Monday Musings: December 6, 2021

Dec 06, 2021


Public Trust Credit Team
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Holiday shopping season shows improvements from 2020

With the holiday shopping season well underway, early reports indicate a rebound from last year’s season albeit with some modified habits. According to data provided by Sensormatic Solutions, Black Friday traffic increased approximately 48% from last year but still trailed 2019 traffic by 28%. In preparing for the second holiday season during the ongoing COVID-19 pandemic, many retailers opted to initiate holiday sales earlier than pre-pandemic norms, resulting in a not-so-concentrated spending peak as in years past. Not only are shoppers adapting to the new environment, but supply chain and related shipping concerns have motivated shoppers to purchase early to avoid missing out on highly sought-after goods. A survey by Sensormatic Solutions revealed roughly 65% of U.S. consumers plan to shop in-store this season to avoid potential shipping delays.

Data provided by Adobe as part of the Adobe Digital Economy Index revealed that consumers spent approximately $10.7 billion on Cyber Monday (the Monday following Thanksgiving), down 1.4% or roughly $100 million less than 2020 Cyber Monday figures ($10.8 billion). Further, total spending for consumers increased from last year with the final price point of their shopping carts increasing 13.9% on Cyber Monday, revealing shoppers are buying larger ticket items with inflation adding to some of that composition. The National Retail Federation (NRF) anticipates holiday sales to increase this year between 8.5% to 10.5% ($843.4 billion and $859 billion) for all of November and December; within that total, online and other non-store sales are expected to increase between 11% and 15% ($218.3 billion and $226.2 billion) driven by e-commerce. Overall, the trend looks promising compared to 2020 as consumers and retailers adapt to the dynamic environment. 

All comments and discussion presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. The information presented should not be used in making any investment decisions. This material is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses.

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