Customer Holiday Shopping Trends and Insights
The big question on all retailers’ lips this season is how and where consumers will shop this holiday season. It’s been a volatile year from an economic perspective which makes it hard to predict. The good news for you is that we’ve read numerous white pages, blogs and reports, as well as attended several holiday webinars so that you don’t have to!
Shoppers are feeling a tight grip on their wallets this season.
Many consumers, specifically Millennials, are dreaming of owning a home in the near future, and hoping interest rates will go down. In the meantime, they are saving more and reducing spending on non-essential items. Some are opting to spring for travel, restaurants and other experiences over physical goods. In addition, 43% of consumers are carrying more debt compared to 2023. And let’s not forget inflation.
Shoppers are getting savvy to find deals.
Everyone is trying to stay organized and on budget this holiday season, so making lists is the top way they are planning out their purchases, but 49% expect to find extra items while in stores and browsing online. Those impulse purchases will be a great way for retailers to capitalize on sales. 67% of consumers said they searched or used coupons or digital savings apps as a direct result of increased costs. This lack of urgency shows customers are willing to wait around for a deal and have a more specific approach toward spending. 53% of shoppers said they will watch for sales and discounts. Loyalty points are another factor influencing where people are purchasing, it was the second highest factor behind price.
How can retailers win this season?
More and more research shows the importance of product reviews and content creators recommendations to shoppers. Finding a way to capitalize on this will be important in reaching shoppers where they are. Consumers acknowledged the top three advertising messages most appealing to them while holiday shopping were ‘Free Shipping’, ‘Budget Friendly’ and ‘Hassle Free Returns’. Making sure you’re hitting on these terms in advertising will be key to increased engagement with consumers. According to LTK, Millennials top gifting categories include entertainment, fashion and beauty/personal care while Gen Z are most interested in beauty/personal care, entertainment and fashion. Creating gift guides with these categories in mind is a great way to ensure you have what these audiences are looking for.
Knowing how customers are feeling and preparing to shop for the holidays this year is key to making sure your brand is in the considered set this season.
