Consumer Behavior
Holiday e-commerce sales projected to surge this year
October 6, 2020
Holiday shopping will increase this year and feature a hefty jump in online sales, despite the coronavirus and shaky economic times.
In fact, according to Deloitte's annual holiday retail forecast report, e-commerce holiday sales will "surge," by 25% to 35%, when compared to the 14.7% increase in 2019.
E-commerce holiday sales are projected to generated between $182 billion and $196 billion.
Overall holiday spend will hit between $1.147 billion and $1.152 billion during the November to January time frame, according to a press release on the forecast.
"The lower projected holiday growth this season is not surprising given the state of the economy. While high unemployment and economic anxiety will weigh on overall retail sales this holiday season, reduced spending on pandemic-sensitive services such as restaurants and travel may help bolster retail holiday sales somewhat," Daniel Bachman, Deloitte's U.S. economic forecaster, said in the release. "E-commerce is likely to be a big winner because consumers have shown a clear movement toward buying online rather than at brick and mortar stores."
But the report also noted that upcoming holiday retail season will be marked by unparalleled uncertainty.
"This year, one of two holiday scenarios will play out. Regardless of the scenario, however, the consumer's focus on health, financial concerns and safety will result in a shift in the way they spend their holiday budget," Rod Sides, vice chairman, Deloitte LLP and U.S. retail and distribution sector leader, said in the release. "For retailers, this holiday season will continue to push the boundaries on the importance of online, convenience, the role of the store, and the criticalness of safe and speedy fulfillment."
