Spend less, but more mindfully
Nearly half of all Texans have experienced a financial pinch from the pandemic and will reduce their holiday spending this year.
Most, though, want to contribute to their communities and shop with local businesses, a new survey shows.
Despite the politics around COVID-19, most Texans want to alleviate the suffering, whether from the disease or from the associated recession.
Hopefully, all of us will demonstrate some holiday spirit as we end this stressful year with a little consumer therapy.
Researchers asked more than 1,500 residents of Austin, Dallas and Houston about their holiday mood and spending plans. The end of the year is when most retailers make their profit, and the forecast is a little depressing, according to Accenture, a global consulting firm.
Texas shoppers who normally spend around $675 a year on holiday purchases plan to cut back by $86 this year. About three Houstonians in five say they’ll shop from home rather than risk contributing to the pandemic, the August poll found.
Two-thirds said they
will not travel for the holiday, and more than 40 percent remain leery of eating out. Only a third were optimistic about their financial situation, while more than 40 percent said they were worried or had lost income.
Airlines, hotels, restaurants and almost every segment of the travel and leisure industry report dismal revenues and mass layoffs. The applications for unemployment benefits remain astronomical.
Now, retrenching consumers are hunkering down for the winter and another wave of COVID-19 is crashing across the country. With infection rates and hospitalizations climbing again, Texans are less likely to go out and will double-down on protecting their financial health.
Big retailers with e-commerce sites are raking in the profits, as consumers order more of their holiday gifts online and route them directly to the recipients.
Houston is more enthusiastic about online shopping than any other city Accenture polled, with 85 percent saying they'll shop online and only 57 percent promising to go to stores, a drop from 77 percent last year.
The coronavirus is a disaster for local storekeepers who can't afford the latest, greatest online shopping apps. A 12 percent drop in spending and a 20 percent drop in foot traffic is enough to bankrupt the best-managed business, let alone a sector as
fragile as brick-and-mortar retail.
Luckily, there is some good news.
Consumers recognize the economic damage the virus is wreaking on their communities. They know shops, restaurants and other small businesses that provide personal services are suffering. They want to help.
More than half of Texans plan to shop locally to aid their econo
my, Accenture found. They will reward businesses that take precautions on behalf of their customers and employees. About 40 percent want to help minority businesses in response to the Black Lives Matter movement.
Perhaps the most important lesson for local retailers, though, is that 85 percent of consumers want to see a demonstrable commitment to health and hy
giene, or they might turn around as soon as they get to the door.
“2020 is shaping up to be a very ‘human' holiday season for consumers, with a desire to support the people who have served our communities,” said Jill Standish, Accenture's senior managing director for global retail. “Now is the time for retailers to be authentic to their purpose and transparent about how
they treat employees.”
Will the focus on local retailers be enough to save them?
Nearly 25 percent of the nation's small businesses shut down at some point since the pandemic began. More than 10 million people who lost their jobs due to COVID-19 remain unemployed, and many struggle to pay rent or buy food.
Those of us who are fortunate should remember that small businesses employ 47 percent of Americans, federal data shows. Unique local shops and restaurants are what set our communities' cultures apart.
When you buy a cheap, madein-China skirt online, your money is going to a big corporation, rather than a local boutique that employs your neighbor and possibly supplies a product made in America. The same is true with takeout.
This year more than ever, those of us who can need to shop mindfully, knowing every dollar we spend is more than a gift for a loved one, but an investment in our community's future.
The Accenture study found nearly a third of Texans plan to give to charities this year, which is about the national average.
My wish for this holiday season is for all Americans to move past divisive politics, at least until the New Year, and buy American products from local shops and give until it hurts.