In a surprising twist, it seems that the states in America with the lowest COVID-19 vaccination rates were the ones leading the charge in in-store holiday shopping this year. Despite the ongoing pandemic and the emergence of the highly contagious Omicron variant, consumers in states with low vaccination rates flocked to brick-and-mortar stores and helped boost holiday sales.
According to an analysis of holiday sales data from Mastercard SpendingPulse, states with vaccination rates below 60% saw significant growth in sales. Arkansas, Kentucky, and West Virginia, all of which have vaccination rates below 55%, experienced the highest increase in sales between November 1 and December 24 compared to the previous year. Surprisingly, in each of these states, in-store holiday sales rose by more than 10%.
Experts speculate that consumers in these states felt more comfortable engaging in in-person shopping due to their lower concerns about getting infected and their perceived low risk. This sentiment is echoed by David Marcotte, a senior vice president at retail consultancy firm Kantar, who suggests that the relationship between mask-wearing, vaccination, and the perception of risk had an impact on shopping behavior.
It is also worth noting that states with more libertarian leanings tended to see higher growth in in-store sales. Sucharita Kodali, a research analyst at Forrester, points out that these states have been less cautious about going out and about.
Interestingly, the trend of in-store shopping was not limited to states with low vaccination rates. Even highly vaccinated states like Minnesota and New Mexico experienced an increase in in-store sales of more than 10%.
On the other hand, some parts of the East Coast with higher vaccination rates saw more moderate growth in in-store sales. For example, in New York, where approximately 72% of the population is fully vaccinated, store sales grew by 5%-6% during the holiday season. It is important to note that New York has been heavily impacted by the Omicron variant.
In Illinois, where only about 64% of the population is fully vaccinated, brick-and-mortar sales rose by 9%-10%. Katherine Nguyen, owner of a toy store in Chicago, attributed the increase in foot traffic to shipping delays and the fear of products not being available. Despite the Omicron variant, Nguyen reported record-breaking traffic and revenue in her store.
Overall, the Mastercard data revealed an 8.1% increase in in-store sales during the holiday shopping season. The surge in in-person shopping can be attributed to several factors, including consumer confidence, concerns about product availability due to shipping delays, and perhaps a disregard for vaccination and mask-wearing measures in certain states.
While the holiday shopping season has come to a close, it will be fascinating to see how the ongoing pandemic continues to shape consumer behavior in the retail industry. As the situation evolves, both retailers and shoppers will need to navigate the changing landscape and adapt accordingly.
Sources:
– Mastercard SpendingPulse: [Link to Mastercard SpendingPulse data](https://examplelink1.com)
– Forrester: [Link to Forrester research](https://examplelink2.com)
