EXCLUSIVE: Survey reveals positive holiday shopping trends
A new set of consumer data exclusively released to Chain Store Age offers hope to retailers looking for a happy holiday season.
According to the recent survey of more than 1,000 shoppers conducted by artificial intelligence consulting firm Ankura, 24% of respondents had already started holiday shopping as of early October and 98% expect to start before mid-December, consistent with 2023 patterns.
Younger respondents (Gen Z and millennials) are trending more toward earlier shopping compared to 2023. Only 23% of respondents plan to spend less this holiday season, a significant decrease from 31% in 2023, while 58% intend to maintain their spending at the same level as 2023.
Younger respondents, particularly Gen Z, are more inclined to increase their spending year-over-year during this holiday season.
In terms of holiday shopping events, Amazon Prime Day has become the most popular, with 49% of respondents participating, surpassing Black Friday, which attracts 46%. Among surveyed online shoppers, Amazon Prime Day is particularly popular, with 56% showing a strong preference for it
[READ MORE: Amazon Prime Day crushes records with $14.2 billion in sales]
More than four-in-10 (43%) respondents take part in Cyber Monday. Surveyed in-store shoppers are less inclined to participate in these peak holiday shopping days
When it comes to payment methods, 60% of respondents plan to use cash or debit cards for holiday purchases, while 41% intend to use credit cards. Gen Z and millennials respondents showed an especially strong preference for cash and debit options, with 69% and 65% respectively choosing these methods.
In addition, buy-now-pay-later services are gaining popularity among younger generations, with 47% of surveyed Gen Z and 40% of millennials expecting to increase their usage of these services.
The survey also indicates that the influence of social media on holiday purchases has slightly decreased, with 27% affected in 2024 compared to 34% in 2023. Two-thirds (65%) of respondents are influenced by loyalty programs when choosing where to buy gifts, with surveyed members of the silent generation (born 1928- 1946) less motivated than other age groups.
The survey also revealed trends in consumer sentiment in several areas beyond holiday shopping:
Where, why and how consumers shop
- Amazon, Walmart, and Target remain the dominant preferred retailers for consumers and also lead in shopping app popularity.
- Key drivers for choosing online shopping include overall convenience (46%), free shipping, which has increased to 45% from 39%, and lower prices, which have risen to 36% from 31%.
Delivery
- There has been a notable increase in consumers selecting the cheapest delivery option, rising to 40% from 26% in 2023.
- The preference for home delivery has declined to 39%, down from 58% in 2023.
Economy/inflation
- Consumer sentiment about the U.S. economy has improved, with positive perceptions rising to 24% from 17% in 2023, and negative sentiment decreasing from 59% to 48%.
- Among older respondents, boomers have shown a year-over-year reduction in negative sentiment from 68% to 49%, while the silent generation's pessimism has dropped significantly from 66% to 33% since 2023.
- Contrary to trends among older respondents, Gen Z (ages 18-27) negative sentiment has risen to 49% from 39% in 2023.
- Fewer respondents now report that their family economic situation has worsened, with this figure decreasing to 29% from 47% in 2023
- Expectations for personal economic situations over the next 12 months have significantly improved, with optimism rising to 37% from 26% in 2023. Gen Z stands out as an exception, with their outlook becoming more negative, increasing to 37% from 28% in 2023.
- Inflation continues to be the main reason for those planning to reduce their spending. Food prices remain a significant concern, though the impact of fuel prices has lessened.
- Among Gen Z respondents, housing costs are the top concern at 41%, followed by inflation at 37% and reduced income at 32%.
"Based on our findings, the 2024 holiday shopping season is shaping up to be quite dynamic for retailers," said Chris Ventry, managing director in Ankura’s performance improvement practice, in commentary emailed to Chain Store Age. "Several key trends have emerged surrounding consumer economic sentiment, online versus in-store preferences, payment methods, and overall spending decisions."
