As the Delta Variant Disrupts Labor Day Plans, Online Sales Could Benefit

As the highly contagious delta variant continues to spread, U.S. consumers are adjusting their plans for Labor Day, which traditionally marks the end of summer and includes long weekend getaways, trips to the beach and family barbecues. But a new survey from market research firm Numerator found that consumer concern about Covid-19 is on the rise again—in August, 16% of respondents said they expected the pandemic to impact their Labor Day plans. That’s up from just 8% two months prior. As a result, they’re adjusting their schedules. (The CDC has also recommended unvaccinated consumers not travel over the holiday weekend, but that advice came out after the Numerator report was published.) The percentage of consumers who expect to celebrate Labor Day with family and friends dropped to 51% in August from 64% in June. That was more pronounced among consumers who are vaccinated—and it’s more prevalent in the Southeastern U.S., which continues to see cases rise. What Marketers Should Consider as They Gear Up for the Holiday Season Consumers have also scrapped plans to barbecue, which may coincide with their decisions not to get together with loved ones. In June, 64% of respondents said they would grill out over the long weekend, but only 45% said they still planned to do so in August. Other popular activities that saw slight declines in consumer interest include traveling, going out for food/drinks and attending public events. This potentially bodes well for another longstanding Labor Day tradition: retail sales. According to Numerator, retailers that offer click-and-collect services stand to benefit as 13% of shoppers said they will avoid going into stores for Labor Day supplies, which is up from 8% in June. As far as what to buy, discount tracking site RetailMeNot anticipates Labor Day 2021 “should be more or less the same this year.” That means shoppers can expect markdowns in typical categories like appliances, outdoor furniture, mattresses, cars and summer clothes. (RetailMeNot advises against buying holiday décor, apparel, electronics and toys as better sales will follow in October.) Research from the National Retail Federation indicates even more consumers are waiting for sales events like Fourth of July and Labor Day to do their back-to-school shopping. Consumers in that bucket are up to 61% in 2021 from 55% in 2019 and bodes well for retailers in relevant product categories. Gartner senior principal Chelsea Gross, however, noted that Labor Day sales are getting “buried” in the extended back-to-school season and the renewed push for an early holiday season. “We’re noting a lot of email, social and SMS activity alerting consumers of Labor Day discounts alongside friends and family sales,” she said. “While this is not necessarily more discounting than average at this time of year, the blurred seasonal calendar is putting a lot of pressure on the holiday season.” In other words, brands and retailers are still trying to convince consumers to start their holiday shopping early. It was a tough sell last year—and will likely be this year as well. (Although consumers are certainly open to pumpkin spice products already.) “Given the level of environmental disruption in the U.S. currently, I’d be shocked if Labor Day contributed to above-average retail sales,” Gross added. “[Consumers] are, in general, distracted.” Despite Last Year’s Ecommerce Boom, Back-to-School Shoppers Are Returning to Prepandemic Habits