhere else

Despite the lure of low prices, many consumers are not willing to wait for store holidays to get what they need. Just 37% of shoppers said they would participate in Amazon Prime Day(s) or Black Friday sales. A smaller number (26%) say they will take part in Cyber Monday events.

Buy your parents a gift card
When asked what gifts they plan to buy more of this year, gift cards emerged as the top contender:

• 34% plan to buy more gift cards (60% of Boomers and 44% of women said that is the gift they would also most like to receive)
• 26% each plan to buy more fashion apparel, home goods, and electronics
• 25% more beauty products
• 22% more footwear

Getting real on returns
They may tell you they love the gift, but nearly half of Millennials are really planning to return it. The good news for retailers; 76% of people said they are likely to buy other things when they come into a store to make a return:

• 41% of people plan to make some gift returns (67% for Millennials)
• 24% plan to return half to all their gifts (48% for Millennials)
• 60% of Gen Z* shoppers will return at least some gifts, while 90% of Boomers have no plans to return their gifts
• Men (50%) are more likely than women (30%) to make at least some returns

Delta not denting holiday shopping
Consumers seem less concerned about the pandemic, with more shoppers opting to buy in-store this year:

• 20% of consumers plan to shop mostly in-store, up from 15% in 2020; 45% are planning both in-store shopping and online shopping, up from 35% last year
• 72% feel comfortable shopping in an outdoor setting, while 66% feel comfortable shopping at an indoor mall
• When asked what makes them feel most comfortable about going out to shop, 66% said mask mandates; 15% vaccination proof for guests; 13% social distancing

Learn more about holiday shopping trends from Oracle Retail.

*Gen Z (18-24); Millennials (25-39); Gen X (40-54); Boomers (55+)

About Oracle Retail
Oracle provides retailers with a complete, open, and integrated suite of best-of-breed business applications, cloud services, and hardware that are engineered to work together and empower commerce. Leading fashion, grocery, and specialty retailers use Oracle solutions to anticipate market changes, simplify operations and inspire authentic brand interactions. For more information, visit our website at www.oracle.com/retail.

About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at oracle.com.

Trademarks
Oracle, Java, and MySQL are registered trademarks of Oracle Corporation.

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SOURCE Oracle

FAQ

What percentage of Americans are starting holiday shopping early according to Oracle's study?

52% of Americans are beginning their holiday shopping early.

How many consumers are worried about shipping delays this holiday season?

22% of respondents expressed concern about shipping delays.

What is the primary concern for consumers regarding holiday gifts this year?

Consumers are primarily concerned about supply chain issues and product availability.

Which age group is most likely to purchase extra gifts due to potential delays?

44% of Millennials plan to purchase extra gifts.

What does the Oracle Retail survey say about the importance of product availability?

40% of respondents agree that out-of-stock items create a poor shopping experience.