Retailers face a complex holiday shopping season this year, with fewer weekends, the effects of a looming election, and unpredictable consumer behaviour. Despite these challenges, there are key trends they should focus on to drive sales effectively.
Shoppers are projected to spend more this year, with Accenture’s survey showing an expected average of $613 per shopper, up from last year’s $591. While this is good news, retailers should remain cautious as price and value still play a crucial role in purchase decisions. The survey also found that 68% of consumers prioritise price and value, and 30% plan to shop only when deals or discounts are offered. Although big sales events like Black Friday remain influential, retailers should avoid aggressive discounting that could erode profit margins. A flexible marketing plan focused on inventory management can help them navigate demand fluctuations.
Gift cards represent another significant revenue opportunity. Statista estimates the US gift card market was worth $200 billion last year, and four in 10 consumers are likely to buy gift cards this season. While gift cards offer convenience, many consumers feel they lack personal touch, leading to unredeemed balances, with an average of $120 left unused per recipient. Retailers can increase engagement by enhancing the gift card experience, from easier balance checks to customisation options like those offered by Starbucks. Personalisation could help transform gift cards into memorable, thoughtful gifts that encourage repeat visits and brand loyalty.
The overwhelming variety of gift options can also discourage some shoppers from making purchases. Accenture’s survey indicates that 68% of consumers feel ‘buyers’ block’ due to too many choices, with 82% likely to abandon shopping carts out of frustration. Retailers can address this by guiding and inspiring customers at each stage of their shopping journey. Helpful in-store associates, creative store layouts, and areas for personalisation can make shopping more enjoyable. Gen AI also has potential here; 93% of shoppers agree AI can help them find gifts more easily, and platforms like Etsy are already using AI to provide personalised gift suggestions.
Retailers that adapt to these trends and embrace personalised customer service and innovative technology will likely stand out in a crowded market. Providing memorable shopping experiences and showcasing their brand’s unique strengths will be essential to winning over customers and building loyalty beyond the holiday season.
itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors. Itim adds retail value by helping multi-channel retailers optimise their business and their stores to improve financial performance and compete more effectively with the “Amazons”.
