The holiday shopping season has arrived, and we are already seeing some fascinating shifts in consumer behavior and spending habits. From Thanksgiving weekend to Cyber Monday and beyond, the landscape of retail continues to evolve, blending in-store and online experiences with new trends in consumer preferences.  

2024 Holiday Shopping Trends 

A Mixed Bag of Numbers for Thanksgiving Weekend 

The National Retail Federation (NRF) and Prosper Insights & Analytics reported that 197 million consumers shopped during the five-day period from Thanksgiving through Cyber Monday this year. While this figure fell short of 2023’s 200.4 million, it exceeded NRF’s earlier forecast of 183.4 million. In-store shopping saw a resurgence, with 126 million consumers making purchases at brick-and-mortar locations, a rise from 121.4 million in 2023. Conversely, online shopping during the same period declined, with 124.3 million shoppers compared to 134.2 million last year. Despite this drop, Black Friday solidified its dominance as the most popular online shopping day. 

Brick-and-mortar shopping proved to be obsolete. Real estate investment trust Simon reported a 6.4% year-over-year increase in foot traffic at its centers during Black Friday weekend. Traffic increases were maintained over the entire holiday weekend, with Friday being up 5.9%, Saturday up 6.3%, and Sunday up 8.2% over last year.  

Even with a decrease in online Black Friday shopping, online spending on Cyber Monday reached $13.3 billion, a 7.3% increase from last year. This record-breaking day capped off a November-to-December period that saw a 9% year-over-year increase in online spending, totaling $131.5 billion. A large driver of this increase was the continued growth of mobile shopping. Mobile shopping represented 57% of Cyber Monday’s sales ($7.6 billion), a 13.3% increase from 2023. This growth is a stark contrast to 2019, when only 33% of Cyber Monday sales were made via mobile devices and could lend itself to the trend of consumers shopping on their devices while in-store to find the best deals.  

The Social Media’s Influence on Gift Decisions 

Social media has become a critical factor in influencing holiday gift purchases. A survey conducted by marketing agency MGH highlighted that 55% of consumers found holiday gift ideas via TikTok. Additionally, 69% of respondents noted that unboxing videos, customer reviews, and product demonstrations played a significant role in their purchasing decisions. Embedded shopping platforms like TikTok shop also add additional ease to the consumer shopping experience.  

No area of retail is unaffected by the surge in social media influence. The survey indicated that the most searched gift categories on social media included: 

• Food and Beverage – 45% 
• Personalized Gifts – 42% 
• Tech Gadgets – 41% 
• Beauty and Skincare Products – 39% 
• Apparel and Accessories – 39% 
• DIY Gifts – 38% 
• Home Décor and Experiences – 36% each 
• Children’s Games and Toys – 33% 

These statistics underscore the growing importance of social platforms as tools for discovering and researching holiday gifts – a trend that we have seen growing over the last couple of years. These categories can also be a key indicator of where businesses should continue to invest resources to appeal to changing customer demands.    

Customers are Adapting to Tighter Budgets 

As many consumers continue to have constrained budgets due to rising costs of living, we have seen rapid growth in “Buy Now, Pay Later,” or BNPL. BNPL services hit an all-time high on Cyber Monday, accounting for $991.2 million in spending—a 5.5% increase from the previous year. Notably, 75% of these transactions were conducted on mobile devices. This surge reflects consumers’ desire for flexible payment options to manage their holiday budgets. 

The adoption of split-payment options has also become widespread across demographics. According to a study by Splitit and PYMNTS Intelligence: 

• 75% of Baby Boomers plan to use flexible payment options for holiday purchases. 
• 68% of Gen X will leverage these plans. 
• 65% of millennials plan to do the same. 
• 60% of Gen Z intend to use BNPL services. 

The trend is evident across income levels, with 60% of survey individuals earning over $100,000 and 48% of those earning under $50,000 turning to BNPL services for holiday shopping. These numbers highlight the broad appeal of flexible payment solutions in alleviating the financial pressures of the season. 

What Do These 2024 Holiday Shopping Trends Mean for Retailers? 

These 2024 holiday shopping trends reveal a dynamic interplay between online and offline retail channels. Retailers should consider the following strategies: 

1. Enhance In-Store Experiences: The rise in brick-and-mortar shopping indicates a renewed consumer interest in tactile, immediate shopping experiences. Retailers should focus on creating engaging and convenient in-store environments. 
2. Leverage Social Media: Platforms like TikTok are critical for influencing purchasing decisions. Retailers should invest in creating engaging content, such as unboxing videos, to capture the attention of online audiences. 
3. Optimize Mobile Shopping: With mobile accounting for over half of Cyber Monday’s sales, optimizing websites and payment processes for mobile users is essential. 
4. Expand BNPL Options: The increasing popularity of flexible payment plans, like BNPL, highlights the importance of offering diverse financing options to cater to all consumer demographics. 
5. Focus on Omnichannel Strategies: Integrating online and offline channels ensures a seamless shopping experience, capturing consumers wherever they choose to shop. 

The 2024 holiday season showcases both continuity and change. While traditional retail channels are seeing a revival, the digital realm continues to dominate in terms of convenience and reach. Retailers that embrace these evolving trends are poised to succeed in the competitive holiday market and beyond. Our retail experts are here to help guide you through these trends – reach out to us today to get started.