A new Mastercard survey finds that 77% of Americans will choose to shop local this year, while 75% plan to be more conscious about where they shop, favoring businesses that share their personal values.
These findings are supplemented by a Mastercard SpendingPulse analysis of retail sales in the 20 largest US metropolitan areas, where total retail sales grew 4.1% in October and cities including Atlanta, Houston, and Orlando emerged as leading the retail recovery.
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Holiday shoppers are planning to prioritize small (78%), minority-(68%), women-(68%) and Black-owned (66%) businesses, and 53% note that they would rather not receive a gift at all than to receive one from a retailer whose personal values don’t align with their own.
Ultimately, most (73%) would give up their gifts altogether to spend face-to-face time with friends and family this holiday season. Additional insights from the new Mastercard study show:
- Consumers See the Holidays as a Reprieve: 55% of consumers see the holidays as a time to celebrate and unwind after a stressful year, and 71% are looking forward to an overall slower-paced holiday season. More than half (58%) say they are less stressed about shopping compared to years past and are leaning into the unique holiday season by updating old traditions (51%), embracing virtual celebrations (29%), planning contactless gift exchanges (23%), and more.
- Decking the Digital Halls with Touchless Payments: Nearly two-thirds of those surveyed plan to shop in stores that have contactless payments options. Additionally, shoppers are prioritizing gift cards and mobile payments options, with 64% noting that they are actively trying to not give cash as a gift this year. Further, 52% of respondents said they are planning to ship more gifts to their loved ones homes this year to avoid person-to person contact.
- ‘Tis the Season to Spend on Friends and Family: 59% say that they will likely spend the same or more money on holiday shopping this year compared to last, while just under half (43%) note having more to spend on holiday gifts because they haven’t spent as much as usual over the course of 2020. Some shoppers are looking for a morale boost – saying that they are hoping to cheer up family and friends (43%) and get in the holiday spirit by shopping (40%).
- It’s the Most Wonderful Time of the Year – to Add to Cart: 82% say they are likely to shop online this year, with 55% expecting to complete most of their shopping online. While 88% of those cutting back on in-store shopping say they will miss elements of that experience, such as the holiday music and the ability to touch and feel items before purchasing, the benefits of staying home outweigh the cons – such as waiting in lines (74%), pushy or rude customers (65%) and finding parking (56%).
“While the holidays may look different this year, one thing is clear – Americans are shopping with a different perspective,” said Linda Kirkpatrick, president, US Issuers at Mastercard. “Whether they’re tapping their cards in store or leveraging Click to Pay online, consumers have embraced digital payments more rapidly than ever before, given the enhanced relevance to their daily lives.”
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