Holiday Shopping Trends: Early, Online, and Deal-Driven in 2024

As the holiday season approaches, retailers are gearing up for a shift in consumer behavior, with shoppers starting earlier, moving online, and seeking deals more than ever before. This trend is driven by a combination of economic factors, evolving consumer preferences, and retailers' strategic adaptations.

Economic Factors Driving Early and Online Shopping

Inflation and the cost-of-living crisis have pushed consumers to be more budget-conscious and start their holiday shopping earlier. According to Shannon Petsch, Lead Internet Marketing Consultant, "Inflation is adding stress to shopping, and consumers are worried about what they will spend over the holiday season." This concern has led many shoppers to begin their holiday shopping earlier, with about 21% of consumers starting in October and 24% planning to start in November (Cotton Incorporated 2024 Lifestyle Monitor™ Survey).

Moreover, the convenience of online shopping, where consumers can easily compare prices and find discounts, has driven the shift towards digital platforms. The 2024 holiday shopping trends report highlights that "Consumers actively look for deals and promotions," indicating that people are more likely to shop online for better deals (Holiday shopping trends 2024).

Retailers Adapt to Extended Holiday Season

Retailers have adjusted their inventory management and supply chain strategies to accommodate the extended holiday shopping season. For instance, J.C. Penney began its product and supply chain planning more than a year ago and adjusted its strategy based on trends as the year progressed (Dankert, 2024). This proactive approach allows retailers to better anticipate demand and ensure adequate inventory levels throughout the season.

Additionally, retailers have been focusing on automating their supply chain and expanding their delivery reach to improve efficiency and cut delivery costs (Walmart, 2024). This strategy helps retailers consistently meet customer expectations for fast and reliable delivery, even during the busiest shopping periods.

Mobile Optimization and App Development

Mobile optimization and app development have played a significant role in retailers' strategies to capture the growing mobile commerce market. According to a report by eMarketer, mobile retail m-commerce sales are expected to reach $359.32 billion in 2021, accounting for 72.9% of total e-commerce sales. This growth is driven by the increasing number of smartphone users and the convenience of shopping on mobile devices.

Retailers have been investing in mobile optimization and app development to cater to this growing market. For instance, Walmart and Target have added features like mobile checkout, in-store navigation, and personalized recommendations to their apps, making it easier for customers to shop on-the-go.

Data Analytics and Personalization

Retailers have leveraged data analytics and personalization to create targeted promotions and enhance the customer experience during the extended holiday season. By using data to understand customer behavior and preferences, retailers can create more effective marketing campaigns and improve the overall shopping experience.

For example, retailers have used data analytics to identify early shoppers and tailor promotions to them. In 2024, about 21% of consumers started their holiday shopping in October, and 16% started researching their gifts during this time (Cotton Incorporated 2024 Lifestyle Monitor™ Survey). By targeting these early shoppers with promotions, retailers can capture a larger share of the holiday market.

Retailers have also employed AI and machine learning algorithms to provide personalized gift recommendations to customers, increasing the likelihood of a sale. Additionally, retailers have used data analytics to segment their customer base and create targeted promotions, reducing waste and increasing the effectiveness of marketing campaigns.

In conclusion, the 2024 holiday shopping season is poised to be driven by early, online, and deal-driven consumers, with retailers adapting their strategies to accommodate these trends. By leveraging data analytics, personalization, mobile optimization, and app development, retailers can create a seamless and engaging shopping experience for their customers, driving growth in sales and market share.