PATTISON PERSPECTIVES
A New Look | Black Friday 2020 Consumer Insights
minute read
Nov 5, 2020 | by Thiago Macedo, Research Analyst, PATTISON Outdoor Advertising
More than ever, Canadians are looking for the best deals when shopping for products, and services and events such as Black Friday will be very welcomed. Indicators such as impressive Back-to-School spend show that Black Friday 2020 will continue to be a strong event for retailers and consumers. However, Black Friday 2020 may differ from what consumers have become accustomed to. New buying modalities, the importance of a good shipping experience and the support of local businesses are some of the new trends we see shaping this year’s upcoming Black Friday shopping event.
CONSUMER SPENDING
While economic concerns are elevated, consumer intention to purchase at retail is growing in comparison to earlier stages of the pandemic. This presents an optimal opportunity for brands and businesses to increase their advertising efforts in order to generate awareness and preference for the upcoming Black Friday and the holiday shopping season.
Canadians are seeking good deals in an effort to maximize their budget. 41% of Canadian consumers declared in April that they would wait for products to be on sale before buying them.
Canadians have been using their debit and credit cards more over the past months. Spending in early September was similar to pre-pandemic levels and points to a sign of economic recovery.
Since household finances were impacted because of the pandemic, Canadians are more likely to take advantage of promotional dates to purchase products and services they currently need. Monthly data through August suggest Canadians still prepared themselves and their children for the return to school.
Canadians able to work from home during the pandemic were found to have saved on expenses such as fuel, travel, events and gatherings. Thus, it’s likely that some consumers may treat themselves in the upcoming Black Friday and holiday season as a form of “retail therapy”.
The survey from the Canadian Payroll Association shows 62% of working Canadians were able to save more than 5% of their working income in 2020, compared to 59% last year.
According to Daniel Bachman, a senior international macroeconomic forecaster and modeler from Deloitte US, reduced spending on pandemic-sensitive services such as restaurants and travel may help bolster retail holiday sales.
Consumers have become more experimental than ever and their brand loyalty has decreased. They are trying new brands, new stores and new shopping methods. Better prices and promotions have been the main reasons for them to try a new brand. This experimentalism and enhanced brand competition present an opportunity for brands to leverage advertising as a point of differentiation with distinct, relevant and creative messaging.
TRENDS THAT WILL SHAPE THE 2020 BLACK FRIDAY AND HOLIDAY SHOPPING SEASON
Research for promotional dates and holiday shopping will start earlier
Canadians are still respecting social distancing rules and are mindful of an imminent second wave. This will have an effect on the holiday shopping calendar given the fact that consumers will be planning to shop ahead of time to avoid crowds and sell outs. In an effort to stay safe and comfortable while shopping, consumers will be more likely to do it online or before going to physical stores, they will probably check schedules, confirm stock levels and shop during less volume-heavy times.
Source: Google commissioned Ipsos COVID-19 tracker, CA n= ~730 18+ online consumers who plan to shop for the holidays. June 25-28.
According to the Vividata May-June, 2020 COVID-19 Interim release, the number of Canadians that declared personally participating in Black Friday was 47%, compared to the 27% reported in the Vividata Spring 2020 release – an increase of +74%!
Curbside pickup will allow Canadians to have the “Black Friday Experience”
Curbside pickup will also play an important role in the Black Friday experience. People have been using curbside pickups for months now and this new way of buying has the potential staying power when the pandemic is over. According to Google commissioned Ipsos COVID-19 tracker – June 2020, 56% of Canadian consumers think buying online and picking up in-store or curbside will be a beneficial way for them to shop even when there are no restrictions. 50% of Canadian shoppers would also use self-serve checkouts if more retailers offered them.
Source: Google commissioned Ipsos COVID-19 tracker, CA n=1000 online consumers 18+ per market. June 18-2.
According to Google Global English survey, +3000% searches for “curbside pickup” have grown globally year over year.
In fact, according to Google commissioned Ipsos COVID-19 tracker-June 2020, 50% of Canadian shoppers that plan to shop in the upcoming holiday season said they’ll choose to shop at stores that offer contactless shopping, with 44% stating they will use options to buy online and pickup in-store or curbside.
The rise of online shopping and new shopping behaviours
As a consequence of COVID-19 several changes in purchasing behaviours occurred, and some are expected to continue throughout the holiday season and possibly remain post-COVID-19. Year over year, online shopping more than doubled and retail e-commerce sales reached a record $3.9 billion in May, 2020 according to StatsCan.
According to over 150 surveyed brands for the Shopify Plus 2020 – Black Friday and Cyber Monday report, their biggest anticipated challenge is ensuring shipping carriers will be able to deliver the orders on time.
Canadians are helping their local community during the pandemic
Different shop local movements surfaced across Canada during the pandemic and this is a trend that has the potential to benefit small business owners in the upcoming Black Friday and holiday shopping season.
An incredible 70% of Canadians who plan to shop for the holidays will shop more at local small businesses. This is a great opportunity for small and medium business owners to harness the power of Out-of-Home advertising to reach consumers at high-traffic intersections, at key points of interest or in close proximity to their storefronts.
Being Canada’s leader in Out-of-Home advertising, with over 24,000 displays in local markets across the country, PATTISON Outdoor Advertising offers business owners and brands the best Outdoor locations to reach shoppers at these critical outdoor touch points along the consumer journey.
Contact us to learn more about driving in-store and online traffic during the holiday season with PATTISON Outdoor Advertising.
Sources:
IMI Next Wave 10 – Global Recovery Update_20200929
GWI coronavirus findings April 2020 – Multi-market research (Release 9) – Release date: April, 29, 2020
COVID Consumer Spending Tracker – September, 21, 2020.
The 12th Annual Canadian Payroll Association Survey of Working Canadians. https://www.payroll.ca/PDF/News/2020/2020-NPW-Press-Release_EN.aspx
https://risnews.com/2020-holiday-retail-forecasts-and-predictions
StatsCan. https://www150.statcan.gc.ca/n1/pub/45-28-0001/2020001/article/00064-eng.htm
McKinsey & Company, Survey: Canadian consumer sentiment during the coronavirus crisis. September, 17, 2020. https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-canadian-consumer-sentiment-during-the-coronavirus-crisis
Vividata COVID-19 Interim Releases (Mid-March/April 2020) & (May/June 2020)
Shopify Plus 2020 – Black Friday and Cyber Monday Outlook report. https://protect-us.mimecast.com/s/NNQMCv2k7zsLZP8CQJvNm