December 5, 2024

Holiday Shopping & Consumer Behavior in 2024: What to Expect This Season

Electronic Payments Team

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Small Business Tips

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The holidays are quickly approaching, and for many business owners, that means the busy season is here. To help prepare you for what’s ahead, we’ve looked at consumer insights and holiday shopping trends for 2024. Read on to learn what the statistics say about consumer behavior this year and what you can expect based on the data.

What’s Special About the 2024 Holiday Shopping Season?

Researchers and analysts say the 2024 holiday season could be a bit unusual thanks to a combination of elections, a short holiday shopping season, and continued buzz about inflation. 

The Impact of an Election Year

Per Limelight Marketing, we often see significant changes in consumer behavior during election years, especially around polling dates (which could translate to a dip in sales at the beginning of November). Luckily, it seems shopping habits often bounce back during the core shopping period (Thanksgiving to Christmas). Forbes notes that, before the election, 60% of consumers anticipated that the results would influence their holiday shopping. While it’s difficult to say whether your market will see an increase or decrease, it’s a safe bet that you could see more volatility this year.

A Shorter Shopping Season

This year’s core shopping season is relatively short thanks to a late-in-November date for Thanksgiving. Be ready for a smaller window of time in which to wow holiday shoppers—about five days less than in past years. According to Ipsos, more consumers started shopping earlier this year, with a quarter of consumers reporting they began shopping in October (vs. 17% in 2023).

Inflation is Still a Hot Topic

Inflation has been a key factor for spending over the last several holiday seasons. In 2024, Retail Dive notes that while consumers have expressed strong worry about high prices, there is also awareness that inflation has slowed. So, while customers are still concerned about prices, we could see more optimistic spending this year than in the recent past.

What to Expect From Consumer Behavior This Holiday Season

How do the statistics translate to your holiday season experience as a small business owner? Here’s our analysis based on market research from some of the industry’s biggest players.

Customers Are More Price Conscious

We might see a more challenging landscape for sales this year, according to Salesforce: a full two-thirds of consumers consider themselves “price conscious” this year, compared to only 46% in 2020. If you see softer growth this season than in 2023, there’s a good chance you’re seeing the symptoms of this larger cultural shift. The holidays are still your best opportunity to capture sales. Still, many retail analysts suggest keeping the broader picture in perspective when considering your performance (and perhaps when setting your strategy for the 2024 season).

Online Shopping is Up

Online shopping continues to rise in popularity, with Ipsos reporting that more people plan to shop online this year (68% in 2024 vs. 60% in 2023) and eMarketer reporting that 53% of US adults in the Gen Z bracket (adults 18 to 29) will turn to TikTok for their shopping.

If you have a strong social media or eCommerce presence, this could be a good avenue for you to offer customers the conveniences they appreciate from bigger brands while still providing your community the chance to shop locally.

Local and Loyalty-Based Shopping Is Up

Great news for small and mid-sized businesses: appreciation for local businesses is on the rise this season! WWD reports (via Intuit data) that small business owners are feeling optimistic about the 2024 season due to rising “shop small” sentiments and estimates that “93 percent or 240 million people plan to shop small this season.”

Several other studies support increases in local, in-person, and loyalty-based shopping:

• Ipsos: 73% of respondents (vs. 65% in 2023) reported a desire to support their local communities with their holiday shopping.
• eMarketer: Gen Z and millennial shoppers are more likely than older cohorts to shop in person.
• Salesforce: 63% of shoppers make more purchases from stores that offer loyalty points, with 46% rating loyalty points as a top priority after price when making a purchase decision.

This holiday season may be a great time to lean into your local side and focus on programs that increase customer retention and win you more repeat business.

Gift Cards Remain a Hot Ticket Item

Gift cards are great for business all year round, but the holiday season—especially in 2024—is the prime time to make the most of your gift card program.

Here’s what we learned about the gift card market this season:

• Accenture: Gift cards are rising in popularity, and 40% will buy gift cards this year. About 50% of respondents reported leaving an unused balance, averaging $120, on their cards.
• RetailWire: A Blackhawk Network survey found that shoppers plan to spend 48% of their holiday budgets on gift cards (up from 39% in 2023) and that 49% of respondents consider gift cards more valuable than other gifts.
• National Retail Federation: Gift cards are once again the most wished-for item on consumers’ lists, with 53% of shoppers requesting them in 2024.

If you need to restock or start a gift card program, you can get cards fast through eGiftSolutions®!

Next Steps

Understanding consumer habits can help you strategize, make the most of this year’s trends, and position your business for a successful holiday season. While the 2024 holiday shopping season presents some challenges for businesses, we see plenty of opportunity, too. If you’re looking for tips on optimizing your store for the holidays, check out our guide to success on Small Business Saturday!

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