What CPGs can expect from the 2021 holiday season

Will CPGs reap the benefits of an offline retail boom this holiday season?
couple christmas shopping

Compared to the previous year, CPGs are right to have a lot of hope surrounding their Christmas profits. 

With more and more people desperate to return to normalcy and interact with others, offline retail presents the perfect chance for them to get out. Consumers are appreciating in-store shopping now more than ever, but how will this be reflected in holidays sales numbers?

We’ve broken down the trends and predictions made by the biggest names in the industry to give you the answers you’re looking for this year:

How much will sales grow compared to the previous year?

If your seasonal revenue was a little lacklustre last year, there is a light at the end of the tunnel.

Basically every single publication is predicting that sales will rise at least 7% compared to the previous year, with some going as high as 10%+; good news for retailers, and even better news for CPGs

This means that if you play your cards right and perfect your retail execution, all that extra cash in circulation could be going into your pocket.

Monitoring promotion and pricing compliance will be especially important as consumers seek bargains – Ipsos found that 56% of Americans only plan to buy items on sale this year – and maximising your share of shelf is always a must.

Here’s what some of the big players are saying:

National Retail Federation (NRF)

Bain & Co

McKinsey & Co

Gerson Lehrman Group of UK companies

Ultimately, both sides of the fence predict great things for Christmas 2021. Industry experts say sales will be up, and polled consumers have a positive outlook, too.

This is a time of year that CPGs would be crazy to not take advantage of.

Which industries will have the most success this Christmas?

So, where does this biggest opportunity lie?

According to research done by Retail Week & Retail Economics, apparel is set to come out on top with 10.7% increase in sales compared to 2020.

Close behind sit health & beauty and toys & games, while the outlook isn’t so great for DIY & gardening, with a predicted 8.7% drop.

How many consumers will be shopping offline?

While seasonal footfall may still be struggling to reach the peaks of 2019, year-on-year numbers are still looking bright.

Springboard predicts that major UK cities will see a massive year-on-year increase of 140.3% in traffic during heavy shopping period.

And not only can CPGs and retailers hope to take advantage of the increased footfall, but there may be more consumer spending in general, as this seasonal survey of over 1000 Americans suggests:

How can CPGs increase holiday sales?

The answer here is simple, but not as easy as some may think: make sure your products are visible on the shelf, with any and all promotions on full display.

As mentioned above, promotion compliance will play a key role this holiday season, so it’s essential for CPGs to be auditing stores and making sure their plans are being executed.

Of course, this can take a lot of time, so it’s always best to look into faster, more efficient methods of auditing. Overall, no matter how they do it, your team in the field will be the secret to your holiday success.

The numbers are in your favor, so now it’s time to work that holiday magic!

If you’d like to learn more about Promotion Monitoring, you can find everything you need to know and more in our latest whitepaper “Promotion Monitoring: what you’ve always been missing”.

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