The 2024 holiday season in the U.S. is expected to build on trends from previous years, but with noticeable shifts in consumer behavior, economic factors and digital strategies. Online shopping, which has been growing steadily, will likely dominate once again, but how it unfolds will differ from previous years.

Economic Factors and Consumer Behavior

Economic challenges such as inflation and layoffs are key factors affecting consumer spending habits. While online shopping has traditionally seen year-on-year growth, inflation has heightened price sensitivity among shoppers. 

According to reports, despite an increase of 3.1% in holiday spending during 2023, driven by discounts and early sales, the 2024 season will see even more focus on deals and promotions to lure consumers navigating tighter budgets. 

Discounts, especially those offering at least 30% off, are likely to dominate marketing strategies, as shoppers seek out value deals. Retailers are also increasingly turning to “Buy Now, Pay Later” (BNPL) options to offer additional flexibility for cash-strapped consumers.

Promotions will begin earlier in 2024, reflecting a trend that began in 2023, where the holiday sales calendar extended into October. Retailers are capitalizing on early shopping behaviors by rolling out promotions and deals well before the traditional Black Friday and Cyber Monday periods. 

This has allowed shoppers to spread their spending over months, alleviating some of the pressure on their budgets and helping retailers better manage inventory and demand. Retailers that can provide continuous engagement, particularly through personalized marketing, are likely to see success.

The Omnichannel Experience

A defining aspect of the 2024 holiday season is the expansion of the omnichannel experience, where the lines between online and in-person shopping blur. Consumers now expect seamless integration across all channels, whether they are shopping in-store, online, or via mobile. 

This “omni experience” is becoming increasingly important as consumers move fluidly between browsing products on their mobile devices, shopping in physical stores, and completing purchases online. According to studies, nearly half of consumers favor a hybrid of in-store and online shopping, highlighting the importance of providing consistent experiences across both.

To stay competitive, retailers are focusing on integrating their eCommerce platforms with physical stores, using options like Buy Online, Pick Up In-Store (BOPIS) and curbside pickup, which grew significantly during the pandemic and remain popular. Offering these services helps bridge the convenience of online shopping with the immediacy of in-store purchasing, further enhancing customer satisfaction during the busy holiday period​.

Mobile Commerce and Social Shopping

Mobile commerce (m-commerce) is set to play a pivotal role in holiday shopping this year, with predictions suggesting it could account for nearly 28% of eCommerce growth. As more consumers use smartphones to browse and shop, retailers are optimizing their mobile platforms to accommodate this growing demand. 

However, despite mobile’s increasing traffic, desktop platforms still lead in terms of conversion rates, as many consumers prefer completing purchases on desktop devices, where conversion rates are higher. Social media shopping is another rising trend. Platforms like Instagram and TikTok are not only helping consumers discover products but also enabling them to purchase directly within the apps. 

This is especially important for reaching younger demographics, such as Gen Z and Millennials, who are heavily influenced by social media. Retailers are responding by ramping up their social commerce strategies, using influencers and easy shopping experiences to convert social media engagement into sales.

Shipping and Fulfillment

Speedy and reliable fulfillment is more crucial than ever. With consumers now accustomed to faster delivery windows and flexible fulfillment options, retailers are refining their logistics to ensure seamless delivery experiences. The availability of same-day delivery, expedited shipping and transparent tracking options will be key differentiators for retailers during the 2024 holiday season.

To cope with the extended shopping calendar and growing demand for fast shipping, retailers are also focusing on optimizing inventory management and logistics. Technologies like real-time data analytics are being used to ensure that products remain available and to forecast demand more accurately. Furthermore, given that many consumers are starting their shopping earlier, retailers must have sufficient stock from the outset to capture early sales​.

In summary, the 2024 holiday shopping season is poised to be an exciting period of change, where customer experience, technology and advanced marketing strategies will play critical roles in adapting to both new opportunities and challenges.