Irvine, CA—Nearly nine in 10 consumers say COVID-19 will impact their holiday plans, according to a recent Advantage Sales report with over 1,000 participants, conducted in mid-September. The report projects that winter holidays will see a drop in participation, including Christmas (23-point decrease) and New Year’s Eve (27-point decrease).

“Communities across the nation are seeing a holiday season like never before,” said Kimberly Senter, EVP, Analytics, Insights and Intelligence at Advantage Sales, in the press release. “As the winter holidays are projected to be impacted by changes in consumer demand and sentiment, Advantage’s research outlines where retailers and brands can find new ways to bring the holiday spirit to Americans who are, more than ever, craving connection.”

The report shows that consumers will be spending less money, shopping online more, and hosting smaller gatherings. Four in 10 respondents say they have less funds to spend during the holiday season because of the pandemic, and 30% plan on buying less expensive brands. Additional data shows that nearly eight in 10 respondents plan to shop at a grocery store for Christmas food and supplies this year; 25% say they’ll be shopping online with home delivery (up from 12% last year) and 14% plan to shop online for pick up at the store (up from 5% last year). And note that 40% of respondents say they will continue to shop in person at brick-and-mortar locations for last-minute grocery needs. So what are retailers to do to cater to these consumers and help them experience more joy and less stress?

Related: Inside the Baking Aisle How to Handle an Atypical Holiday Season Overcoming Obstacles to an Agile Food Supply Chain

Focus on helping consumers reinvent smaller gatherings, the report advises. Adjust to people buying smaller-sized holiday dishes with a range of traditional and nontraditional foods that include meal kits, smaller turkey and ham meals, and personal-size pies and desserts.

For more insights on what's expected this holiday season, download “The 2020 Challenge: Keeping Spirits Bright This Holiday Season” and other reports