Consumer spending habits returning to normal

Mastercard reports that their Q2 2021 revenue surged 36% over last year, a confident indication that consumer spending is rebounding after the pandemic made shoppers wary of making discretionary purchases.

That’s 9% growth over Q1, amounting to a total of $4.5 billion in consumer spending in Q2.

It’s not just that shoppers are spending more – it’s also that they’re making more digital payments and fewer cash payments. Citibank saw spending on cards increase 40% in Q2 2021.

Contactless payments grew 37% YoY in Q2 2021 to account for 45% of global in-person transactions.

Visa found that 53% of consumers were spending more in June 2021 than in June 2020. Consumer spend is expected to remain elevated through the end of the year.[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner][static-block exodus_static_block_id=”20068″][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text el_class=”roi-blog-content”]

COVID-19’s impacts on the consumer electronics industry

The electronics sector is one of the many industries that witnessed significant growth online in 2020, with ecommerce up across the board due to COVID-19. Online electronics sales reached new heights last year and are expected to break more records in the years to come.

How apparel retailers & brands have responded to the pandemic

Many apparel brands and retailers have been forced to carefully rethink their strategy in light of COVID-19. Gap plans to double its online business by the end of 2023 and is building a $140 million warehouse to make it happen. At the same time, the retail giant is shutting roughly 30% of its North American stores.

As the leading casual apparel company worldwide, Gap expects that 50% of its sales will come from digital this year. Ecommerce accounted for 45% of Gap’s revenue in 2020, up from only 25% in 2019. Online sales for Gap were up 54% in 2020, while total sales declined 15.8%.

Omnichannel retailers Kohl’s and Nordstrom Inc. saw significant online growth last year, as well. Online sales for Kohl’s were up 41% in 2020, with 40% of online orders picked up in-store. Ecommerce accounted for 55% of Nordstrom Inc.’s revenue in 2020, up from 33% in 2019. 30% of online orders were picked up in-store compared to 10% in 2019.

New report: 2021 Holiday Success Plan for Brands

This holiday season is set up to be yet another challenge for brands looking to grow profitably.

Unpredictable shopping habits and behaviors, the ever-present dangers of another pandemic wave, and the volatility of a market that soared unexpectedly last year will make this holiday season a time of ecommerce instability. The brands that don’t proactively anticipate roadblocks or face challenges head-on will be left in the digital dust.

Luckily, we love challenges here at ROI – which is why we’re so excited to share with you our executive holiday guide for 2021.

Our 2021 Holiday Success Plan for Brands reveals key insights to make sure you are prepared to thrive this holiday season. You’ll uncover insights like:

Claim your copy to empower your brand to have a profitable holiday shopping season in spite of the uncertainty of the ongoing pandemic. Cheers to your brand’s success![/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]