Adobe has released its predictions for the 2020 holiday season, between November 1 thru December 31, and online retailers are set to score big.
Adobe is predicting record-breaking online sales, totaling some $189 billion. This represents a 33% year-over-year increase. According to the company, this is the equivalent of two years’ worth of growth packed into those two months.
Should the government approve another round of stimulus, spending would be driven up further, likely passing the $200 billion mark. If this happens, it would be a 47% increase.
“As retailers adapt to consumers’ new behaviors in this pandemic, we expect earlier discounts, more shipping and pick-up options and uncertainty around in-store purchases to drive this year’s online holiday sales to record highs,” said John Copeland, head of Marketing and Customer Insights at Adobe. “This year is unlike any in the past, and for the first time we are no longer referring to peak holiday sales as Cyber Week – it’s now Cyber Month.”
While large e-commerce entities may seem to be the biggest beneficiaries at first glance, in reality it is small retailers that will benefit most. Accord to the report, small retailers will see their revenue increase 107%, vs 84% for their bigger rivals.
Curbside pickup will also grow in popularity, with BOPIS (buy online, pick up in store) expected to account for more than 50% of orders at retailers offering the service.
Although the pandemic may be forcing holiday shoppers online in record numbers, shoppers may develop a taste for the low-hassle benefits of online shopping and BOPIS. If so, it’s a safe bet that many shoppers’ behavior may be permanently altered over the next two months.