Consumer Behaviour & Preparation for Holiday Shopping // A 2024 Guide for Retailers

Planning & Budgeting

A defining trend in 2024 is how consumers are proactively planning and budgeting for their holiday purchases. Shoppers are increasingly focused on stretching their budgets and getting the best value for every dollar spent.

Budgeting and planning are also being shaped by inflation, which has heightened consumer sensitivity to price. 62% of shoppers say they’re prepared to switch to alternate brands if their preferred options are too costly. As a result, offering well-timed discounts, early promotions, and convenient payment options like "Buy Now, Pay Later" can help retailers capture early spenders and encourage loyalty.

Early Gift Shopping

According to Bain & Co., over 55% of U.S. shoppers plan to start holiday shopping in November, preparing for potential price hikes or product shortages as demand intensifies. With many beginning their holiday research well ahead of time, they’re pinpointing must-have items and sales events in advance.

Retailers can make early shopping more appealing by offering personalised gift guides, product bundles, and tailored recommendations that simplify decision-making for busy customers.

A smart tactic here is to highlight items that might become scarce or more expensive closer to the holiday season, giving shoppers a clear incentive to act early. Bain & Co. reports that 76% of holiday shoppers will make at least half of their purchases online, while 47% will shop in physical stores, underscoring the value of a balanced, omnichannel strategy to capture customers wherever they prefer to buy.

Promotional Sensitivity

Shoppers are highly attuned to seasonal sales events, especially Black Friday and Cyber Monday. These days are critical for capturing purchases that consumers have postponed to secure the best deals. For 2024, rising consumer stress levels due to economic concerns and the presidential election have prompted many retailers to hold early sales events.

To meet shopper expectations, retailers should consider offering exclusive discounts, loyalty rewards, or flexible payment plans that make it easier for consumers to stick to their budgets. Promotions that extend beyond the traditional big-sale days can help capture additional spending from shoppers who missed out on earlier deals or are looking for last-minute options.

Experiences & Added Value

While price and promotions are crucial, many consumers are also drawn to experiences that elevate holiday shopping. From in-store events and holiday previews to personalised gift-wrapping services, retailers can create moments that feel memorable and exclusive. These experiences not only differentiate brands but also build deeper connections with customers who value a festive atmosphere or a personalised touch.

Moreover, creative experiences can encourage shoppers to explore additional items or return to the store, whether online or in-person. For example, a holiday pop-up event or a festive gift-wrapping station could make all the difference in creating a lasting impression.

Visual Merchandising

During the holiday season, visually captivating displays are key to attracting attention and creating a joyful, festive environment. Seasonal decor, themed displays, and clear product zoning can make shopping easier and drive impulse buys. Online retailers, too, can benefit from optimised, festive landing pages that quickly guide shoppers to popular gift categories or price ranges, like “gifts under $50” or “gifts for dads”, which are particularly valued by younger generations like Gen Z.

In a crowded digital and physical retail landscape, appealing visuals can draw in potential customers, sparking their interest and encouraging them to explore the full range of offerings. By creating visually appealing and intuitive environments, retailers can stand out amidst the holiday rush.