Operations
09 September 2022
Delivery times, inflation in focus heading into holiday shopping
58% of shoppers plan to increase ecommerce use during the 2022 holiday season, Radial finds.

58% of shoppers plan to increase ecommerce use during the 2022 holiday season, Radial finds.

As brands and retailers get ready for the holidays amid a return to in-store shopping, it's worth remembering that ecommerce will remain an important channel during 2022's busy season.
According to a new survey from Radial, 58% of shoppers plan to increase ecommerce shopping this holiday season. This marks an increase of 8% in ecommerce intent over a similar survey conducted last year.
At the same time, 46% of respondents said they planned to shop in-store in the same volume this year.
Radial, an ecommerce solutions company, surveyed 1,000 US-based adults to gather insights on shopping trends for the 2022 holidays. The results show that it's a year when the pandemic-induced shifts are starting to shake out. Some new habits are sticking, while others are evolving anew.
Through it all, one question has remained consistent year-to-year, and just as difficult to answer this year as the last: When – and, more to the point, how early – does the holiday shopping season actually start? Radial provides some data on where things stand in 2022: In August, 12% of consumers said they had already started holiday shopping, while 18% will start in September.
It’s especially worth noting that 41% of respondents said they will begin shopping before Thanksgiving, in the period from October to the early weeks of November.
A big factor that’s new for this year is inflation. It has hovered at 40-year-highs for many months of this year, and the Federal Reserve is signaling further actions ahead to bring it down. If these interest rate hikes have the central bank's desired effect, it will cool off the economy, which could dent spending even further than rising gas and food prices already are. Many retailers already trimmed profit outlooks in Q4, and are fretting continued pullback. Radial’s research found that there will be some “curbing” in gift-giving as a result of inflation. Overall, however, brands should expect similar consumer demand as last year. About 38% of consumers noted they will change the volume of gifts they purchase, while 40% plan to buy the same amount of gifts as last year.
But retailers shouldn't let the macro environment distract them from tightening operations. In ecommerce, this year’s holidays will be marked by rising expectations in customer experience, Radial says. When it comes to fast delivery, one-in-three consumers said 2-3 days was a reasonable time for delivery. That's an increase of 10% year-over-year and a big jump over 2020, when 14% said they expected orders within two days.
Consumers are also proving to be willing to try new delivery methods, as 46% said they would try out drone delivery if offered.
At a time when shoppers are planning to shop both online and offline, offerings that cross both channels will continue to be important. The survey found that about one-third of respondents plan to use both curbside pickup and buy online pick-up in store services. These hybrid methods of getting orders to consumers rose during the pandemic, and continue to be a necessary part of the mix that retailers can offer to shoppers as they seek to provide convenience.
Following the supply chain challenges of 2021, brands and retailers have a chance to win loyalty through delivering great experiences in 2022. Consider their experiences last year. They survey states that two-thirds of consumers dealt with out-of-stocks, while 39% said items were unavailable on their desired channel. Another 40% received items late. Shoppers won't want to repeat those experiences, and there's a good chance they'll remember the brands and retailers that ensure they don't.
“The retail sector has undergone significant unpredictability and digital acceleration over the last two years. Supply chain disruptions and evolving consumer behaviors have shifted a formularized market, into a dynamic one. The impact of inflation introduces a new variable for brands to plan and strategize around this year,” said Laura Ritchey, COO and EVP at Radial. “To ensure peak operations run smoothly, it is essential that brands focus on inventory management and measure against consumer demand. The need for sound omnichannel offerings will ensure customers get a great experience regardless of the channel from which their order is fulfilled.”
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.