How Retailers Can Prepare for the 2021 Holiday Season

How Retailers Can Prepare for the 2021 Holiday Season

Will there be a return to a pre-Covid holiday season? Yes, and no. Shoppers are coming back to stores – so the holiday season will be more omnichannel than it was in 2020. But shoppers now face another set of challenges that could once again make the holiday season seem different than it was in the past – namely a global supply chain bottleneck that will likely cause product shortages and higher prices. Here are a few ways retailers can prepare:

1 Buckle Up

The pandemic has taught us that even in times of uncertainty, people will spend. Granted, they might spend money on different things and in different ways (such as adopting online more aggressively). But they will spend.

This holiday season, be prepared for a holiday spending surge. Don’t let negative news about the Delta variant convince you otherwise. According to Deloitte, consumers will spend 9 percent more this holiday season compared to 2020.

But here’s the rub: with increased spending, consumers may experience increased levels of frustration. Because of the global supply chain crisis, consumers may encounter product shortages and higher prices. And they may not understand why, either, which could create a backlash against retailers, fair or not. Retailers can mitigate against the disappointment somewhat by relying on your website, Google My Business listings, and other points of contact to discuss the inventory shortage and its potential impact. But that doesn’t mean consumers will notice your efforts.

What can a retailer do, then? For one thing, be ready for an uptick in negative reviews, and be ready to respond. Retailers should also also be ready to offer top rated alternatives to products out of stock as this example shows:

Inventory on a website

At the same time, consider how your ad copy might encourage shoppers to get out in front of shopping for the holiday season. Make sure they understand the advantages of tapping into your fulfillment options to encourage purchases. Consider tools such as free and fast shipping annotations to encourage early shopping. But just the same, many consumers will continue the time-honored tradition of putting off their holiday shopping until the last moment, and because of the product shortage, they’re going to be in for an unpleasant surprise.

2 Be Ready for a Multichannel Experience

Shoppers are ready to come back to physical stores. According to Google, as of mid-August, 70 percent of U.S. shoppers are buying the majority of the items they need in stores, compared to 61 percent in June. And they’re spending online, too: U.S. ecommerce sales continue to rise. Here’s what this means:

  • Keep online advertising for online purchase and fulfillment strong. The surging online behaviors are not going away.
  • Welcome people back to stores. Let shoppers know your stores are open, and in your ad copy, play up a positive and warm in-store experience. Your stores may not be quite ready to offer in-store events to the extent you did pre-pandemic days, but neither will they be empty. Consider options such as local inventory ads to promote items available for purchase in store.
  • Continue to plan for a hybrid digital/in-store Black Friday that extends far beyond the actual date of Black Friday. This trend pre-dated the pandemic. The difference between 2021 and 2020 is that more shoppers will be willing to experience Black Friday in physical stores (although Thanksgiving Day shopping won’t surge like it has in recent years with big retailers announcing closures that day).

3 Connect Mobile to the Entire Shopper Journey – Online and Offline

The rise of mobile commerce shows that consumers are comfortable using their mobile phones to search for merchandise and pay for it. What was different about 2020 is that people relied more on their mobile phones to order merchandise for curbside pick-up, which made retailers learn (quickly) how to manage the interplay between order placement and pick-up at curbside. By now, retailers need to go beyond managing mobile efficiently; they need to consider ways to create an even better mobile experience through creative ad copy online and excellent follow-through for curbside pickup.

Contact True Interactive

To maximize the value of your holiday shopping ad campaigns, contact True Interactive. We help our clients create effective online advertising all year-round, including the holiday season, and we understand the nuances of creating effective holiday ad campaigns.

Photo by freestocks on Unsplash

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