For the first time, online holiday spending is expected to exceed in-store spending. So finds the 2017 Holiday Survey from Deloitte, the 32nd annual holiday survey conducted by the professional services firm.
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The change in shopping preferences has implications for employment in the retail industry and beyond.
Shopping Trends
This year, Deloitte survey respondents say they intend to spend 51 percent of their budget online, compared with 42 percent in-store. In last year’s survey, online and in-store were equal, at 47 percent each. Until this tie in 2016, people planned to spend more in-store.
Higher-income households are even more inclined to buy online: Those earning more than $100,000 per year expect 57 percent of their spending will be online and 39 percent in-store.
The areas where consumers say online shopping beats in-store, from among 28 retail formats, are:
- Ease of searching
- Products – high quality/trusted
- Variety of products/styles available
- Availability of hard-to-find/unique products
- Variety of delivery options available
Technology has made shopping anytime/anywhere possible—and from a retailer’s standpoint, selling is possible without a sales staff. Consider that the probability of converting a desktop/laptop shopper to a purchaser is 75 percent.
Mobile also has an impact on shopping trends. Deloitte finds the probability of converting a smartphone shopper to purchaser is now 59 percent, compared to 43 percent last year.
What’s more, use of mobile for shopping is widespread among all generations. The top three reasons shoppers use smartphones are to browse online, track order status, and check/compare prices.
Impact on Employment
The increase in online holiday shopping has already had an impact on seasonal hiring.
Hourly job site Snagajob cites “a fast growing range of fulfillment center jobs” this year. At the same time, UPS, FedEx, USPS, and others are struggling to fill open positions to meet delivery demand.
It’s important to note that online shopping isn’t without retail staff, entirely. Customers frequently have questions about merchandise and rely on call center staff to provide answers, via phone or chat.
Given the increase in online holiday shopping, seasonal workers will be needed for all these positions—this year, and in years to come.