The holiday shopping season usually gets off to a frenzied start, with stores offering deep discounts on everything from toys to electronics. But this year, the traditional start of the annual shopping spree seems to have been significantly quieter, as shoppers stay cautious due to the economic uncertainty caused by the pandemic.
Despite the traditional black friday discounts at retailers, shoppers appear to be refraining from making their holiday-shopping purchases. According to consumer research by Adobe Analytics, the online retail sector As of November 18th, had seen just a four percent increase compared to 2019. This means that consumers are investing far less money into the Christmas shopping season than they have in prior years.
The reason for this consumer reticence is obvious: the uncertainty caused by Covid-19. In 2020, the world’s economy has been severely affected, with millions of people facing unemployment and financial stress. In these times of financial uncertainty, people naturally are nervous about spending more money than necessary.
This means that shoppers are being far more judicious in their holiday shopping decisions. They are shopping for gifts, but often opting for smaller, more cost-effective choices than in past years. Smaller local businesses, in particular, are seeing the benefits of this trend, as people choose to buy more homemade and artisanal goods to save money.
Ultimately, it appears that the holiday shopping season has gotten off to a slow start this year. Shoppers are still taking part in the tradition, but in a more cost-conscious and selective manner. That said, it is likely that the season will pick up some momentum in December, as people start to adjust to the new economic reality and focus on being together during the holidays.