Top 3 Holiday Retail Trends Determine Look of Main Street in 2021
If you work in retail, then you know now is the time to stock up on inventory to prep for the big holiday season. Only this year, that season is looking a lot smaller.
We asked our retailers how much business they anticipate as we head into the holidays and how they plan on meeting the demand. And, unsurprisingly, they told us this year is looking rough—nearly 70% anticipate less sales than last holiday season and 33% of those think their sales will decline by 50% or more. But they need an estimated 64% of your 2019 revenue to stay open.
If you do the math, that means over 35% of small businesses in retail are at risk of going under.
So, what happens if your local retail stores can’t make it this year? What does Main St. look like in 2021? And what can we, as small business owners and consumers, do about it?
Top 3 Retail Trends to Watch Leading into The Holiday Season
Here are 3 trends we're watching to see how this upcoming holiday season will turn out. Once we know the outlook, we can work together to do something about it.
1. Retailers are ordering less inventory and having a harder time finding what they need from suppliers
At this point, we already have a clear sign on this trend. Most retailers have ordered or know what they are going to order for the holidays.
According to the survey of over 1,300 retailers:
- 59% plan to spend less on inventory
29% are purchasing less than 50% of what they bought in 2019 - 40% were finding it difficult to get the inventory they need in time
2. Seasonal hiring will take a hit
In 2019, there were over 530,000 temporary jobs that opened up during the holiday season. These jobs are important for two reasons: 1. Many folks rely on them to make it through the end of the year, and 2. Those jobs help stimulate the economy, which we desperately need.
There’s just one problem: Most retailers aren’t sure if they can take on temporary staff this year. In fact, 63% of business owners felt it was too soon to know if they could bring on the extra help. So we'll keep checking in on this trend over the coming months.
3. Consumer behavior has yet to rebound
When coronavirus hit in March and many local stores closed, consumers started buying more from the big online stores like Amazon who could offer quick delivery with little human contact.
And that shift left many small businesses hurting, an impact that most of you are still experiencing.
According to our data,
- 90% of all businesses are now open.
- But 72% of you are facing financial challenges due to the pandemic
- A top concern is customers feeling safe enough to return.
- 65% of businesses don't see a meaningful decrease in Covid cases in 2020.
What Happens to Our Main Streets is Up to Us
According to the survey, 92% of retail businesses have adjusted their business models to try and adapt to the new normal. From adding contact-free pickup, delivery, and online capabilities, they’re trying to make it safe and easy for consumers to continue to do business with them.
While additional governmental relief would be welcomed by these businesses, what they really need is for consumers to return.
So, how is your community coming together to tackle this challenge? Are you working together to leverage your social media and email marketing campaigns to get the word out?
- Want more data? Take a look at our August Road to Recovery Report for a complete picture of small biz recovery.
- Find out how to kickstart recovery in your community.
- Embracing the #ShopLocal Movement: How Small Businesses Market Themselves and Grow
Comments (1-10)
No personal contact which makes it difficult building trust with clients .For over 30 years i have been dealing with the public directly, it is difficult adjusting to a robotic environment.I love communicating one to one with my clients on a personal and professional level understanding their needs and expectations. But adjust we must
The economic impact is worse than covid. We need to make our own choices. Media and the far left have created fear and are destroying our country.
We are working very hard to keep our customers happy on the promotional end and on the bridal end. We still have brides needing to pick up dresses that have postponed their weddings which is a drag - but we will make it work and I am hoping for my premium sales. I did lose a huge account in my other consulting business in publishing due to the pandemic so that was a huge hit to our bottom line - but we are doing the best we have with what we have going on.
Singing person to person sends 10 times the molecules than talking so masks and shields will not provide safety for private lessons in my physical studio. Outdoors is not an option in the climate I'm in for some time, plus if one has neighbors, it might not be appreciated. My only choice is online for the foreseeable future into 2021. If we had more total compliance with the masks and physical distance, we would be in a better position as a society. The evolving scientific evidence, and other countries' experiences with better adherence to the precautions, should have been more respected. And it is clear we would have had fewer tragic deaths and disruptions. As healing and physically, emotionally beneficial as music is, many just can't yet afford to go back to lessons. I'm hoping that will change. Music can be so joyful and fulfilling, especially in dark times.
There's not enough space here to type out what I'd like to say, express, feel about this "New, uncertain norm".
We all knew from "history, great grandparents, et al, that the crash of 1929 was horrific & decimating to the United States, the world. "
This is absolutely uncharted territory for all of humanity. Things WILL NOT just start changing overnight after 11/4.......we don't have a crystal ball.
So Pray. If you're not sure how.....learn.
One Day at a Time........
We have stayed busy, however seems like we are working twice as hard - to earn less money. Unavailable manufactures products & supplies are our worse enemy. Telephone hold times are 2nd worst problem these days.
Our business has remained constant at 75% of normal levels. Many customers are afraid to eat out and our takeout business isn't making up the shortfall. We are concerned that 6-foot safe distancing will reduce our cold-weather capacity once outdoor dining is closed. We are hanging in there and grateful that we are at 75% business unlike many others.
Business has returned , not at the level as before Corona . Wish more people would take action and do their parts to stop the spread . Some of my clients believe that we don’t need to wear masks on the jobs .well make in customers keep us safe , masks on us keeps you safe . We don’t know if you or we picked up the virus at the gasoline station or market , our material suppliers or from customers family that don’t protect themselves . We insist our clients wear masks if we are working in their homes because we have comorbilites, we also want to protect our clients and their families .
We must make sure the pandemic is being handled correctly on the federal level before we can safely open our businesses. My business selling art is dependent on first hand encounters with the public, but a selfish attitude of no masks and no social distancing can have greater long term effect on health and economy.
We are feeling our way through all this.. day to day. and concerned about the upcoming election