Thirty-two percent of consumers report that they plan to begin holiday shopping before November, according to a survey by Gartner, Inc. A survey of 327 consumers conducted in June 2024 revealed only 14% of U.S. consumers plan to spend more, year-over-year, with 64% of consumers planning to maintain their spend and 21% of consumers pulling back.
“Over three-quarters of holiday shoppers continue to say that higher prices are what causes them to spend more for holiday gifts, not having increased discretionary spending,” said Kassi Socha, Director Analyst in the Gartner Marketing practice. “The effects of high inflation and supply chain issues in the post pandemic economy mean holiday shoppers are still on edge.”
A New Holiday Shopping Calendar
Brands continue to pull forward their holiday marketing and special promotions to late summer, and consumers have followed their lead: nearly a third of consumers are starting to shop for gifts before November (see Figure 1).
“Successful chief marketing officers (CMOs) should begin holiday planning in Q1 and revisit their long-standing promotional and holiday plans throughout the year, launching execution in Q3,” Socha said. “This strategy allows marketing teams to take into account timely consumer insights and market analysis and ensures the hypotheses they made earlier in the year will meet the expectations of their target consumers.”
Online Shopping Continues to Stay Hot As Shoppers Seek Bargains
Consumers stated they are concerned that in-store prices are not competitive with online prices, with 20% of consumers planning to increase their online shopping behavior this year.
A majority (60%) of consumers have at least one concern about shopping in-store this holiday season. After showing interest in returning to in-store shopping last year, shoppers now report a variety of reasons for their concern including higher prices (40%), inventory (28%), selection issues (18%) and security concerns (14%) all of which saw increases in the last year.
Consumers Expect to Return to Hybrid Shopping Behaviors This Holiday Season
This year, 57% of consumers plan to use one or more value-added services during the holiday period, such as Buy Online, Pickup In Store (BOPIS), curbside pickup, same-day delivery or expedited shipping.
“Marketers should promote value-added services to differentiate their offerings. Interest in services like BOPIS, and same-day delivery indicate that consumers prefer the convenience and money-saving aspects of in-store shopping over the experience itself,” said Socha.
Extended Holiday Return Policies
Extended return policies are a growing aspect of consumer preference as holiday shopping continues to shift earlier each year.
“Consumers want the ability to return gifts well outside of the traditional 30 – 60 day window of purchase,” said Socha. “This is particularly true for younger shoppers with over seven out of 10 reporting they would be at least a little persuaded to purchase if offered an extended holiday return policy.”