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Illustration: Eniola Odetunde/Axios

Online retail and e-commerce have been chipping away at brick-and-mortar businesses over the years but the combination of the coronavirus pandemic and the 2020 holiday season may prove to be a knockout blow.

The state of play: Anxious consumers say financial concerns and health worries will push them to spend less money this year and to do more of their limited spending online.

Driving the news: Deloitte's latest global survey of consumers finds shoppers plan to spend an average of $1,387 per household, down 7% from 2019.

  • With nearly one third (29%) of respondents saying that their household’s financial situation is worse this year than last, 38% of consumers say they plan to spend less on the holidays, the most since the Great Recession.

By the numbers: Almost 51% of holiday shoppers feel anxious about shopping in-store, and 64% of holiday budgets are expected to be spent online.

  • Spending is expected to shift to non-gift purchases for celebrations at home (up 12% from 2019), and travel is expected to decline 34% year over year.
  • The average shopping window is expected to be 1.5 weeks shorter this year.

On the other side: Amazon's Prime Day — the unofficial start of the 2020 holiday shopping season — delivered a 71% increase in spending from U.S. shoppers over 2019's July event and a 66% increase globally, according to Salesforce data.

  • Traffic to digital sites increased by 40%, even eclipsing 2019's Black Friday (9% growth) and Cyber Monday (11% growth) digital traffic.

While the rising tide of Prime Day has lifted all retail boars in the past, this year brick-and-mortar firms haven't seen nearly the same increase.

  • According to data from foot-traffic tracking firm Placer.ai, Whole Foods saw visits fall 32.1%, while Target, Walmart and Best Buy were down 15.9%, 19.1%, and 11.6%, respectively, compared to July 2019.

What's next: A new poll from Alignable finds 45% of consumers shifted from local purchasing to online shopping when their COVID fears were greatest and many have not gone back.

  • More than half (52%) say they don’t expect to change their current shopping habits for the holiday season.
  • Another 16% plan to increase their spending at national, online retailers instead of shopping locally.

The bottom line: Alignable survey analysts note, "Given this data, there's a chance some Main St. retailers will completely miss out on much of the holiday shopping season — devastating news for many who are already in jeopardy of shutting down for good."

Go deeper

WSJ: UPS orders drivers to stop accepting packages from 6 major retailers

A UPS deliveryperson in Kips Bay, New York City. Photo: Noam Galai/Getty Images

UPS ordered drivers to temporarily stop accepting packages from Macy's, Gap, Nike, L.L. Bean and other large retailers this week, the Wall Street Journal reports, citing an internal message confirmed to the Journal by UPS employees.

The big picture: Thanksgiving Day online sales reportedly hit a record $5.1 billion this year, while Americans spent $10.8 billion in e-commerce for Cyber Monday — the biggest U.S. online shopping day ever, per the Washington Post.

Dec 3, 2020 - Health

U.S. exceeds 100,000 COVID-related hospitalizations for the first time

People wait outside the Emergency room of the Garfield Medical Center in Monterey Park, California on Dec 1. Photo: Frederic J. Brown/Getty Images

More than 100,200 Americans were hospitalized as of Wednesday due to the coronavirus for the first time since the outbreak began in early 2020, per the COVID Tracking Project.

The big picture: The milestone comes as health officials anticipated cases to surge due to holiday travel and gatherings. The impact of the holiday remains notable, as many states across the country are only reporting partial data.

Dan Primack, author of Pro Rata
8 hours ago - Technology

TikTok gets more time (again)

Illustration: Aïda Amer/Axios

The White House is again giving TikTok's Chinese parent company more to satisfy national security concerns, rather than initiating legal action, a source familiar with the situation tells Axios.

The state of play: China's ByteDance had until Friday to resolve issues raised by the Committee on Foreign Investment in the U.S. (CFIUS), which is chaired by Treasury secretary Steve Mnuchin. This was the company's third deadline, with CFIUS having provided two earlier extensions.