Christmas is the happiest and most joyful time of the year... unless you work in retail. If you do, you're probably already feeling the stress of gearing up for the flood of holiday shoppers. Christmas and the holiday season mark the peak of shopping activity all year, and retailers need to be ready to make the most of it, ensuring they end the year on a high note with strong profits. In this blog post, we'll dive into how you can have a truly Merry Christmas as a retailer by tapping into the latest shopping trends and making this season your best yet.

2024 Holiday Season Trends to Watch Out For

Self-Gifting Surge

Self-care and self-gifting are gaining traction this year. With more people, especially younger people purchasing gifts for themselves, “little luxuries” to indulge in. According to DigiCommerce, 61% of shoppers, particularly millennials (73%) and Gen Z (68%), likely to purchase items for themselves while shopping for gifts. This means shoppers are expecting to treat themselves as well during the holidays.

You can leverage this trend by focusing your marketing efforts on individuals and treating yourself during the holidays. To attract such customers you should focus on good social presence and provide social commerce as those generations are highly active on social media and more likely to purchase when their desires are visible there.

Increased Focus on Discounts and Research

High inflation and living costs are making shoppers more mindful and calculated about their spending. As a result, we can expect consumers to conduct deeper research before making a purchase, with discounts and price cuts playing a more significant role in their decisions. According to a study, 60% of consumers prefer clear "discounts on everything" over flash sales or bundle deals. Additionally, these offers should provide at least a 30% discount across categories to effectively drive purchases.

To navigate this trend, retailers should maintain a strong online presence and use retargeting to reach customers who previously browsed their products, offering compelling discounts. Consider providing special deals with meaningful price cuts.

Increase in mobile purchases

Each year, we can expect an increase in mobile purchases, particularly due to younger generations entering the holiday shopping market. Gen Z shoppers are more likely to make purchases via mobile devices, with around 15% of them buying directly from social media platforms, according to eMarketer. The rise of budget-friendly e-commerce sites like Shein and Temu has also fueled the rapid growth of mobile shopping, driving competition in this space.

Retailers must ensure their websites are optimized to handle larger volumes of users, free of bugs that could prevent orders, and as seamless as possible, minimizing any disruptions to the purchasing flow.

Rapid Delivery and Flexible Returns

During the holiday season, shoppers tend to make more online purchases and impulsive purchases. Offering a flexible return policy can provide peace of mind, encouraging customers to buy more. Additionally, with time-sensitive occasions, shoppers place significant importance on delivery times to ensure gifts, decorations, and outfits arrive on schedule.

To meet these heightened expectations, it’s crucial to remain flexible. Consider hiring additional staff for logistics and fulfillment to offer next-day or same-day delivery, including in-store pickup. Easing return criteria by extending the return period and offering free returns for online purchases or in-store returns can also help boost customer confidence during the holiday shopping season.

Sustainability and Ethical Shopping

Sustainability and ethical sourcing remain important considerations for shoppers, especially during the holiday season when they seek to make purchases that align with their values and leave them feeling good about their decisions.

To make sure your potential customers are aware of your ethical practices, clearly communicate them. Choose recycled and sustainable packaging options, and provide opportunities for customers to learn about your brand’s efforts to promote sustainability and ethical practices. If you participate in any community initiatives, be sure to highlight them—people are more likely to support businesses that contribute to a good cause. However, avoid making false claims, as this can undermine trust.

As the holiday season approaches, retailers have a prime opportunity to end the year on a high note by embracing the latest trends and meeting the evolving expectations of shoppers. From self-gifting and increased mobile purchases to a focus on discounts, rapid delivery, and sustainability, this is the time to adapt your strategy to capture the holiday spirit. By offering flexible returns, promoting ethical practices, and ensuring a seamless shopping experience, you can not only boost sales but also build lasting relationships with customers. With the right preparation and approach, you can ensure a truly Merry Christmas for your business and your customers alike.