For all of the challenges, angst and uncertainty, Holiday 2020 might end up being the turning point for retail - in a good way. Here are three key shifts that could potentially put retail on better path and help break old habits that were doing more to work against us than for us. <h3><b>Holiday Spending is Now Spread Out Over 3-Months</b></h3> “Sales results below expectations were likely driven by more prolonged sales events this year, leading to holiday sales being more spread out with less concentration on Black Friday vs. prior years,” according to Bank of America analyst Justin Post. Retailers began Black Friday sales weeks in advance of the day after Thanksgiving (Nov. 26) and plan to continue deals until Christmas. The extended promotional period boosted spending in the weeks leading up to Thanksgiving but sapped spending on Black Friday itself. Total retail spending from Thanksgiving Day through the weekend fell by 22.4% in 2020, compared with the same period a year earlier, according to GlobalData Retail. However, total retail spending beginning in September and lasting through the Black Friday/CyberMonday rose 2.1% to $62.5 billion, said GlobalData Retail. Evening out spending over a longer period of time could lead better inventory management and reduce buying risks. By reducing the traditional holiday frenzy, both buyers and suppliers could be better able to pace themselves - and the market. <h3><b>Doing Away with Agressive Discounts</b></h3> Retailers don’t appear to be discounting products as much this year as they did last year. Bank of America found a basket of 35 popular holiday sales items were discounted by an average of between 1% and 2% on Black Friday this year compared to an 8% to 10% average discount last year. The majority of retailers kept their promotions on par with last year rather than slashing them more to inspire purchases, according to research by Jefferies. Of the approximately 50 retailers that the firm tracked, it found that 54% of their sales promotions were flat year over year and 22% were down from last year. Only 24% featured higher year-over-year promotions. For apparel, discounts were either minimal or non-existent. This was a result of retailers keeping much lower inventories. <h3><b>Big Sales, Smaller Profits</b></h3> E-commerce sales have been booming throughout the pandemic. But can the online sales surge can offset the steep drop in store traffic? Equally as important is the added cost to retailers of providing expanded shopping options. From super sanitized stores to free shipping, retailers’ costs have skyrocketed this year. As retailers pack and ship more holiday purchases, higher costs are cutting into profits. "All of the new ways of shopping are really eating into profitability,” said Sonia Lapinsky, a managing director in the retail practice of AlixPartners. Curbside pick up has been the best performing option for retailers. The option is a cheaper alternative to fulfilling online orders without the cost of delivering an item to a person's door. Analysts and retailers expect that option to get even more popular in the weeks ahead, as last-minute shoppers worry about shipping delays or look to avoid potentially high shipping fees. This year retailers had to embrace any and all options to support sales. Going forward, they will need to evaluate how much a sale is worth. Sacrificing profits to grow sales volume might not be quite as attractive - or even viable - any longer. <h3><b>New Normal?</b></h3> Retailers were expecting the 2020 holiday shopping season to be an outlier due to the pandemic, and many companies are primarily concerned with minimizing the negative impact. Analysts are now saying that the real measure of how much of the 2020 retail disruption will have a permanent impact will come to light in when we see how Holiday 2021 plays out.