I hear from retailers that sell mattresses that the recent Black Friday sales holiday felt like those of old: Busy stores, sales tickets and interested consumers looking to kickstart the holiday season with a new mattress.
That’s cause for celebration and, perhaps, a sign that consumers are ready to hop back into mattress buying.
No doubt, the holiday season is upon us, and this year, Experian’s “2024 Holiday Spending Trends and Insights Report” offers compelling predictions for consumer behavior, shaped by recent economic trends and evolving shopping preferences. Here are three key insights from the data drawn from credit and debit card usage across 800 top retailers to consider as we march into the busiest shopping months of the year:
Savings-driven shopping takes center stage
In light of inflationary pressures, consumers are expected to stick to their savings-first mindset. Younger shoppers, particularly those aged 24 to 44, are expected to shop discount and mass retailers, seeking value-driven purchases. Coupon usage is predicted to surge, influenced by families with 64% of coupon users coming from households with children.
This trend underscores the need for retailers to focus on cost-conscious promotions and tailor messaging to budget-savvy audiences.
In-store spending maintains its dominance
While online shopping solidified its position during the pandemic, it’s now stabilizing at roughly one-third of total holiday sales. Experian forecasts that in-store shopping will dominate this season, fueled by consumers shopping department and discount stores for in-person experiences.
For retailers, this calls for a dual-channel approach, integrating engaging in-store promotions with complementary digital campaigns, especially through mobile apps that bridge the gap between online and offline channels.
Connected TV (CTV) emerges as a key advertising channel
Connected TV continues to gain traction, with more than two-thirds of the U.S. population using the medium. Experian highlights CTV as the top channel for reaching holiday shoppers in 2024, thanks to its capacity for delivering targeted and personalized advertising campaigns.
This makes it a powerful tool for retailers looking to connect with diverse demographics, whether for promoting Cyber Monday deals or highlighting in-store offers.
These predictions emphasize the importance of flexibility and responsiveness in holiday marketing strategies. By understanding and addressing these trends, businesses can maximize engagement and drive sales during this critical season.
We’re beyond the U.S. elections, something that many within the industry have pointed to as pushing consumers into their cocoons. According to Experian, there is a documented election effect. Holiday sales in the U.S. posted a 4.1% year-over-year increase in 2016 and an 8.3% year-over-year increase in 2020 following presidential elections.
Another bright spot as we turn the calendar toward the end of 2024? Experian says 35% of holiday shopping is done in December, peaking the week before Christmas. There’s no reason to think that trend will change this year.
The big question remains whether a mattress sits atop wish lists this season. Maybe guests are coming for the holiday, and there’s a guest room that needs spruced up.
There are glimmers of happiness and joy in the retail sector. The mystery remains: How do you make sure you capture a share of the dollars consumers are willing to spend?
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