Q1 2021 is Going to be BIG: Here's Why

Creative Channel Retail Research: one in a series

Three Key Retail Trend Observations for the 2020 Holiday Season:

Q1 2021 Retail Insights

The 2020 holiday season is set to break all sorts of records this year. Online shipping has gotten a lot of attention recently – something we began discussing months ago – and one where we’ve seen a new phrase coined in the industry – “Shippageddon”. Here we see retailers like Best Buy, Target and others who have previously invested heavily in enabling and perfecting the Buy Online – Pick-up In Store (BOPIS) model, are now very well positioned to circumvent the bottlenecks created by the lack of capacity in the shipping industry and serve the needs of shoppers and brands as de facto distribution centers.

Related to shipping capacity, another trend is currently not receiving significant attention but will begin to become critical as we get into December: Limited Product Quantities. Since March, supply chains for manufacturers have been disrupted and the consequence for Holiday 2020 is that for many of the most in-demand and popular products, there will not be enough inventory capacity. So, what will shoppers do? When product is delayed or simply out of stock, we are going to see an incredible surge in Gift Card sales.

Shipping Delays combined with Out of Stock and a higher than expected return rate for Holiday 2020, are going to create additional demand for manufacturers’ products extended into Q1 2021. Brands prepared for Q1 with product on the shelf and demand generation in place are going to disproportionately win the share of the aforementioned consumers’ Gift Card wallets!

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