Blue Yonder has published findings from its 2024 Consumer Holiday Survey which explores how consumer spending habits are being reshaped by global economic challenges and sustainable shopping options. These shifts are driving retailers to reinvent their traditional holiday strategies to meet customers’ evolving preferences for gifts and décor.
In October 2024, Blue Yonder asked more than 4,000 consumers across the U.S., UK, France and Germany to share their perspectives on traditional holiday purchases like gifts and décor. The findings below explore how consumer spending habits and behaviours are shifting under the pressure of inflation across different regions and generations.
Shoppers prepare to spend big this holiday season, with Gen Z leading the charge
While inflation is still a significant concern for most consumers, it likely is influencing spending habits as 44 per cent of overall respondents plan to spend slightly or significantly more this holiday season compared to 2023. Leading this trend is Gen Z, with 62 per cent planning to spend more, followed by 57 per cent of Millennials, 35 per cent of Gen X, and 26 per cent of Baby Boomers.
Wayne Snyder – VP Retail Industry Strategy, EMEA, Blue Yonder, explains: “Throughout the year, economic pressures have continued to influence consumer spending habits. However, with many of today’s cost-conscious shoppers loosening their purse strings this holiday season, this presents a unique opportunity for retailers to align with shifting consumer preferences. Whether it’s tapping into consumers’ growing demand for sustainability, or appealing to the top-spending Gen Z’s, retailers that address these trends head-on are likely to see success.”
Consumers prefer eCommerce platforms and superstores this holiday season
Across generations and regions, a significant number of consumers are not only assessing their holiday shopping budgets, but also their preferred shopping locations.
The popularity of online shopping — driven by fast shipping, online-only items and convenience — will see 60 per cent of overall respondents choose eCommerce platforms for holiday gift shopping this year. Millennials (64 per cent) are the most likely to shop on eCommerce sites this holiday season, followed by Baby Boomers (62 per cent), Gen X (60 per cent) and Gen Z (51 per cent).
Superstores are a close second for shopping options, with 56 per cent of overall respondents planning to take advantage of the one-stop-shop experience to purchase everything from toys to groceries. The option is most popular within the U.S., with 75 per cent of American consumers planning to visit a superstore during their holiday shopping. These retailers also remain a popular option for European respondents, including 59 per cent of the UK, 56 per cent of France and 36 per cent of Germany.
Other popular shopping options for overall respondents include department stores and brand retailers (38 per cent) and discount stores (34 per cent).
Shipping costs remain the top concern for consumers
As consumers fill their online shopping carts, type in their recipients’ mailing addresses and check them twice, they’ll be keeping a close eye on the shipping price and timeline. Nearly half (48 per cent) of overall respondents cited paying for shipping as their top holiday shopping concern, and 42 per cent are worried about uncertain delivery times and shipping delays.
But consumers are also worried about being able to purchase gifts in the first place. Nearly half of respondents in all regions cited limited product availability (43 per cent) and crowded stores (42 per cent) among their holiday shopping concerns.
A significant portion of overall respondents (41 per cent) are also concerned about missing sales and paying full price for their items. Gen Z is the most (44 per cent) concerned with missing sales and paying full price for items, closely followed by Millennials (43 per cent), Gen X (39 per cent) and Baby Boomers (37 per cent). This sentiment isn’t unique to one region — 44 per cent of U.S., 43 per cent of German and 38 per cent of UK and French consumers all share this concern.
Blue Yonder’s Wayne Snyder added: “With shoppers most concerned about uncertain delivery times, delays, and limited product availability, order fulfilment should be top of mind for retailers looking to generate maximum profit. Real-time inventory visibility that enables retailers to see exactly what inventory is available, and where, is essential to optimise fulfilment, reduce stockouts and meet customer expectations. Retailers can also reduce order delays by optimising their picking, packing and shopping operations to deal with demand. By understanding shoppers’ expectations and leveraging the right technology to ensure these are fulfilled, retailers can boost shopper conversion rates and sales this holiday season.”
Consumers prioritise sustainable options for holiday décor
Product quality and overall sustainability are key focuses for consumers, with almost half (48 per cent) of all respondents planning to shop sustainably by purchasing holiday décor that can be reused for several years. French and German consumers are the most likely (95 per cent and 94 per cent, respectively) to prioritize sustainability when buying holiday décor, compared to U.S. (86 per cent) and UK (86 per cent) consumers.
Many Gen Z (41 per cent) and Millennial (36 per cent) consumers will limit their use of decorations that consume more energy or produce waste in an effort to promote a more sustainable lifestyle as compared to Gen X (29 per cent) and Baby Boomers (25 per cent).
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