Holiday retail 2021: In-store shopping is back, though it’s complicated
‘I think people want to be out. I think they really missed the store environment,’ said one analyst about consumers’ desire to have a traditional holiday shopping experience this season.
By MARTHA ROSS |
PUBLISHED: November 22, 2021 at 11:47 a.m. | UPDATED: November 22, 2021 at 11:49 a.m.
Get ready to wade through crowds of shoppers on Black Friday, over Thanksgiving weekend and through the rest of the holiday season.
Retailers in the Bay Area and across the country say people are eager to flock to shopping centers, downtowns and small businesses in the coming six weeks. After spending last year in pandemic lockdown, they want to take in all the lights, deals and bustle of humanity that marks a traditional holiday shopping experience, analysts say. Plus, Santa is back at malls for in-person visits and photos.
Certainly, this season’s retail picture isn’t entirely rosy, with concerns about inflation, pandemic-related supply chain disruptions and labor shortages, and a series of brazen group robberies over the weekend at high-end retailers in San Francisco, Walnut Creek, San Jose and Hayward.
But in-store shopping, combined with robust online sales, could set a record $859 billion in sales, the National Retail Federation predicts.
“I think people want to be out. I think they really missed the store environment,” said Katherine Cullen, senior director of industry and consumer insights at the National Retail Federation.
“Think back to last year, when people were canceling Thanksgiving plans and moving things virtually,” Cullen continued. “There was a lot of fear and uncertainty. This year, people are gathering with family, reviving their traditions, and getting out and shopping is part of that for many consumers.”
High vaccination rates in the Bay Area, along with people’s willingness to comply with public health orders on wearing masks indoors, have helped people feel comfortable about going to stores, said Kirthi Kalyanam, a business professor and director of Santa Clara University’s Retail Management Institute.
Online shopping, which became routine for people during COVID-19, also is expected to be a big driver of sales, particularly on Black Friday and Cyber Monday, said Vivek Pandya, lead insights analyst for Adobe. But shipping delays for online purchases may drive people into stores, as they want to make sure they have their gifts in hand.
“On top of pent-up demand, there are many other reasons why in-store shopping is on everyone’s list this year: from longer expected shipping times to limited inventory due to global supply chain problems and manufacturing shortages,” said Tracy Dietlein, senior marketing manager for Broadway Plaza in Walnut Creek.
This “pent-up” demand is likely to boost Black Friday’s reign as the busiest shopping day of 2021, according to an NRF survey. Last year, crowds at stores and malls were “light” and excitement was “muted,” retailers said. But this year, some two-thirds of the estimated 108 million people shopping on Nov. 26 — most big stores will be closed on Thanksgiving Day — plan to do so in stores, the survey shows.
“Black Friday shopping is also a social event, and that’s definitely something that I think people missed out on last year and are looking forward to this year,” said Christine Kupczak, director of marketing for Hillsdale Shopping Center in San Mateo.
It’s not clear whether these expected crowds will be massive enough to replicate the frenzy of Black Fridays past, when shoppers lined up overnight for early morning door-busting deals.
Stores in Broadway Plaza and Valley Fair in Santa Clara also have never featured door-buster deals. “While we don’t expect to see a rush to the doors on Black Friday, we do anticipate healthy crowds as our guests celebrate the return of this festive time of year,” said Karen Strack, senior vice president of customer and brand marketing at Unibail-Rodamco-Westfield, which operates Valley Fair.
le when the discounts become available.”