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BizReport : Ecommerce : August 19, 2021

Reports: Consumer spending up, changes retailers need to know

While overall consumer spending is up by more than 10% from 2019 levels, there is a way to go before all retailers and merchants see the light at the end of the COVID-19 tunnel. Here are the changes merchants and brands need to know about consumer shopping habits now.

by Kristina Knight

First, a bit of good news from Barclaycard. Their data shows an overall increase in consumer spending of 11.6% over 2019 spending levels, an indicator that shoppers' economic confidence is improving in the midst of a global pandemic. According to their data entertainment spending is up about 8%, the first increase since the pandemic shut many businesses down, and while overall travel spending is still down for airlines, travel agents, and even hotels, fuel spending is up by about 4%.

And while some spending is beginning to rebound, RTB House data shows where some significant changes have occurred. Their latest report shows that shoppers are in-store at later hours than before the pandemic, as they are still both sleeping in and staying up later. For fashion retailers, their peak hours are now between 11 am and 9pm. For online shoppers, a few things have changed as well.

• 76% of first time online shoppers visit merchant sites for 3-5 minutes
• Overall, shoppers are visiting fewer site pages per session than before the pandemic
• First time site visits were longer in 2020 than in 2019

Meanwhile, as merchants begin prepping for the upcoming holiday season, Shopkick data indicates that early remains key for online boutiques. According to their report 25% of American shoppers say they'll 'do most' holiday buying before Thanksgiving. Most say they'll spend roughly the same amount in 2021 as they spent in 2020. Other interesting findings from the report include:

• 61% plan to shop Black Friday, 67% plan to shop Cyber Monday
• 78% of Black Friday shoppers say they'll shop online, 36% plan to shop mobile
• 43% of shoppers say they 'make a majority' of purchases in physical stores this year, 57% say they'll shop the most on Amazon

"Consumers are eager to get their holiday shopping done this year, and they are ready to spend," said Dave Fisch, General Manager, Shopkick. "As retailers prepare for their biggest season, it will be imperative that they get an earlier start, improve their omnichannel and e-commerce capabilities, and offer the best deals on the traditional days consumers have come to love."

More Shopkick data can be accessed here.

Tags: Barclaycard, ecommerce, ecommerce tips, ecommerce trends, m:commerce trends, mobile commerce trends, mobile marketing, Shopkick

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