2024 Holiday Shopping Trends: 9 Key Insights to Increase Sales
9 Ways to Win with Consumers This Holiday Season
Despite less favorable economic conditions due to an increased cost of living, shoppers across the globe are determined to make this year’s gift giving season successful. Budgets are being made, reward offers identified, and payment methods chosen. Will shoppers spend as much as they did last year for the holidays? Will they shop in-store or online? How much will social media and marketplaces influence holiday purchases? Will payment acceptance be a dealbreaker for shoppers? Top findings from this 2024 holiday shopping survey can answer these questions and more.
To help merchants boost sales, create loyalty and promotional programs, and stack their shopping channels with the best payment methods, Discover® Global Network commissioned a survey of 1,007 global shoppers to uncover how consumers plan to purchase gifts for the 2024 holiday season. The results revealed nine trends positioned to inform merchants as they look to attract business from holiday shoppers.
1. Stay budget-friendly
Some shoppers take on payment plans or credit while shopping for the holidays. The survey revealed that 21% of global consumers still had debt in May 2024 from their holiday shopping last year. Budgeting for gift purchases is important to avoid debt, especially for younger consumers who are less likely to have a stable source of income. This year, a majority of consumers (65%) plan to create a budget for their holiday shopping. With that in mind, merchants can appeal to shoppers by advertising pricing and bundling merchandise in a way that makes sense for the budget-conscious shopper. This may include offering special promotions throughout the holiday shopping season.
Q: Do you plan to create a budget for your holiday shopping this year? Base: All respondents (n=1,007). Source: Survey commissioned by Discover Global Network, 2024.
2. Prepare for fewer gifts, conservative spending
The state of the global economy projects modest global growth; however, inflation remains high in some countries, exacerbated by geopolitical tensions.1 Chief economists’ outlooks improved throughout the first half of the year, resulting in a cautiously optimistic stance for the global economy.2 These factors are likely to influence global shopping behavior, and when asked, some shoppers (32%) reported they may reduce expenses by buying fewer gifts this year.
Consumers’ spending plans vary by region, however, with a majority of Asian respondents (45%) planning to spend more on gifts this year than last year. By contrast, only 11% of European and 11% of North American respondents plan to spend more. The majority of European (69%) and North American (68%) are instead planning to spend about the same amount this year compared to last year. Regardless of region, there are also differences to be seen across generational spend, with 38% of Gen Z and 26% of Millennials planning to spend more this year, compared to only 17% of Gen X, 11% of Baby Boomers, and 18% of Silent Gen consumers.
Q: With your expected holiday shopping in mind, how does this compare to the amount you spent last year on gifts for family and friends for the holidays? Base: All respondents (n=1,007). Source: Survey commissioned by Discover Global Network, 2024.
3. Expect a bulk-buy November
Shoppers plan to start buying gifts earlier this year, spreading out their purchases over a longer period of time. About three-quarters (74%) of consumers are at least somewhat likely to begin their holiday shopping earlier this year. 61% of shoppers will start buying gifts before the end of October, which allows for more time to hunt for deals and promotions.
Q: Compared to last year, are you likely to start your holiday shopping earlier this year? Base: All respondents (n=1,007). Source: Survey commissioned by Discover Global Network, 2024.
However, November is also a popular time to complete the bulk of holiday shopping. In fact, 56% of consumers plan to do the bulk of their holiday shopping in November and early December. Though they may purchase a few gifts early-on, shoppers are likely planning to take advantage of Black Friday and Cyber Monday deals for the majority of their gift purchases.
Q: When do you plan on starting your holiday shopping this year? Base: All respondents (n=1,007). Source: Survey commissioned by Discover Global Network, 2024. Note: Due to rounding, charts may not sum to 100%.
4. Be channel agnostic
Merchants should focus on creating a positive buying experience both online and in store. Consumers are used to switching between shopping channels in order to find the products they want throughout the year. While 60% of consumers reported shopping online frequently or very frequently, 59% also reported shopping in-store frequently or very frequently. When purchasing holiday gifts, consumers will continue to use multiple channels. In fact, most holiday shoppers (54%) plan to do an even mix of online and in-store shopping in order to find the best products and deals.
Q: Do you plan to do most of your holiday shopping online or in-person this year? Base: All respondents (n=1,007). Source: Survey commissioned by Discover Global Network, 2024.
What did consumers say is the worst part of holiday shopping? In-store shopping. Crowds and lines were mentioned by 38% of shoppers as their least favorite aspect of holiday shopping. The busyness of the season draws huge crowds as shoppers flock to find deals and complete their shopping list on time. When asked about their favorite aspect of holiday shopping, 29% of consumers mentioned gift giving. These consumers will brave the swarm of people, wait in lines/queues, weave through traffic, and overcome parking obstacles to get the best deals that help keep themselves on budget—because in the end, the effort and hassle is worth the joy of seeing smiles on their loved ones’ faces when their gifts are revealed.
Q: What is your favorite aspect about holiday shopping? Base: All respondents (n=1,007). Source: Survey commissioned by Discover Global Network, 2024.
5. Offer discounted shipping
Online marketplaces are becoming more popular than large retailers for holiday shoppers to find unique gifts at reasonable prices. While 60% of consumers plan to shop online at large retailers, 79% plan to shop online at marketplaces. When shopping online, shipping is an important component. The survey found that free shipping is more important than fast shipping, with a majority of shoppers (67%) choosing standard as their preferred method (over expedited delivery, same-day delivery, or pick-up). Same-day shipping was very or extremely important to 38% of respondents, while free shipping was very or extremely important to 65% of respondents when making purchases for the holiday season. With tight budgets, consumers want to save on shipping costs and will plan ahead to ensure their gifts arrive on time.
Q: How important is free vs. same-day shipping to you when making purchases for the holiday season? Base: All respondents (n=1,007). Source: Survey commissioned by Discover Global Network, 2024. Note: Due to rounding, charts may not sum to 100%.
6. Use social media to inspire
An emerging shopping channel, social media provides online gift-giving inspiration to a subset of shoppers this holiday season. Globally, 61% of holiday shoppers are at least “a little” influenced by social media when holiday shopping. Nearly a third of consumers (30%) plan on shopping on social media sites. While social media shopping has not yet risen to the popularity of other online channels, there is an opportunity for online sellers to influence shoppers’ purchasing behavior for the holiday season.
Q: How much does social media influence your holiday shopping? Base: All respondents (n=1,007). Source: Survey commissioned by Discover Global Network, 2024.
7. Understand the importance of rewards and promotions
Shoppers will be heavily influenced by promotions when buying gifts for the holidays. Sales, deals, and promotions will be important to draw shoppers into making their purchases, as 44% of shoppers indicated they frequently or always wait for discounts before purchasing a holiday gift. Cash back rewards seem particularly enticing for shoppers. Adult consumers reported that 72% are at least a little influenced by cash back offers on cards or person-to-person apps while shopping for the holidays. Meanwhile, 35% of global shoppers reported that they always take advantage of “cash back” rewards. Reviewing their rewards and offers may be the first place shoppers start when putting together their gift lists.
Q: How important are 'cash back' rewards offered by credit cards when completing your holiday shopping? Base: All respondents (n=1,007). Source: Survey commissioned by Discover Global Network, 2024.
8. Support card payments
Consumers will continue to pay via card. Card payments will continue to be more popular than cash and digital wallet payments when shopping for the holidays this season. It is important that merchants are able to accept and technically support card payments so that there is no issue with the consumer completing a purchase. Many holiday shoppers plan to pay for most of their holiday purchases with a credit card (46%) and 31% plan to pay with a debit card. When given a choice, a majority of shoppers claimed they would prefer to pay with a physical card rather than a mobile device. This indicates mobile device payments are gaining traction but have yet to surpass card payments in global popularity.
9. Accept consumers’ preferred payment methods
In the past year, a majority of shoppers (51%) have been in a situation in which their preferred payment method was not accepted. Payment acceptance is important for the holiday shopping season, considering that 36% of shoppers would not shop at a store that did not accept their preferred credit card. In fact, consumers find it frustrating when their preferred payment methods are unavailable. 60% of respondents considered it at least moderately upsetting when unable to purchase holiday gifts with their preferred payment method. Some may only choose to shop where they can use their top choice of card.
Draw shoppers’ attention with deals and inspiration, secure the sale with payment acceptance
It is likely that many consumers have already picked their favorite places to shop this holiday season. However, merchants have the opportunity to use social media along with promotions to draw shoppers out of familiarity and into the unknown—to find new products, sites, and stores. To win over these customers, businesses must also make it easy for consumers to buy from them with shorter in-store lines/queues, via free online shipping, and by offering familiar payment methods.
- (2024, July 16). World Economic Outlook. International Monetary Fund. World Economic Outlook Update, July 2024: The Global Economy in a Sticky Spot (imf.org), pg. 3.
- (2024, May). Chief Economists Outlook. World Economic Forum: Centre for the New Economy and Society. WEF_Chief_Economists_Outlook_May 2024.pdf (weforum.org).
ABOUT THE SURVEY
This survey of 1007 consumers across the United States, Europe, and the Asia Pacific region was commissioned by Discover and conducted by TSG (The Strawhecker Group). The goal of the study was to understand consumers’ plans for holiday shopping in 2024, what payments they prefer to use while shopping, and what pain points they experience while shopping for the holidays.
The survey, conducted between May 16th, 2024 and May 29th, 2024, included feedback from English-speaking individuals who were over the age of 18 in the following countries: United States (n = 142), Canada (n = 194), United Kingdom (n = 124), Germany (n = 44), France (n = 68), Spain (n = 55), Portugal (n = 60), India (n = 204), New Zealand (n = 114), the Philippines (n = 1), and Sweden (n= 1).
The margin of error for those surveyed in North America was +/- 5% at a 95% confidence level. The margin of error for those surveyed in Europe across the countries included was +/- 5% at a 95% confidence level. The margin of error for those surveyed in the Asia Pacific region across the countries included was +/- 5% at a 95% confidence level. An attention check was included within the survey to ensure effortful responding, as well as manual data cleaning to ensure understanding of content. Counterbalancing of response options was employed to reduce methods bias.
The information provided herein is sponsored by Discover® Global Network. It is intended for informational purposes, and is not intended as a substitute for professional advice.