Seattle is still celebrating the holidays in 2020 | Deloitte holiday retail survey

As we prepare for the winter holidays, I find myself with an immense sense of gratitude for the family and friends that enrich my life every day. Our holiday traditions look and feel a lot different this year – they are certainly much more virtual –yet the spirit of the season remains. I know and am glad my fellow Seattleites feel the same way.

Along with my holiday celebrations, I look forward to the launch of Deloitte’s holiday retail survey every year. Currently commemorating its 35th edition, Deloitte’s holiday survey captures the year’s holiday shopping trends from the consumer’s perspective – an invaluable resource and data set for both retailers and consumers, especially in this unprecedented environment.

A few weeks ago, I had the pleasure of speaking with my friend and colleague Alana Hoskin, Principal at Deloitte & Touche LLP, to gain her insights on this year’s holiday retail survey. Alana is based in Seattle and specializes in the retail sector – I always appreciate her perspective on how shoppers are approaching the holiday season nationally and locally.

Thomas: I’m excited to review the findings with you, Alana. What are the top insights in this year’s survey?

Hoskin: Thanks Ed, looking forward to sharing the insights we have for this year.  As I’m sure you can imagine, COVID-19-related anxiety is expected to translate into cautious spending in Seattle. Although surveyed Seattle shoppers expect to spend $1,591 per household during the holiday season this year (higher than the national average of $1,387), two in five shoppers expect to spend less year-over-year largely because of concerns around the economy. For 1 in 3 shoppers, household finances have deteriorated since last year, and shoppers’ outlooks for the 2021 economy are the weakest in years – 54% believe the economy will remain the same or weaken compared to its current state.

59% of Seattle consumers feel anxious about shopping in-store this holiday season; unsurprisingly, many are shifting their holiday shopping to online and contactless options. Aiming to avoid crowds because of COVID-19, surveyed Seattle shoppers say they’ll spend 69% of their budget online. Not surprisingly, internet retailers are the most popular shopping destination by a wide margin, with Seattle consumers at 65% (nearly double the responses received for mass merchants at 36%).

Finally, we found that surveyed Seattle consumers prefer early shopping and bigger buying. Early shoppers – those who plan to begin shopping before Thanksgiving Day – plan to spend the most this year, with an average spend of $1,933. Approximately 40% of Seattle shoppers expect to begin shopping after Thanksgiving Day and spend $1,088 per household, or $845 less than their early counterparts.

Thomas: How is COVID-19 affecting the holiday shopping season?

Hoskin: I think many Seattle area families and individuals are feeling the effects of COVID-19, and it’s coming through in the shopping trends we saw in our survey. For example, spending on experiences is projected to outpace spending on gifts. Seattle shoppers are expected to spend $623 this year on experiences, which, when it is safe to do so, willinclude entertaining at home and socializing away from home. Total gift spending is projected to be less at $480.

This change in spending patterns, the anxiety around in-store shopping, the accelerated shift towards online channels, and worsening financial situations reflect the realities of holiday shopping amidst a global pandemic.

Thomas: On a lighter note, what are the top gifts on consumers’ lists this year?

Hoskin: I always think this is a fun question. 50% of Seattle consumers plan to buy clothing & accessories as gifts this holiday season. Other top gift categories include gift cards/certificates (42%), electronics and accessories (41%), and food and beverages (40%).

These gifts are not just for others – half of surveyed Seattle consumers are likely to purchase gifts for themselves while holiday shopping. Top items people plan to buy for themselves include food & liquor (48% of shoppers), clothing and accessories (43%), and electronics (39%).

*The Seattle study was conducted online – polling a sample of 403 consumers – between Sept. 9-15, with a margin of error of plus or minus 4.1 percentage points.

Click here to learn more about the 2020 Deloitte holiday retail survey and explore this year’s findings. Connect with Rod Sides, vice chairman, Deloitte LLP, and U.S. retail, wholesale and distribution leader, and Stephen Rogers, executive director, Deloitte Insights Consumer Industry Center, Deloitte LLP, here on LinkedIn.

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