Back
davidlerner.com > Budgeting  > Corona Holiday Season

Corona Holiday Season

The end of 2020 promises to be a unique experience, no matter how things evolve coming out of the summer months. One thing is for sure, online shopping will be at the forefront of the conversation this holiday season.

In August, online sales reached $63 billion, and the first eight months of 2020 generated $497 billion in online sales. U.S. online sales increased 42% year over year in August, a significant increase but markedly slower than July, when online sales increased 55% year over year.  And things are likely to spike even further as shelter-at-home regulations impede masses of people descending on the local mall.

But not all end-of-year activities result in additional spending. Like many things, the back-to-school season finds itself in an unusual position. It is unclear how many students will physically return to school. Everything from basic school supplies to dorm room setups may be on hold if the dates are widely postponed, and this could result in a holding pattern that would delay spending.

But the holidays may be a mixed bag of results. A lot of small businesses have closed permanently as a result of this pandemic, and many others are struggling to stay alive. While in other areas, online sales have skyrocketed.

Another thing to consider is stock availability. One of the biggest challenges during coronavirus has been product availability. 47 percent of online shoppers experienced both out-of-stocks and shipping delays. Retailers will most likely strive to return to the expedited delivery that was standard prior to the pandemic. Waiting for shipments during the holiday season faces a much different set of personal circumstances and may be riskier, so many consumers may be shopping early in anticipation of delays. 

In previous years, the average person would spend over $1000 during the holiday season. Keep in mind, that’s over and above your normal spending habits and travel costs. This year, travel seems unlikely.

With such a large uptick in online activity, it would be prudent to develop an especially wary attitude of cyber thieves looking to take advantage of this time by running scams to trick you out of your hard-earned cash. Throughout North America, there have been escalated reports of fraudulent online stores and fake shopping apps being created, just waiting for people to find them and type in their credit card information. So be vigilant.

 

 

IMPORTANT DISCLOSURES

 

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

Your Investment Counselor

(ICname)
Skip to content