How Consumers Plan to Shop This Holiday Season
Consumers are continuing to gravitate to e-commerce as 83% of holiday shoppers plan to shop online this year, according to a recent “Holiday Purchase Intentions” report from market research firm Circana. However, fewer consumers plan to exclusively shop online, based on Circana’s annual holiday survey from September.
The survey found that 74% of holiday shoppers plan to shop both online and in-store, while 16% plan to shop exclusively in-store, both increasing slightly from 2023. This shift suggests that consumers are seeking a balance between the convenience of online shopping and the experience of shopping in physical stores.
“Convenience and value are paramount for consumers, creating an interesting dance between e-commerce and physical retail this holiday shopping season,” Marshal Cohen, chief retail advisor for Circana, said in a media release on the report. “More than ever, holiday shoppers will be utilizing all shopping channels and resources to maximize their spending ability and overall shopping experience.”
The report also highlights the growing importance of online research and price comparison before making a purchase. Nearly one-third of holiday shoppers indicated that they prefer to buy as many gifts as they can online, and just as many said they compare prices online before heading to a store.
Additionally, the majority of holiday shopping will be done online. Online-only retailers are the top planned holiday shopping destination this year, cited by 77% of consumers. This trend is further supported by the fact that 42% of holiday shoppers are planning to do more online shopping so they can ship directly to family and friends, a significant increase from last year.
Even traditionally in-store promotional events such as Black Friday are now a big part of the online trend. Black Friday has ranked as the top shopping day in November for both in-store and online purchases over the past two years, according to checkout receipt-based sales tracking from Circana. Additionally, nearly a quarter (24%) of shoppers said they think they’ll get the best deals on Black Friday this holiday shopping season — the highest in four years.
This suggests consumers are increasingly comfortable with online shopping, even during traditionally brick-and-mortar focused events, according to the report.
Other takeaways include:
- Millennials have leapt ahead of Gen X in terms of spending intentions, planning to spend the most ($880).
- “Spirits are up heading into the fourth quarter, and consumers are looking to hold on to that feeling of positivity,” Cohen is quoted as saying.
- More than half of holiday shoppers said they will spend less this holiday season because other costs/expenses have gone up, and they’ll buy more items that are on sale or promotion.
- More consumers did some of their holiday shopping during this year’s summer retail promotional events, and more planned to take advantage of fall sales events than in either of the past two years.
- Experiences continue to be popular gifts, with food and beverage as the most popular type of experience, followed by tickets to a sporting event, concert or theater/play/musical.
- U.S. retail sales trends, including discretionary general merchandise and CPGs, have continued to stabilize this year.
- More consumers see the holidays as a break from everything that’s happening in the world, and more plan to buy more gifts for others and self-gift to bring them joy.
- 21% of consumers will use social media for pre-purchase research this holiday season, up 1 point from last year.
- Meta’s Facebook rebounded to become more relevant in holiday shopping, driven by younger generations, and is only second to YouTube.
- Only 45% of those who follow a celebrity said they would be influenced to make a purchase, compared to 57% of those who follow bloggers/influencers.
“As the peak holiday shopping period approaches, retailers must adapt to the evolving preferences and growing proficiency of consumers,” Cohen added. “A seamless cross-channel experience will be critical for retailers that play in both spaces, and those that don’t need to find ways to counteract the top benefits of their competition or risk losing out on this holiday’s growth opportunities.”