Top Holiday Retail Trends to Watch in 2024

he holiday season is one of the busiest and most profitable times of the year. As the retail industry continues to evolve, staying ahead of the holiday trends is essential for retailers looking to make the most of the holiday rush. From early sales to engaging online experiences, the 2024 holiday season is setting up to be one of the most lucrative yet. 

Here’s a look at the top retail trends to watch this holiday season. 

One of the most noticeable trends in recent years has been the shift towards early holiday shopping. Customers are starting their holiday purchases well before Black Friday and Cyber Monday, with many retailers launching sales as early as October. This trend is partly driven by concerns over product availability, delivery delays, and a desire to avoid last-minute stress. Early shopping can also provide budget-conscious customers with big savings on their holiday shopping list.

Retailers have responded by launching holiday promotions and sales events in October. Amazon is gearing up for its Amazon Prime Big Deal Days Oct. 8-9. Prime members will get exclusive access to early holiday deals. Target is launching the return of Target Circle Week Oct. 6-12, featuring seven days of deals with discounts up to 50% off on select items. Likewise, Walmart is getting a jump on the holidays with its first-ever Walmart Holiday Deals event slated for Oct. 8-13. Shoppers can save on a range of products across several categories.

This holiday season, online shopping will rise to new heights as consumers continue to take advantage of the convenience and discounts that it provides. Eighty-six percent of holiday shoppers plan to do some online shopping for gifts this year, according to SmartCommerce’s 2024 Holiday Gatherings and Shopping Report. Most consumers plan to shop both in-store and online, while 30% will order all their gifts online to be delivered. Shoppers are gravitating towards mass retailers offering appealing promotions like free shipping and discounts.

U.S. consumers are expected to spend a record $240.8 billion online this holiday shopping season, up from $221.8 billion in the 2023 holiday shopping season, according to Adobe forecasts. Cyber Week (the five-day period including Thanksgiving, Black Friday and Cyber Monday) is expected to drive $40.6 billion in online spend, up 7% year-over-year and representing 16.9% of the overall holiday season. Adobe expects Cyber Monday will remain the season’s and year’s biggest shopping day, driving a record $13.2 billion in sales.

Flexible payment options, such as buy now, pay later (BNPL) services, have gained popularity among holiday shoppers. Buy now, pay later options allow shoppers to spread out their payments over time without incurring interest. This trend is expected to continue growing during the holiday season, especially as consumers look for ways to manage their budgets while still enjoying the holidays. Offering payment options like BNPL can help reduce cart abandonment and increase sales.

Buy now, pay later is expected to set new records this season, driving $18.5 billion in online spending, up 11.4% year-over-year. Adobe expects BNPL online spending to hit $9.5 billion during the month of November 2024, making it the largest month on record. Cyber Monday is expected to be BNPL’s largest day on record at $993 million. The most common reasons cited by consumers for using BNPL include freeing-up cash and the ability to purchase something they couldn’t afford otherwise, according to Adobe.

Mobile commerce is continuing to grow, with more consumers using their smartphones to browse, compare prices, and make purchases. Holiday shopping on mobile devices is expected to hit a new milestone, contributing a record $128.1 billion and growing 12.8% year-over-year, according to Adobe. Consumers are spending more time on their mobile phones as well as scrolling through social media, creating more opportunities for retailers to engage with customers and increase sales during the holiday season.

Social media platforms like Instagram, Facebook, and TikTok are becoming increasingly popular channels for holiday shopping. Social commerce is expected to gain even more traction this year. Shoppers can discover, browse, and buy products directly through these platforms. By allowing the selling of products and services directly on their platforms, businesses and customers can now interact directly. 

Timely and reliable delivery remains a critical aspect of holiday shopping satisfaction. Flexible delivery options, including same-day delivery, scheduled deliveries, and secure pickup points, are becoming more prevalent to accommodate the busy schedules of holiday shoppers. Supply chain disruptions, from geopolitical tensions to extreme weather, have been a recurring issue. Offering a variety of fulfillment services, from same-day delivery to curbside pickup, can minimize potential challenges and ensure customers get all the gifts they need in time for the holidays. 

The holiday season is a critical time for retailers, and staying ahead of the latest trends can make all the difference in engaging with customers and maximizing sales. By embracing these trends, retailers can position themselves for success and create positive holiday shopping experiences for their customers.

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