Hey Friends,
Sharing a little holiday cheer, this article’s on me…..
It’s Halloween which can only mean one thing….the holiday season has officially arrived, bringing its fair share of anticipation and anxiety to retailers worldwide.
Top retailers are adapting their strategies for the 2024 holiday season by focusing on early sales, mobile commerce, and personalized marketing to navigate economic uncertainties. So, what should we expect this holiday season?
Early Promotions and Mobile Optimization: Major retailers such as Amazon, Walmart, and Target launched early sales, starting with October’s Prime Day, to lock in consumer attention before Black Friday. Mobile commerce is expected to play a major role, with many consumers using apps for browsing and shopping, and retailers employing push notifications and SMS to engage buyers directly.
Inflation-Aware Consumer Strategies: Retailers are mindful of inflation's impact on spending. Many shoppers are prioritizing discounts and early promotions to manage their budgets. In response, retailers are spreading promotions across a longer period rather than relying on a concentrated holiday shopping surge.
Supply Chain and Staffing Preparations: To mitigate potential supply chain disruptions, businesses are closely monitoring their logistics, diversifying supplier networks, and making contingency plans. Staffing remains a challenge, with some retailers offering incentives or outsourcing fulfillment to maintain service levels during the peak period.
Shifts in Consumer Behavior: In addition to deal-seeking, self-gifting trends are emerging, especially among Gen Z and millennial shoppers. Retailers are capitalizing on this behavior through promotions like “buy one, get one” offers and personalized marketing campaigns.
What are the experts saying?
The International Council of Shopping Centers (ICSC) forecasts a 3.0% to 3.5% growth in retail sales for the 2024 holiday season, with food and beverage sales expected to rise 6.0%. Total holiday spending is projected to reach $1.66 trillion. According to ICSC's Holiday Shopping Intentions Survey, 241 million consumers (92%) plan to shop, the highest figure since 2019.
Consumers plan to spend an average of $706 on gifts, the most since 2018. Despite lower inflation, high prices remain a concern, with 90% of shoppers saying inflation will affect their purchases. Many will seek deals and promotions, with 68% of consumers planning more trips to physical stores to find discounts. Loyalty programs will also play a key role, influencing 65% of shoppers.
Physical stores remain central to holiday shopping, with 92% of shoppers intending to visit brick-and-mortar locations. Shopping malls and centers are particularly popular among Gen Z and Millennials. Additionally, omnichannel shopping is important, as in-store visits often lead to online purchases from the same retailers.
Early shopping is common, with 78% starting earlier than usual, and many expect to complete their purchases by mid-December. Gift cards are the most popular gift choice (58%), followed by apparel (52%) and toys (50%). Shoppers are also buying experiential gifts, like dining and activities.
Despite economic challenges, 70% of shoppers feel their financial situation is stable or improved from last year, though concerns about geopolitical and macroeconomic factors remain.
The National Retail Federation (NRF) projects that winter holiday spending will rise between 2.5% and 3.5% in 2024, reaching $979.5 billion to $989 billion, compared to $955.6 billion last year. Online shopping is expected to drive much of this growth, with non-store sales forecasted to increase by 8-9%, totaling up to $297.9 billion. Consumer spending per person is expected to reach a record $902, up $25 from 2023, with the bulk going toward gifts for family members.
Despite the shorter shopping season between Thanksgiving and Christmas (26 days), most consumers (62%) will finish shopping in December. Gift cards, clothing, and books remain popular, with younger shoppers favoring thrift and resale stores for more sustainable options. NRF’s forecast is based on economic indicators such as disposable income, inflation, and employment
For the 2024 holiday season, retailers are gearing up for a modest sales increase, with Deloitte predicting 2.3% to 3.3% growth and Adobe projecting U.S. e-commerce sales to hit a record $240.8 billion. To meet demand, retailers are hiring, though at lower levels than in previous years, due to economic uncertainty and softening consumer spending.
Here’s who’s staffing up for the holidays
Amazon plans to hire 250,000 people across the US as it heads into the holiday season
Dick’s Sporting Goods plans to hire 8,000 seasonal workers, slightly down from prior years.
Target will hire 100,000 seasonal employees, maintaining last year’s target.
Walmart is focused on offering extra hours to existing staff rather than seasonal hiring, potentially 50,000 seasonal hires.
Kohl’s didn’t specify a hiring number but is expected to hire thousands of seasonal employees.
Burlington will hire 24,000 employees, including 1,500 full-time warehouse associates.
Spirit Halloween plans to hire 50,000, a 10,000 increase from last year.
J.C. Penney is hiring over 10,000 seasonal associates with flexible schedules.
Macy’s is scaling back, hiring 31,500 workers, down from 38,000 last year.
Bath & Body Works will hire 30,000, similar to last year’s numbers.
Aldi: 13,000 seasonal workers.
1-800-Flowers: 8,000 hires.
Kohl’s: Hosting recruitment events to hire thousands but hasn't specified exact numbers.
UPS is hiring over 125,000 seasonal workers, focusing on drivers and package handlers.
FedEx aims to add 50,000 seasonal employees to handle increased shipping volumes.
GEODIS, a logistics provider, is set to hire around 585 workers to meet peak season demands.
Despite hiring efforts, a slower economy might result in retailers hiring fewer workers or facing challenges filling positions.
There’s no shortage of holiday deals. These retailers aim to start their sales early to capture holiday shoppers, with the biggest deals clustered around Black Friday and Cyber Monday.
And who can forget promotions and shopping events
Target:
Target is aggressively cutting prices on 2,000 items this holiday season in a bid to outpace competitors during this critical shopping period. This is the retailer's second major price-cutting initiative of the year, following a successful round of reductions over the summer that boosted sales despite cautious consumer spending.
Target Circle Week: October 6–12, 2024
Early holiday savings exclusively for Target Circle members.
Holiday Price Match Guarantee: October 6 – December 24, 2024
Shoppers can price-match items during this period.
Black Friday Early Access: Starts November 3, 2024
Early Black Friday deals begin in-store and online.
Black Friday Weekend: November 29 – December 1, 2024
Major deals across all categories.
Cyber Monday: December 2, 2024
Online-exclusive sales with tech and home goods focus.
Walmart:
Walmart recently announced it was slashing the price of it’s Walmart+ service by 50% during the holidays.
Deals for Days: Starts November 1, 2024
Walmart’s early holiday sales event with staggered deals leading up to Black Friday.
Black Friday Early Deals: November 1 – November 27, 2024
Early access to Black Friday promotions online and in-store.
Black Friday Event: November 29, 2024
Major discounts on electronics, home goods, toys, and more.
Cyber Monday: December 2, 2024
Online-focused deals across a variety of categories.
Walmart+ Weekend: Ongoing during November & December
Exclusive member deals, including free shipping and early access.
Amazon
Prime Big Deal Days: October 13–14, 2024
Amazon’s early holiday sale for Prime members with major discounts.
Black Friday Deals Week: November 22 – November 28, 2024
Daily deals and discounts leading up to Black Friday.
Black Friday: November 29, 2024
Flash deals across tech, home, beauty, and other popular categories.
Cyber Monday: December 2, 2024
Online promotions with an emphasis on tech gadgets and home essentials.
12 Days of Deals: December 3–14, 2024
Daily themed discounts leading up to the holidays.
Best Buy:
Early Black Friday Sales: Starts October 28, 2024
Best Buy kicks off its Black Friday sales with tech-heavy promotions.
Member-Only Early Access: November 1–22, 2024
Exclusive access to doorbusters and deals for My Best Buy members.
Black Friday Event: November 29, 2024
Best Buy’s biggest sale of the year focused on electronics, gaming, and appliances.
Cyber Monday: December 2, 2024
Online discounts on laptops, smart home devices, and other tech.
Extended Holiday Deals: Continues through December 24, 2024.
Shein:
Singles’ Day (11.11 Sale): November 11, 2024
Major global shopping event with steep discounts across fashion, accessories, and beauty.
Black Friday: November 29, 2024
Site-wide sales with heavy focus on fashion and holiday outfits.
Cyber Monday: December 2, 2024
Additional markdowns on beauty, home décor, and accessories.
Holiday Season Sales: Ongoing through December 2024 with daily deals and special collections.
Temu:
11.11 Sale: November 11, 2024
Participation in Singles’ Day with massive discounts on low-cost trending items.
Black Friday: November 29, 2024
Flash deals with a focus on fashion, home goods, and gadgets.
Cyber Monday: December 2, 2024
Online-only promotions, with discounts on trending products.
Holiday Promotions: Ongoing throughout November and December 2024, featuring daily deals, coupons, and flash sales.
The sentiment around the 2024 retail holiday season reflects cautious optimism. The rise of online shopping, alongside the enduring popularity of brick-and-mortar stores, particularly malls and shopping centers, indicates a blend of traditional and digital purchasing behaviors.
Overall, while spending is expected to grow, the cautious approach of both consumers and retailers highlights economic uncertainty and a focus on value-driven shopping. Retailers are adapting by offering discounts, loyalty programs, and omnichannel shopping experiences to meet consumer demand.
Happy Holidays from the TWIR family………