A Texas A&M University retail marketing and e-commerce expert anticipates an increase in sales this holiday season, with a surge in both online and in-store purchases.
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As the holiday shopping season continues, a retail marketing and e-commerce expert at Texas A&M University is forecasting a blend of online and in-store spending that is poised to shatter records.
“We’re going to see two records this year — one for online shopping and a second for in-store shopping,” said Thomas McMillan, professor of practice in marketing and director of the Center for Retailing Studies at Texas A&M University’s Mays Business School.
McMillan said consumers have fully shaken off the pandemic and are eager to return to the physical retail experience, valuing the social aspect of shopping with friends and family. This pent-up demand is driving an expected 2.5 to 3% increase in brick-and-mortar sales over the holiday period — a figure that would represent a new high.
“Retailers are going to be competing heavily for that 2.5 to 3% growth in in-store traffic,” McMillan said. “They’ll be offering deep discounts and attractive deals to lure consumers into their physical locations.”
However, the shift back to in-store shopping doesn’t mean online sales will falter. McMillan predicts e-commerce growth will continue, albeit at a slower pace than previous years.
“We’re going to see online sales growth south of 10% this year,” he said. “It’s still great growth, but not the double-digit numbers we’ve become accustomed to.”
Driving this hybrid shopping behavior is the growing preference among consumers, especially younger demographics, for a seamless omnichannel experience. McMillan cited data showing an 89% increase in 18- to 24-year-olds planning to shop in stores this holiday season.
“They want the social experience: going out with friends, grabbing a bite to eat, catching a movie and doing some shopping all in one trip,” McMillan said. “It’s reminiscent of the old mall culture, but with a modern twist.”
Retailers are adapting to meet these evolving consumer expectations. Mobile shopping is expected to be a “darling” as it evolves from browsing to buying on their phones, and stores offer personalized deals and experiences through branded apps.
“Consumers are looking to stretch their budgets, so they’re going to be very deal-oriented,” McMillan said. “Retailers know they have to compete hard to capture those holiday dollars.”
From apparel and accessories to consumer electronics and jewelry, shoppers will have a wide array of products to choose from — many at deep discounts as stores vie for their business.
“Ultimately, the 2024 holiday shopping season is shaping up to be a unique blend of old and new, as consumers seamlessly navigate both physical and digital retail environments to find the perfect gifts,” McMillan said. “Retailers that can deliver a cohesive, convenient omnichannel experience are poised to unwrap record-breaking sales.”