For consumers and businesses, the holiday season is an enchanting yet hectic time filled with the excitement of gift-giving, special offers, and holiday cheer. However, it is also marked by fierce competition and heightened consumer expectations.

Retailers face a critical opportunity to boost sales and cultivate lasting customer bonds during this peak season. However, successfully maneuvering through the holiday shopping chaos demands a strategic approach and preparedness for busy retail shopping trends, economic shifts, and technological innovations.

Is Holiday Shopping Still Vital for Retailers?

With Black Friday falling later in November this year and shoppers starting earlier, some might wonder if the traditional holiday shopping season is losing significance. Not at all. While consumers may begin their gift hunts earlier in the fall, holiday spending remains a key driver for retailers, and projections show an upward trend in overall expenditures.

Retail data consistently highlights the holiday season, traditionally spanning November and December, as a major contributor to annual sales. In the U.S., this period typically accounts for about 16.7% of total retail sales, with some years reaching 18.4%. These numbers underscore the season’s critical role in the retail industry’s success.

Will the Recent Election Have Any Effect on the Retail Industry?

The recent re-election of President Donald Trump is expected to bring major changes to the retail industry, driven by proposed tariffs, potential disruptions to supply chains, and inflationary pressures.

• Tariffs: The Trump administration plans to introduce a baseline tariff of 10% on all imports, with significantly higher rates—ranging from 60% to 100%—for goods from countries accused of unfair trade practices, especially China. While these tariffs aim to safeguard domestic industries, they will likely result in higher consumer prices. Retailers such as Finally Home Furnishings and Tarptent have already encouraged shoppers to make purchases before the tariffs take effect, warning of substantial price hikes.
• Supply Chain Disruptions: Higher tariffs on imports, particularly from China, are expected to destabilize established supply chains. To reduce the impact of the tariffs, retailers may explore alternative sourcing options in countries with lower labor costs, such as Bangladesh, India, and Pakistan. However, transitioning production is a complex process that may only partially prevent price increases or delays, potentially leading to shortages of certain products.
• Inflationary Pressures: The proposed tariffs are also expected to contribute to rising inflation by increasing the costs of imported goods. According to the National Retail Federation, these measures could impose an additional $46 billion to $78 billion annual burden on American consumers. Apparel prices alone could increase by 12.5% to 20.6%, significantly affecting consumer purchasing power. This will likely hit lower-income households the hardest, driving a shift in spending toward discount retailers and reducing overall discretionary spending.

Top 7 Retail Shopping Trends – Retailers Shouldn’t Miss This Season

1. The Shopping Season Is Expanding

Traditionally, the holiday shopping season in the United States has spanned November and December, anchored by major events like Thanksgiving, Black Friday, Cyber Monday, Christmas, and New Year’s Eve. However, in recent years, the season has steadily grown longer, with significant shopping events now kicking off as early as October.

A critical component of the holiday shopping calendar remains the Cyber Five—the five days from Thanksgiving through Cyber Monday. These days hold substantial weight in holiday retail, with 2024 projections suggesting they will contribute 15.5% of U.S. holiday e-commerce sales. Cyber Monday, in particular, continues to dominate as the biggest online shopping day; in 2023, it raked in $13.93 billion, accounting for a third of Cyber Five’s e-commerce sales. This figure is expected to climb by 5.6% in 2024.

The trend toward an earlier shopping season gained traction in 2022 when Amazon introduced a second Prime Day event in October alongside its traditional July sale. This initiative encouraged consumers to start their holiday shopping weeks earlier than usual. The October event proved so successful that Amazon repeated it in 2023 and this year, branding it as Prime Big Deal Days. To compete, other major retailers like Walmart and Target followed suit, launching their October sales events to align with Amazon’s schedule.

In 2024, Amazon’s Prime Big Deal Days were set for October 8-9, solidifying October as the unofficial kickoff to the holiday shopping season. These early events extended the shopping timeline and shifted some consumer spending away from the traditionally dominant Cyber Five period.

As a response to this evolving trend, retailers are increasingly unveiling promotions and discounts earlier than ever, aiming to capture the attention of consumers eager to get a head start on their holiday purchases.

2. Holiday Spending will Not Slow Down

Despite economic uncertainties in 2024, holiday spending is projected to remain strong. Approximately 71% of Americans plan to spend as much or more on gifts as they did in 2023, reflecting resilient consumer confidence and a commitment to meaningful gifting, even amid financial challenges.

Retailers must prioritize delivering seamless, enjoyable shopping experiences to meet shopper expectations. Timely, efficient, and personalized support is essential to ensuring satisfaction and fostering loyalty during the holiday season.

3. Online Shopping Gains Further Momentum

In 2024, the shift toward online shopping continues accelerating, driven by growing consumer reliance on digital platforms. Online retail spending in the U.S. is projected to increase by approximately 8.4%, reaching an estimated $240.8 billion. Notably, mobile devices are set to account for over 53% of these transactions, underscoring the pivotal role of smartphones in shaping the modern shopping experience.

While physical stores remain relevant for their tactile appeal, only a tiny fraction—7% of shoppers—plan to shop exclusively online. However, a vast majority, around 82%, now incorporate online shopping into their purchasing habits at least occasionally, reflecting the deep integration of e-commerce into daily life.

The rise of mobile shopping platforms is a key factor in this trend. With a substantial share of global e-commerce sales originating from mobile devices, the convenience and accessibility of smartphone shopping are expected to drive even greater adoption in the years ahead.

Online shopping also aligns with evolving consumer preferences for home delivery, a favored option compared to alternatives like in-store pickup. This preference highlights the value consumers place on convenience and streamlined experiences.

For retailers, the challenge lies in refining the online shopping journey to meet rising expectations. This includes implementing more personalized services and adopting mobile-first strategies to cater to the growing base of smartphone shoppers. By enhancing these digital touchpoints, retailers can better capture the opportunities presented by the sustained growth in e-commerce.

4. Last-Minute and Post-Holiday Deals Opportunities

As the 2024 holiday shopping season unfolds, consumers are increasingly planning and budgeting their purchases earlier. Yet, despite this trend, December remains a crucial month for retailers, with several key shopping days surpassing Cyber Monday in sales volume. Significant spending continues well into the year’s final month, reaffirming its importance in the retail calendar.

Retailers also benefit from a lucrative post-Christmas period. During the 2022 holiday season, U.S. consumers spent over $47 billion in the two weeks following December 25. Notably, about half of these purchases were made by shoppers buying for themselves. Their motivations included taking advantage of year-end sales, indulging self-rewards, and replacing essential items.

This post-holiday shopping behavior presents a significant opportunity for retailers to drive additional sales beyond the traditional holiday season. Extending deals and promotions into the new year can help capture this spending, mainly as consumers use gift cards, holiday bonuses, and leftover budgets to purchase.

5. Flexible Payment Options Dominate Holiday Shopping

The popularity of flexible payment options, mainly Buy Now, Pay Later (BNPL) services, has surged in 2024, becoming a defining feature of the holiday shopping season. Cyber Monday is projected to be the peak day for BNPL transactions, with spending expected to reach approximately $993 million. Remarkably, around 75% of these transactions are predicted via mobile devices, reflecting smartphones’ central role in modern shopping behaviors.

This spike in BNPL usage coincides with broader trends in e-commerce. Adobe projects record-breaking online retail spending for the 2024 holiday season, with total sales expected to hit $241 billion—a year-over-year increase of 8.4%. Mobile commerce is a significant driver of this growth, accounting for an estimated $128 billion, or 53.2% of all online holiday purchases.

The widespread adoption of BNPL underscores a broader shift in consumer behavior. Shoppers are increasingly focused on budgeting and planning their purchases, prioritizing deals and discounts, and leveraging the flexibility offered by BNPL services to manage their finances better. These payment options are particularly appealing during high-spending periods, allowing consumers to spread costs over time while taking advantage of holiday sales.

As BNPL continues to reshape consumer spending habits, it highlights the growing influence of technology and innovative payment solutions in the retail landscape. Retailers that embrace and promote flexible payment options stand to capture a larger share of the holiday shopping market in 2024 and beyond.

6. AI Offers Critical Advantage for Retailers

Artificial intelligence (AI) has become a vital retailer tool, offering a competitive edge during holiday shopping. In 2024, AI will be leveraged to enhance customer experiences and streamline operations. Its applications are diverse, with 61% of deployments focused on predictive analytics to anticipate consumer spending trends and 51% aimed at optimizing pricing and promotions. Furthermore, 58.5% of retailers now use AI-driven chatbots to assist customers, underscoring its growing role in customer service.

Despite these advancements, many retailers remain cautious about fully adopting AI. Challenges include a lack of employee expertise (57.5%), concerns about data privacy and security (55%), and discomfort with integrating AI into established workflows (52%).

AI’s influence extends beyond operational improvements, directly shaping the consumer experience. Personalized product recommendations and tailored promotions are becoming standard expectations among shoppers. These AI-driven features enhance the shopping experience, boost customer loyalty, and encourage repeat purchases.

For retailers, strategically integrating AI into customer service, inventory management, and promotional strategies is becoming essential. By embracing AI, businesses can better navigate the competitive holiday market, stay responsive to consumer demands, and position themselves for sustained success.

7. The Rise of “Slow Shopping”: A Shift Toward Thoughtful Consumption

The concept of “slow shopping” is gaining momentum, particularly among Gen Z consumers. This approach emphasizes deliberate and mindful purchasing, where individuals carefully distinguish between needs and wants. It reflects a broader movement toward thoughtful consumption, encouraging buyers to evaluate the necessity and emotional drivers behind their purchases while resisting the “fear of missing out” on deals.

Gen Z plays a pivotal role in driving this trend. They seek authenticity and personalization in their shopping experiences, favoring brands that align with their values and foster a sense of community and ethical engagement. Social media is critical in this process, serving as a platform for Gen Z to discover, research, and evaluate products before purchasing. This digital-savvy generation is pushing retailers to develop seamless, omnichannel experiences that cater to their preferences for thoughtfulness and connectivity.

The shift toward mindful shopping also aligns with the growing demand for sustainable and ethical consumer practices. Younger shoppers, in particular, are willing to pay a premium for environmentally friendly products that resonate with their values. This focus on sustainability adds another layer to the “slow shopping” movement, where purchasing decisions are informed not only by personal needs but also by their broader social and environmental impact.

Retailers that adapt to these evolving expectations by offering meaningful, personalized, and sustainable experiences will be well-positioned to capture the loyalty of this influential demographic.

Conclusion

The 2024 holiday season presents challenges and opportunities for retailers as consumer behavior evolves. While traditional shopping patterns expand into earlier months, the core period remains essential, contributing significantly to annual sales. Factors such as economic shifts, technological advancements, and changing consumer priorities—especially among Gen Z—demand strategic adaptation.

Retailers face increasing pressure to refine their approach. Early promotions, robust online platforms, flexible payment options, and AI integration will play critical roles. Meanwhile, the rise of mindful consumption and sustainability trends highlights the importance of aligning with shopper values. Successfully navigating this complex landscape will require a focus on delivering seamless, personalized experiences that resonate with modern consumers.

Ultimately, businesses that anticipate trends, address challenges proactively, and prioritize customer-centric strategies will be well-positioned for a successful holiday season.