Prime Day Sparked Holiday Shopping
Amazon Prime Day was a hit and helped to kick off the holiday shopping season in robust fashion, according to new research from Deloitte.
Deloitte’s InSightIQ team analyzed consumer spending data from the first three weeks of October to better understand consumer behavior and help shine a light on how consumers are making their holiday purchases this year.
The report found that sales surged during the week of Oct. 11, driven by Amazon Prime Day and other retail promotions, recording a 50% increase in online sales year over year. Also, major promotional events, including Prime Day, resulted in a 6% year-over-year spending increase across in-store and online. Not only did spending increase, but also the number of people visiting retailers’ digital sites. During the third week of October, visits increased 63% year over year, and the number of unique visitors increased 47%.
Deloitte also found that online purchases are continuing to increase year over year, with the pandemic only heightening the trend. Online sales during the first and second week of October were up 25% and 24%, respectively.
The report predicted that traditional and online-only mass merchants will likely win this holiday season. Throughout the first three weeks of October 2020, consumer spending at these stores was up between 10% and 30%. During the October digital promotional events, retailers received a significant spending bump due to likely purchases of toys/games, electronics and sporting goods, and other items, signaling an early start for these traditional holiday categories.
As for the upcoming weeks, Deloitte found that 61% of consumers plan to begin shopping before Thanksgiving. Typically, those who start their holiday shopping before Thanksgiving plan to spend more, with an expected average spend of $1,537 per household.
“The InSightIQ analysis confirms that retailers’ strategy to accelerate holiday shopping was successful,” said Jeff Simpson, leader, InSightIQ, and principal at New York-based Deloitte Consulting LLP. “During Prime Week, major retailers’ online promotions drove the share of digital shopping even higher and helped jump-start the shopping season this year as shoppers purchased items traditionally associated with the holiday season, including toys, games, electronics and sporting goods.”