How much will consumers spend this year and where will they shop this season?
Beauty brands are pulling out all the stops to entice shoppers who, in the pandemic, may forgo giving experiences and instead exchange physical gifts—and that could be great news for beauty. But how will the economic uncertainty factor into their spending? Here’s a quick look at holiday retail forecasts from NPD, NRF and others.
According to NPD Group, consumers plan to spend an average of $691 during the 2020 holiday shopping season— less than last year’s anticipated holiday spending, but on par with 2018 plans.
According to the National Retail Federation (NRF), 60% of consumers say they plan to purchase holiday items online this year. Other top destinations include department stores (45%), discount stores (43%), and grocery stores or supermarkets (42%).
According NRF, 44% of shoppers plan to buy online and pick up in store—aka BOPUS (not to be confused with Bumpus, the family who let their dogs run wild in ‘A Christmas Story’).
"In this spirit of self-care and doing something good for ourselves, consumers may be more inclined to self-gift this year—because won’t we all want to congratulate ourselves for making it to 2021? But even beyond the self-gift, self-care related gifts for others are an opportunity as well. Brands and retailers need to make it easier for consumers to decide which beauty products to buy for everyone on their list, including themselves," said Larissa Jensen, iindustry advisor, beauty, NPD Group.