Shoppers are back, but virus fears remain
Americans more comfortable with in-store shopping were back out in greater force Friday, and battered retailers were more optimistic than they have been at any point since the start of the pandemic, which shuttered stores and wiped out sales.
But looming over an otherwise upbeat symbolic start to the holiday sales period — a time when some companies register more than half their sales — was the persistent threat that the coronavirus poses to public health and commerce. That anxiety took on greater urgency in recent days after evidence of a new coronavirus variant in South Africa prompted some countries to reinstate travel restrictions.
The emergence of the new variant was the latest hurdle for retailers who have been anticipating a holiday shopping season that is sure to be much more physically present than 2020 but not as carefree as it was pre-pandemic.
The Macy’s Thanksgiving Day Parade was massively expanded, with more floats and a longer route, though children under 12 were not allowed to participate in the parade itself. Big chains will offer certain festivities, like Champagne bars, that were missing last year. Gift ideas and decorations will feature more prominently in stores as retailers anticipate more people browsing and planning bigger gatherings.
“There’s a lot of pent-up energy to do things,” said Marie Driscoll, managing director of luxury and fashion at Coresight Research, an advisory and research firm. “Everything old is new again.”
But hallmarks of a changed season remain. Many stores were closed on Thanksgiving, and holiday hours at certain malls and chains will be shortened, in part because of a national labor shortage. And many people are bracing for a dearth of products like popular toys as “supply chain issues” becomes the refrain of 2021. There are also those customers who will stay away from stores, based on new habits adopted during the pandemic or ongoing concerns about the virus, and opt to shop online or using curbside pickups.
Driscoll said that signs of precautions would likely be visible throughout stores. “Retailers are going out of their way to make everybody
feel comfortable, so at your own discretion you’re wearing a mask; there will be cleansers everywhere; there are options for self-checkout to not necessarily have to queue up and wait in lines,” she said.
The retail industry is still recovering from a plummet in store shoppers last year. In November and December 2020, foot traffic to department stores plunged more than 30 percent from the prior year, according to data from Vince Tibone, a senior analyst at Green Street, a real estate analytics firm. That picture seems to be improving, though, with department store foot traffic down 9 percent in
October compared with October 2019, the data showed.
People are much more likely to make purchases when they are at a store than while browsing the store’s website, said Meredith Darnall, senior vice president in the retail division of Brookfield Properties, which oversees more than 130 malls. “The ability to touch and see and talk to somebody about the product is real. They also have add-on sales — you come in for the T-shirt, you’re likely to buy the denim.” Adding to the appeal of in-store shopping for retailers, she said, is the fact that return rates are much higher for e-commerce purchases, especially in apparel
and shoes.
Plenty of consumers seem eager to shop in person this year. The NPD Group recently surveyed more than 1,000 people about holiday traditions that they missed most in 2020 and hoped to return to this year. About 36 percent said they missed browsing retail stores, while 30 percent said they looked forward to returning to shopping in malls and the “Thanksgiving and Black Friday frenzy.”
The experience of shopping was drastically transformed last year as many people avoided lingering in stores and were discouraged from touching and testing products. Fitting rooms were closed or limited in many places. Makeup counters were not offering makeovers or samples of lipstick or perfume. Plastic partitions, hand sanitizer and reminders to socially distance peppered the landscape. Shopper events were downsized or canceled.
Stephen Arnold, president of the International Brotherhood of Real Bearded Santas, a trade group with more than 1,800 members, appeared at only a single tree lighting event last year. It was a frightening time, he said, particularly for a group of elderly men who are often overweight and have diabetes.
But this season, Arnold said, all five of his tree lighting ceremonies are back, including a splashy event that he loves at Graceland, Elvis Presley’s estate in Arnold’s hometown, Memphis, Tennessee. He plans to participate in more than 200 appearances, on par with his pre-pandemic schedule in 2019. At times, he may perform from inside a life-size snow globe like last year, and a sizable chunk of his events will be held virtually, but it’s a world apart from 2020.
“I think almost all of our Santas intend to work a great deal more than they did last year, and a much higher percentage, probably 65 to 70 percent of us, will return to what we consider some kind of normal schedule,” Arnold, 71, said. “I’m trying to be prepared for a season of relatively close contact.”
This week, Saks Fifth Avenue unveiled its holiday window display and 10-story-tall light show at its New York City flagship store. The retailer, which took a pause from its annual tradition of shutting down Fifth Avenue for a musical performance last year, returned to it this year with a performance by the Young People’s Chorus of New York City and an appearance from Michelle Obama. About 22 Nordstrom stores will have “immersive” photo booths.
At the flagship Bloomingdale’s on 59th Street, the store is offering fewer events than the 400-plus it held in 2019, but many more than 2020, when its limited activities were held outdoors. There will be more food and drink for shoppers this season, including Champagne and cups of espresso, though they are being handled more carefully than in years past. The store hosted a performance by Bebe Rexha when it unveiled its holiday windows this month but kept it to roughly 15 minutes and carefully managed capacity and spacing.
The imprint of technology on physical retail has never been starker. Bloomingdale’s is still offering dozens of virtual events in addition to in-store activities. Shoppers now expect the ability to see whether products are in stock before they head to stores and for associates to help mail them, free of charge, when they are not available, Driscoll of Coresight said.
Nordstrom is among retailers using space at the front of its stores for shelves dedicated to online pickup, Darnall of Brookfield Properties said. Curbside pickup remains popular at malls and other big box stores.