Five ways retailers can succeed this holiday shopping season

There is no doubt that 2024 has been a challenging year for retail, and many may be unsure what this year’s holiday shopping season will look like.

Encouragingly, our Holiday Retail Report reveals that spending among UK consumers around Black Friday Cyber Monday (BFCM) 2024 is set to increase by 21% compared to 2023 – rising from £131.67 to £159.22 on average per shopper.

Our data shows that consumer attention has already shifted towards holiday retail, with sales of fireworks and firecrackers increasing by a massive 426.3% in September and advent calendars by 212.1%.

So, how can retailers avoid getting left behind and capitalise on encouraging consumer intentions this holiday season? 

1. Go beyond the price tag 

Discounts remain an essential tool for retailers, with 50% of shoppers saying they drive loyalty.

Our research found that 83% of consumers compare prices to find the best discounts and 65% plan to shop during sales to save money. This will be encouraging for retailers such as The Essence Vault, who are bringing back their Buy One Get One Free sale this year.

However, it’s not just the price point that’s taken into account by shoppers: free shipping and/or returns are top loyalty drivers for 42%, suggesting that free and fast shipping could be just as important to incentivise consumers as discounts.

2. The power of social shopping 

Our report shows younger shoppers (25-34) are more likely than other age groups to increase their spending this Black Friday.

As the generation closest to the forefront of new shopping trends and technologies, retailers must provide a tailored and impactful shopping experience that continuously matches – and exceeds – expectations for this consumer profile.

There is a growing trend towards social media shopping amongst this age group – 59% of 18-24 year-olds say they’d buy on Instagram, and even more on TikTok (62%).

This highlights the need for retailers to ensure they are meeting different customer profiles across every possible surface.

3. Unlock unified commerce

A hybrid approach to shopping remains popular. Two in five British consumers (44%) plan to evenly split their shopping online and offline, with 59% buying small things online but going into stores for larger purchases.

With such a variety of channels and demographics, there is a lot of work for retailers to do.

The good news is that this can be eased by adopting a unified commerce approach, which connects all the dots across sales channels into one view of the customer and ensures a consistent and engaging service.

4. Tap into new technologies

With the pace of change in the retail sector, it is crucial that brands offer the latest shopping tools to consumers. For example, thanks to increased adoption of Shop Pay, The Essence Vault has seen a 30% growth in sales this year.

Interest in AI and new digital technologies such as VR and AR are growing among consumers. Over a third say they believe it will make the shopping experience better, improve the service they receive from brands and their in-store experience (all 36%).

Now is the time for brands to differentiate themselves by delivering AI-enhanced customer experiences.

5. Optimise your personalisation

Providing a personalised service to many customers at once is rapidly becoming a priority for retailers. A theme that consistently comes up when speaking to consumers is the desire for fast, efficient and personalised experiences from the brands they interact with.

One in five shoppers (21%) say they seek out independent brands, suggesting an appreciation for more local or personalised buying experiences. Combining unified commerce with AI technologies can lighten the load on retailers and unlock personalisation at scale.