Experian’s annual holiday trends report showed some deviation from 2023 and 2022 while buttressing the findings of other consumer surveys.
Researchers at the credit ratings firm found that “online spending continues to remain around a third of all holiday shopping spending” and noted that it is “starting to see online shopping slow a little bit and level out — people are going back in-store and the high amount of online shopping that we saw during the pandemic is starting to return to pre-pandemic behaviors.”
While online shopping has eased, researchers at Experian found that 66 percent of holiday shopping is pegged to be done in-store, “a one percentage point decrease between 2022 and 2023,” authors of the report said. “Digital and physical experiences work together,” the authors of the report said. “Retailers should have a multichannel plan to reach consumers, tailoring their approach to their target audience and product, and create engaging in-store experiences to drive visits.”
Other findings of the survey include that more than one in three Generation Z and Millennials “anticipate spending more” while Generation X and Boomers “are most likely to say they’ll spend the same amount as last year.”
The survey found that younger shoppers prefer shopping online, “accounting for 36 to 38 percent of their holiday spending compared to 31 to 34 percent for older age groups,” while older shoppers favor in-store shopping, “making up 66 to 69 percent of their holiday spending versus 62 to 64 percent for younger shoppers.”
The report’s authors also noted that in 2023, phones became the top online holiday shopping platform and as it continues, they urged marketers to adjust their strategies. “Mobile apps keep customers connected by integrating features such as loyalty programs, exclusive offers, digital wallets and seamless transitions between online and physical retail channels, including click-and-collect services,” the report stated. “Reaching consumers on their mobile devices should be a crucial component of your holiday marketing strategy.”
Other findings of the survey revealed that younger consumers, aged 24 to 44, “are avid coupon users, driven by a strong focus on savings, while older consumers (55-plus) prioritize convenience with one-stop shopping habits.”
As such, Experian said marketers need to prepare and plan for an extended promotional period. “Strategize and schedule your marketing campaigns and sales initiatives to maximize impact during the extended season, particularly focusing on the peaks of Cyber Week and the week before Christmas,” they said.
For more business news, see:
Holiday Hiring Challenges Rise as Service Industries Gear Up for Busy Season
Gen Z’s In-store Shopping Demands Mimic Online Expectations
Holiday Sales Forecast Unveils Nuanced Consumer Spending Trends
