Retailers may be in for a precious gift during this year’s holidays: time. Analysts are predicting that Americans will spend more than last year and start their shopping earlier, the Tampa Bay Business Journal reported. For retailers generally, this should translate into increased cash flow through the remainder of 2020, and for some, it may be enough to turn the corner and avoid bankruptcy. The shopping season is unlikely, however, to save any companies from bankruptcy that were already headed that way before the coronavirus pandemic. Holiday creep — the phenomenon of the holiday shopping season starting earlier and earlier every year — is not new, but this year, advertisements for Black Friday sales started in October, which is typically reserved for Halloween. On top of that, pandemic-related product shortages and longer delivery times have led to changes in consumer behavior, making them more likely to buy if they see something they like rather than risk the item being out of stock later on. Analysts are forecasting an overall spending increase between 1 percent and 2 percent over 2019, although some are predicting no growth at all. Moreover, analysts predict a year-over-year increase of more than 30 percent in online shopping, compared with a 19 percent increase in 2019 over 2018. These are not exciting predictions for brick-and-mortar retailers, but for those with a strong online presence, and those that have embraced reimagined ways to shop — think curbside pickup — they are reasonably good news.
