Minnesotans shifting how they shop as pandemic changes retail industry

In the past, Katie Trapp relied on wandering through decorated stores, listening to piped-in holiday carols to ignite her holiday spirit.

But not this year.

"Our daughter is 3 and can't be vaccinated, so I'm not going to the malls," she said. "I hate to complain about not shopping when COVID has been devastating to so many, but it's kind of a bummer."

Continued COVID-19 concerns have continued to shift consumer patterns this year. Given the convergence of supply chain bottlenecks, product shortages, delivery slowdowns, sluggish service at short-staffed retailers, higher prices and their own tighter budgets, some Minnesotans are making a break with longstanding gift-buying traditions.

"This new outlook and perspective on consumption is another one of those unintended consequences of the pandemic era," said Mary Meehan, CEO of Panoramix Global, a Minneapolis-based consumer research firm.

Meehan connects consumers' greater sophistication with using technology to an upswing in e-commerce this December. The Adobe Digital Price Index predicts that Americans will spend a record-breaking $207 billion online in November and December, a 10% jump over the same period in 2020.

"The pandemic pushed us to use online options that otherwise would have taken years for widespread adoption. A greater percentage of us are comfortable and confident buying online; people are savvy about using search bars and filters to find what they want," Meehan said.

Small retailers finding audience

The push to shop local during the pandemic's second holiday season has been proven to be a gift to Minnesota independent merchants who sell artisan, handmade or vintage items online on the etsy.com website.

A medical device analyst who has worked from home since the pandemic began, Trapp made an exception to her resolve to avoid in-person shopping when she masked up and dashed into a craft market at her neighborhood community center in Maple Grove. Spotting a booth with wooden signs, she ordered one for $25, to be customized and delivered.

"My daughter's name is Paisley; there's not much with her name on it. I was super excited to get this made to hang on her swing set," Trapp said.

Etsy's CEO is projecting a robust year, anticipating that the platform's sales in 2021 will grow by 140% over the same time period in 2019.

Eight in 10 Etsy shop owners are one-person businesses. That's the case for Ann Schiller, who was a Bloomington art teacher when she began selling her Minnesota-themed designs in 2009.

A graphic artist, she was successful enough selling her original illustrations — on shirts, blankets, playing cards and customized invitations — that she eventually shifted to running her Event 123 business full-time. Now, Schiller and her family also moved to Park Rapids, where she runs a brick-and-mortar shop in the summer months to cater to the cabin crowd.

"I've been super busy with the volume coming in. Customers are itching to support small businesses," she said. "But I'm dependent on the supply chain, too. I had problems ordering ink cartridges, and if I can't print, I'm done. I'm using my slower older printer that I can still get ink for. When you're on your own, you find a way to make it work."

This is the first holiday season for crafts made and marketed by the Looney Sisters. That's the name of a pandemic business started by sisters Connie Walerius and Sue Roycraft, along with Sue's husband, Dick.

"We've always been crafty, and on the evenings and weekends when we didn't have anything much to do, we started fooling around to see what we could come up with," said Roycraft. "We liked what we were making and we thought we should get serious about this."

Working out of Walerius' heated garage in Brooklyn Park, the trio creates plaques, puzzles and coasters from resin and Minnesota wood; their Skol! signs have found a following among Vikings fans.

The startup has made half its sales to Etsy shoppers and the rest through booths at weekend craft shows staged around the Twin Cities; that's where Katie Trapp placed her order for her Paisley Park sign.

"As time is running out, the buyers like to have something in their hand. They're looking for a sure thing," Walerius said.

Turning to online marketplaces

Some shoppers looking for bargains or unusual items are turning to social media sites and e-commerce platforms like eBay. Secondhand buyer-to-buyer options on Facebook Marketplace and Craigslist offer the convenience of local porch pickups and online payment as the shopping season winds down.

Meehan, of Panoramix Global, sees the interest in these resale platforms as consistent with what she calls the "new priorities" of the era, including environmental consciousness.

"Buying used is a badge of honor now," she said. "Snagging a deal is a thrill, and it's easy to get at this stuff when it's online."

Susan Kallsen estimates she has sold thousands of treasures online. She started listing items on eBay in 1995, when it was still known as Auction Web. In recent years, she has added Etsy, Mercari and Facebook Marketplace.

"I find deals at thrift stores or buy new stuff on clearance," she said. "I picked up a dozen sets of [high-quality] sheets on sale and resold them at a 30% profit. Everyone who bought still got a deal and we were all happy."

Kallsen uses the platforms as a buyer as well.

"I just got a fine deal on a pair of vintage clip-on earrings for my mother," she said. "I'm only online shopping now, and it's worth it to me to have them shipped."

Shipping delays have hit Kallsen and fellow sellers, though, she said. Deliveries have become more expensive and less reliable because of the shortage of seasonal workers.

The pandemic issues that have forced consumers to change behavior will likely result in at least some permanent shifts in retail.

"The challenges have become our way of life," Meehan said. "The world has changed and there's no going back."