Retailers will have to work harder than ever to capture a reluctant consumer spend over December as COVID-19 fears and restrictions dampen the excitement of in-store shopping, a survey shows.

Getting ‘online’ right will be critical for retailers, EY Malta’s Future Consumer Survey suggests.

Carried out in the first week of November, it shows that 37 per cent of consumers do not plan to take part in shopping events such as Black Friday and during the festive season.

And the majority of those who will, 35 per cent, plan to do their shopping online rather than in-store while 31 per cent plan to spend less than in previous years during these events. Only 10 per cent aim to splash out.

Among those showing a significantly higher propensity towards online shopping are respondents with the highest level of disposable income and millennials.

Now is the time to reinvent retail, the survey advises.

Retailers must act fast to capture sales in the critical ‘golden quarter’ that offers a peak Christmas selling period “like no other”. Retailers cannot afford to stay still in a constantly changing consumer market.

“What would have been a 10-year transition has happened in less than a year and retailers need to act with agility and focus,” it says.

“This will maximise their chances of thriving into Black Friday and Christmas and taking advantage of future growth opportunities in 2021.”

Retailers are still in time to engage their customers but how they perform in the coming weeks will be more important than ever, the survey says, listing what they should do to maximise opportunities.

Apart from fully understanding consumer sentiment and propensity to spend as a result of the pandemic, they need to further improve the online experience and respond fast to changes in behaviour

Gilbert Guillaumier, associate partner at EY Malta, highlights the need to pivot business to match shifts in customer demand and pricing sensitivities, in terms of both product assortment and customer experience. 

Coming to the end of an incredible COVID-19 year – and a uniquely critical time for the retail and business community – the survey says people are transitioning from the initial shock to a mentality of acceptance for the time being: the majority of consumers are doing their best to get on with things.

While there is a reluctance to spend, there is still demand. By tracking consumer sentiment since August, the survey has seen behaviour evolve from “anxious to adaptation”.

Also, consumers have a relatively better financial outlook today compared to EY’s previous survey, with 12 per cent having a negative perception now as opposed to 19 per cent previously.

Consumers are still proceeding with caution, but less so, with 57 per cent concerned about their spending compared to 67 per cent in August.

Twenty per cent plan to postpone major purchases compared to 45 per cent in the previous survey.

However, anxiety has deteriorated for some activities since August, as the pinch of second wave fears is felt.

While respondents are generally comfortable with shopping for essential items, personal care and medical purposes, going to a restaurant has decreased to 54 per cent from 65 per cent. Fewer – 47 per cent – are happy to go to a shopping mall now, compared to 56 per cent in August.

Meanwhile, anxiety around school attendance seems to have eased, with 67 per cent expressing comfort compared to 31 per cent in August.

At the bottom of the ‘comfortable’ list in descending order are gymnasiums, cinemas, planes and cruises.