Hallmark channel just completed its annual Christmas in July, so can the holiday shopping season be very far off? It’s summertime now, but only a short time until the shopping season begins in earnest. Start now to prepare for the upcoming shopping season so you can be prepared with inventory, staffing, marketing, and more. Here are some things to think about.
Predictions for the holiday shopping season
It’s vital to get an idea of what the upcoming holiday shopping season will look like so you can scale your activities accordingly. It seems a lot of people have crystal balls, and here’s what they say:
- eMarketer predicts the 2024 season will follow 2023 patterns, with overall sales growing 4.8%, but ecommerce sales growing 9.5%. But consumers will be looking for deals.
- SalesForce predicts “a challenging season ahead for shoppers and retailers.” The reason: consumer debt has grown, so there’s a reluctance to take on more debt. A predicted 63% of price-conscience consumers will purchase from Chinese shopping apps. It also predicts that two-thirds of shoppers are waiting until Cyber Week to make their big purchases.
- Salsify predicts spending in 2024 will be about the same as in 2023 for about 65% of consumers, with only 15% upping their spending. Spending predictions vary with generations—GenZ, Millennials, GenX, and Baby Boomers. More than a third (36%) are bargain hunters looking for discounts and savings.
What to think about
The “shopping holiday season” used to be confined to November and December, starting off with Black Friday on the day after Thanksgiving. This is no longer the case. In fact, 16% of holiday shopping began in June and it’s expected that only 5% will shop in the last 2 weeks of December this year. Nearly a third (27%) begin in October. Recognizing when shopping is likely to occur greatly influences your business decisions.
When to hold sales.
The calendar is one thing; your target audience and the products you sell are other factors in deciding when or if to hold sales. For example, if you’re targeting boomers, then October is a good time to start; this generation does not focus on Cyber week. In contrast, GenZs and Millennials favor Cyber week.
How many seasonal workers to take on.
As always, it’s tricky for retailers to hire sales help for the holiday shopping season. You want to have enough workers to serve your customers well, but you don’t want to hire more than you need. By projecting your sales—and when they are likely to occur—you can better estimate the number of seasonal workers you’ll want to engage. Kohl’s already posted a sign up for those interested in holiday positions.
What marketing strategies to use.
You can’t ignore social media, which is now responsible for providing gift inspiration and well as direction to shopping opportunities. For example, Instagram and TikTok are widely viewed by younger generations for getting gift ideas.
SalesForce has a free 2024 Retail Holiday Planning Guide to help retailers learn to use data and AI to create holiday moments that keep customers loyal.
Final thought
Consumers this upcoming holiday season will surely follow the advice from Smokey Robinson and The Miracles’ 1960 song: “My mama told me, you better shop around. Whoa yeah, you better shop around.”
Start now to think about what you need to do and create a schedule for action.
To find additional resources on holiday shopping, see blogs here.
