Will Holidays be Naughty or Nice for Retailers? Consumers Dish on Shopping Plans

Rhea-AI Summary

Oracle's recent Retail survey reveals shifting shopping habits due to the pandemic. About 20% of consumers favor in-store shopping this holiday season, while 47% plan a mix of online and offline purchases. Despite the pandemic, 58% expect to spend the same or more than last year. Reductions in return plans drop from 77% to 38%. Key insights include a preference for gift cards and a critical need for inventory to avoid poor shopping experiences. Concerns for safety are high, with 79% emphasizing mask-wearing and 82% valuing cleaning efforts.

Positive

• 20% of consumers plan to shop in-store this holiday season.
• 58% expect to spend the same or more on holiday shopping than last year.
• 38% of consumers plan fewer returns compared to 77% last year.
• 47% of consumers prefer home delivery, indicating strong demand for e-commerce.

Negative

• 47% cite out-of-stock merchandise as a major concern.
• 63% are unwilling to wait for out-of-stock items, risking lost sales for retailers.

REDWOOD SHORES, Calif., Oct. 26, 2020 /PRNewswire/ -- While the pandemic has caused a surge in online shopping, a new Oracle Retail survey shows that many customers are ready to venture back into stores this holiday season. Nearly 20% of shoppers surveyed plan to do most of their shopping in-store with 47% planning to split purchases between online and brick-and-mortar shops. Still another 16% plan to make it as close as the parking lot, opting to retrieve orders curbside. And, despite the challenging year, 58% of consumers expect to spend the same or more on holiday shopping than they did last year. 

Customers don't, however, want to deal with the hassle of returns. While last year, 77% of consumers planned to make at least one return, this year that number dropped to 38%.

"The holidays promise to test a retailer's ability to serve customers how and where they want to shop," said Mike Webster, senior vice president and general manager, Oracle Retail. "With customers shopping both online and in-store, and taking advantage of new retrieval options such as curbside pick-up and 'buy online pick up in-store,' retailers are going to have to be firing on all cylinders to meet customer expectations in an already difficult environment."

The survey polled 5,143 consumers in the United States, United Kingdom, Australia, China, Brazil, Mexico, Italy, France, Germany and the United Arab Emirates in September 2020 about their COVID-19 shopping habits and plans for holiday shopping. Unwrap your complimentary copy of the report here.

Holiday gift list
With travel limited and a desire to avoid returns, it was no surprise to see gift cards as a top holiday gift this year. Here is what consumers said they plan to spend more on this year:  

• 39% - of shoppers plan to spend more on apparel and necessities
• 29% - electronics
• 27% - gift cards
• 19% - sporting goods/hobbies
• 15% - luxury items (handbags, fashion, and jewelry)

"With more consumers avoiding returns, redeeming gift cards will be the next big opportunity for retailers to engage customers and extend sales post-holiday," noted Webster.

Out of stock, out of luck 
A lack of inventory will be the fastest way for retailers to end up on this year's naughty list. 

• 47% of respondents said out-of-stock merchandise topped their list for a bad shopping experience
• 63% said they weren't willing to wait for an item to be back in stock before trying another brand

"In the pandemic, many retailers' in-store stock was depleted or completely sold out," added Webster. "During the holidays it will be critical for retailers to fill the shelves and use their physical locations both to serve shoppers and as fulfillment centers to handle online orders and get shipments out to customers quickly."

Malls live, but safety precautions and masks are crucial
While there has been much discussion about how indoor malls will fare in the pandemic, shoppers were mostly unconcerned about the location as long as the proper safety precautions were in place.

• 18% of shoppers felt safest in an indoor mall; 24% in outdoor shopping venues; and 58% were fine with either with the proper safety precautions.
• 79% said it was important to see staff and other customers wearing masks.
• 82% said it was important to see visible cleaning efforts.
• 66% of shoppers noted contactless checkout was important.
• 76% noted reduced occupancy levels in stores as key.
• 39% of shoppers also said a lack of social distancing would cause them to have a bad shopping experience.

Consumers get social with new brands
As consumers spent more time shopping online during COVID-19, the survey found that 48% had discovered new brands on social media. This is a clear signal to retailers that upping social advertising this holiday season could impact sales.

• 65% of shoppers discovered a new brand via Facebook
• 53% via Instagram
• 49% via YouTube
• 29% via TikTok

The delivery nightmare before Christmas
While retailers experiment with alternative retrieval options, home delivery is still the top choice amongst consumers. This could present a delivery nightmare as shipping times will naturally get extended due to volume. To ease anxiety, 73% of consumers said real-time updates on item location throughout the delivery process is important. Here's how shoppers plan to retrieve online purchases:

• 66% of respondents prefer home delivery.
• 18% will buy online and pick up in-store (BOPIS).
• 16% will buy online and pick up curbside.

"Every parent nervously waiting for their child's holiday gift to arrive will attest that transparency from retailers is an absolute must," noted Webster. "Brands have to have the systems in place to communicate with customers every step of the way – from ordering through to delivery."

Moving from browser to buyer
When shopping online or in-store, consumers cited these reasons for moving from a browser to a buyer:

• 55% a great price.
• 49% special offers or discounts (such as buy one, get one free).
• 25% immediate availability and fast shipping time.

To learn more about how Oracle Retail is helping customers and retailers have a happy holiday season, visit: www.oracle.com/retail

About Oracle Retail
Oracle is the platform for modern retail. Oracle provides retailers with a complete, open, and integrated platform for leading retail solutions, cloud services, and hardware that are engineered to work together. Innovative retailers use Oracle solutions to pivot to customer and to drive agility across the business. Oracle Retail customers can deliver an authentic customer experience while protecting their people, processes, brand, and customers. For more information, visit our website www.oracle.com/retail.

About Oracle
The Oracle Cloud offers a complete suite of integrated applications for Sales, Service, Marketing, Human Resources, Finance, Supply Chain, and Manufacturing, plus Highly Automated and Secure Generation 2 Infrastructure featuring the Oracle Autonomous Database. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.

Trademarks
Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

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SOURCE Oracle

FAQ

What does Oracle's survey say about consumer shopping habits for the holidays?

Oracle's survey indicates that 20% of consumers prefer in-store shopping, while 47% will shop both online and offline.

How do consumers plan to spend this holiday season according to Oracle?

58% of consumers expect to spend the same or more compared to the previous year.

What are the key concerns for shoppers this holiday season?

Key concerns include out-of-stock items, with 47% citing it as a major issue, and safety measures, as 79% want visible mask-wearing.

What percentage of shoppers plan on making fewer returns this year?

Only 38% of consumers plan to make at least one return, down from 77% last year.

How do consumers prefer to retrieve their online purchases according to the survey?

66% prefer home delivery, 18% select in-store pickup, and 16% opt for curbside pickup.