Holiday Shopping Trends Shaping 2024 Retail Strategies

Customers aren’t waiting for Black Friday to start holiday shopping, nor should your company. Most shoppers already work to gather holiday gifts in November or even October, holiday shopping trends start well before Thanksgiving in the United States.

\ Customers are shopping early, looking for great deals, and spending their money carefully. Understanding recent holiday shopping insights can empower companies to make data-driven decisions. After all, consumer feedback allows businesses to optimize marketing strategies, improve customer service, and manage inventory more effectively.

Is Holiday Shopping Still a Big Deal?

Black Friday happens later in November this year, and consumers are shopping earlier. Does that mean that the traditional holiday shopping window is less important? Definitely not. Holiday shopping trends might have consumers in stores looking for gifts early this Autumn. Still, spending is only projected to go up.

\ Holiday shopping data from Deloitte suggests holiday sales will rise by 3.3% this year. The timing may shift a bit as to when purchases are made, but holiday shopping is still very much a big deal.

Early Shopping vs Last Minute Deals

While last-minute deals will certainly still occur with holiday shopping, 2024 data shows that consumers are not waiting to shop. They are already in stores starting to collect gift ideas. Holiday shopping statistics show that 60% of shoppers start their holiday shopping in November or as early as October. The survey also “noted a significant drop” in holiday shopping closer to the holidays, with increases in other sales periods.

\ Shoppers are planning and budgeting for purchases, taking advantage of sales. In fact, December is the least popular month to start holiday shopping, making last-minute shopping less popular than in years past.

\ For retailers who enjoy sales closer to December 25, there is a silver lining. Consumers spend $47 billion in the two weeks after Christmas, and 50% of the time, shoppers are buying for themselves, creating a great secondary opportunity for holiday shopping after the traditional season closes.

Budgets are Getting Tighter

Holiday shopping survey data suggests that 2024 will have a slightly different feel than previous holiday seasons. What is the force behind the change in holiday shopping in 2024? Tighter budgets, more internet-savvy consumers, and inflation. In fact, according to a recent PissedConsumer.com survey, 74.1% of consumers feel inflation might impact their holiday shopping. So, shoppers are looking to save money this holiday season, with 56.8% waiting for sales and 38% planning to buy fewer gifts.

\ Fortunately, according to a McKinsey survey, despite the higher prices caused by previous inflation, consumers are also feeling more optimistic. Consumers plan to spend more in the coming three months, and 41% of respondents felt more optimistic about the economy and spending, likely due in part to stabilizing prices.

Flexible Payment Options Are on Its Top

With so many consumers planning ahead, looking for deals, and working with a budget in 2024, it’s no surprise that flexible payment options are also extremely popular. By now, pay later (BNPL) options are big this year, especially on mobile devices and through apps.

\ Adobe currently forecasts that Cyber Monday will be the top day of BNPL shopping, with consumers spending about $993 million. Roughly 75% of that spending will likely be through mobile devices.

Consumers Are Less Likely to Shop In-Store

The move to online shopping has been accelerating for years, and 2024 will not be an exception. While the ability to see, touch, and test items will always keep the brick-and-mortar experience alive and well, shoppers are mixing it up. 7% of shoppers will only buy online, and all but roughly 18% of consumers shop online at least some of the time.

\ Online shopping is expected to increase by 8.4% over last year, equating to a record $240.8 billion spent in the United States. Most of that spending, at 53.2%, will be through mobile devices, creating tremendous opportunities for online retailers.

Holiday Shopping Insights to Remember

The 2024 holiday shopping data shows customers are budgeting, planning, and already hard at work shopping for the holidays, often through mobile devices using delayed payments. The holiday season starts early, but a secondary season happens in the weeks after Christmas, presenting plenty of opportunities for retailers to tap into a $240 billion market.