RESEARCH REPORT
Holiday Shopping 2024
A season for sparking inspiration
10-MINUTE READ
October 30, 2024
Consumers are reaching a little deeper into their pockets this season, their average holiday budget rising 4% y-o-y to $613, according to Accenture's 18th Annual Holiday Shopping Survey. And with that cautious display of optimism comes an opportunity for retailers. The key to capturing it? Helping consumers feel confident in their buying decisions. That’s because despite their increased willingness to spend, many say they’re overwhelmed by the array of choices they’re facing and, as a result, experiencing “buyers’ block.” Nearly three-quarters say they’re seeking inspiration. Mindful of spending too much, they also want assurance that they’re getting good deals.
How can retailers meet these needs and stand out in a crowded field, especially with such a short runway between now and the height of the season? Our research has identified several high-potential steps. Read on to understand consumers’ views heading into the holiday season, and insights that will help you engage their spirits and earn their business.
Shoppers are feeling cautiously optimistic
Consumers plan to spend more this holiday season, but cautiously.
75%
say they will have the same or higher shopping budget this year compared with last year
$613
the average amount consumers are planning to spend this season, a 4% increase from $591 last year
43%
bought only what they truly needed in the past 12 months, suggesting growing caution around spending
1 in 3
bought lower-priced alternatives in the past 12 months, a shift from their usual spending habits
Intensifying the hunt for deals
As promotions, incentives and the promise of savings flood the market, ‘deal seekers’ have become the driving force behind holiday shopping. In fact, many of them begin their hunt before Black Friday.
68%
of consumers rated price and value among the most important factors when deciding which retailer to buy from
1 in 3
consumers said they will shop as and when they are offered promotions or discounts
33%
prefer to shop online than in physical stores, driven by their search for better prices and promotions
38%
plan to take the time to search for the best prices this holiday season
4 in 10 consumers plan to do their holiday shopping between early November and early December
This holiday season, retailers will face new challenges: fewer shopping weekends, potential ripple effects of the presidential elections and consumers whose behaviors can shift rapidly. Agility and responsiveness will be key to navigating these uncertainties and delivering a seamless shopping experience.
Seeking inspiration to overcome “buyers’ block”
The hunt for the perfect gift can quickly turn into 'buyers' block'—an overwhelming feeling brought on by the sheer number of options in the market and the daunting time and effort it takes to research each one.
6 in 10
don’t know where to start when planning to buy gifts
67%
feel they need to explore too many places or sources to research their options
72%
say researching potential purchases takes more time and effort than it should
68%
are overwhelmed by the number of options to choose from
79%
wish they could identify the available options that suit their needs more quickly and easily
67%
say it’s too difficult to distil the available information into something meaningful that helps them make a decision
75%
are stressed about making the right purchase decision
70%
are worried they’ll regret their choice
As a result, 82% respondents said they will abandon their shopping carts due to frustration or indecision and nearly 1 in 3 said they might just shop elsewhere. With many shoppers (81%) wishing they could make decisions on what gifts to buy more quickly, easily and confidently, almost three quarters (73%) say they welcome inspiration from retailers when planning to buy gifts.
Deferring decision-making to the recipient
Amid this holiday shopping uncertainty, gift cards are rising in popularity. Why? Because they offer a simple solution to shoppers who’d rather let their recipients make the final decision.
4 in 10
consumers will resort to buying gift cards this year
74%
think that purchasing a gift card is easy and saves time and effort
76%
say gift cards allow the recipient to eventually buy a product or service of their own choice
Despite their popularity, gift cards have downsides. Some 50% of recipients don't use the full balance, while about a third (33%) feel disappointed when they receive one as they feel it lacks personalization.
65%
of consumers received gift cards last year
50%
report an unused balance on gift cards received
$120
average unspent balance on gift cards per consumer in the US
1 in 3
gift card recipients were disappointed the giver hadn’t put the time and effort into planning a personalized gift
Although gift cards provide instant revenue to retailers, unredeemed cards mean missed opportunities. By encouraging redemptions, retailers can turn gift card holders into loyal consumers and drive additional sales.
How retailers can unwrap winning strategies for success this holiday season
The holiday season is full of possibilities. To stay ahead, retailers must act fast to inspire, simplify and deliver. Here are some strategies to connect with the evolving expectations of today’s shoppers.
01
Adapt to deal-hunting consumers with intelligent promotions
Consumers appear to be laser-focused on price and value, which explains why only 21% had started their holiday shopping by August 2024. This shift points to a shorter, more concentrated holiday shopping window in the Golden Quarter (October-December), when shoppers believe they’re more likely to score better deals.
Capitalize on this window by deploying data and analytics to optimize promotions and discounts without eating into margins. Move beyond major sales events like Black Friday and Cyber Monday—extend deals strategically throughout this period. Keep your tactics flexible, centered on the existing inventory, and use AI-enabled technologies to anticipate demand shifts, ensuring consistent performance not just on peak days but all season long.
Engaging price-sensitive consumers with a powerful loyalty program
Target ensures consistent performance throughout the season by offering exclusive promotions for Target Circle members, starting with Target Circle Week from October 6-12. Additionally, Target will launch its Deal of the Day program, offering daily one-day-only deals starting November 1 and continuing through the holiday season. This strategy leverages Target’s loyalty program to kick off holiday shopping, engaging price-sensitive consumers with tailored, value-driven offers over an extended period.1
02
Inspire consumers to stand out and reduce holiday overwhelm
Growing instances of buyers’ block will lead to more abandoned carts. The question is, how can retailers stop it? The answer lies in inspiring and guiding consumers. And our survey reveals a potential way to do this: 48% of consumers (53% of Gen X) prefer shopping in stores to see and assess products firsthand. This gives physical stores a distinct advantage in turning indecision into action.
So how can retailers seize this opportunity? Optimize store layouts with features such as well-curated gift inspiration station or personalization hubs where gifts can be customized with names or messages. Empower store associates to offer expert advice to inspire shoppers—a service 40% of consumers value. Add generative AI kiosks as a "guide by the side" to help personalize gift ideas and offer shopping advice. Why? Because 93% of consumers agree that AI could help them find better gifts, and 88% even trust its recommendations.
At the end of the day, it’s about standing out this holiday season. Start by creating a seamless, inspiring journey by integrating every consumer touchpoint—from advertising and digital marketing to online and in-store experiences. Use data from these touchpoints to craft tailored promotions and personalized advice, offering inspiration without overload. This will position retailers as the trusted advisors shoppers need to navigate a busy market.
Reducing consumers’ decision stress through AI
Etsy's Gift Mode™ is an interactive, AI-powered hub that helps shoppers find unique, personalized gifts by matching them with items tailored to over 200 recipient personas. By blending machine learning with human curation, Etsy simplifies decision-making and offers creative options to consumers. Additionally, features like gift teasers offer a fun, engaging way for shoppers to surprise their loved ones without stress.2
03
Transform gift cards into personalized holiday experiences
The impersonal nature of gift cards, despite their popularity, offers a prime opportunity for reinvention. Retailers must deploy all creative means necessary to make gift cards more meaningful and exciting for both givers and recipients, transforming them from a last-minute fix into a thoughtful, memorable gifting experience.
To do that, start by making gift card use effortless. Simplify the purchase and redemption process—ensure that both your online platform and stores offer easy balance checks, unspent balance reminders and seamless redemption both online and in-store. Then, personalize the experience by using data from consumer touchpoints to suggest products or give tailored advice that match the gift card balance. This turns gift cards into a personalized, engaging experience, boosting consumer satisfaction and fostering long-term loyalty.
Balancing personalization and convenience with gift cards
Starbucks’ digital eGift Card seamlessly blend personalization with ease. Through the mobile app and online portal, users can add images and messages to customize each card to the recipient’s taste. Integrated into Starbucks' digital ecosystem, these cards are easy to redeem in-store or via the app, making it convenient for recipients to manage their transactions. This approach boosts consumer retention and sales, while strengthening brand loyalty.3
The clock might be ticking, but there’s still time to make strategic changes that turn holiday shoppers into loyal, year-round consumers. Step up by putting the consumer at the heart of your strategy—balancing irresistible deals with personalized, memorable experiences. Do that, and this season might just be your best yet.