Holiday Shopping Trends 2024

2024 Canadian Holiday Shopping Habits: Navigating the New Normal

The 2024 holiday shopping season promises to be unlike any we've seen before, influenced by a mix of economic pressures, technological advancements, and shifting consumer preferences. Let’s dive into the trends shaping holiday shopping habits in Canada this year and how retailers and brands can adapt to meet these new challenges.

1. Inflation's Impact on Consumer Behavior

   The most significant trend this holiday season is the impact of inflation on consumer spending. Despite financial pressures, Canadians are determined to make the most of the festive season.

   • Managing Budgets: 90% of Canadians are carefully managing their budgets and actively seeking out deals.
   • Spending Adjustments: 71% are adapting their shopping habits due to inflation, focusing on sales, budgeting, and earlier planning.
   • Trading Down: 78% of Canadians are opting for cheaper alternatives to their usual purchases.

   Retailers must understand that consumers are more value-driven than ever, and they need to offer compelling deals and promotions to capture their attention. Brands should consider creating cost-effective bundles and leveraging strategic price points to attract budget-conscious consumers.

2. The Rise of Black Friday and Cyber Week

   Black Friday and Cyber Week continue to be critical periods for holiday shopping. This year, Black Friday falls on November 29, creating a shorter, more intense shopping period.

   • Strategic Shopping: 42% of consumers believe Black Friday offers the best deals of the season.
   • Timing Matters: 69% of Canadian shoppers plan to wait for Cyber Week before making significant purchases.
   • Planned Spending: Consumers plan to spend about 22% of their holiday budget on Black Friday.

   Retailers should gear up for these peak periods by optimizing their marketing and promotional strategies to attract value-seeking shoppers. Brands need to collaborate closely with retailers to ensure optimal placement and visibility during these critical shopping days.

3. Digital Shopping Dominates

   Digital and online shopping are continuing to grow, with more consumers turning to online platforms for their holiday purchases.

   • Online Spending: Expected to account for 43% of holiday budgets, up from previous years.
   • Convenience and Deals: 55% of consumers prefer to do most of their holiday shopping in-store, but online shopping remains strong due to value and convenience.
   • Emerging Platforms: One in three consumers have shopped on platforms like Temu, Shein, and Alibaba in the past three months.

   To stay competitive, brands must enhance their online presence and provide seamless shopping experiences across digital channels to stay competitive.

4. The Role of AI and Personalization

   Artificial intelligence is becoming a game-changer in the holiday shopping experience, offering personalized product recommendations and dynamic pricing.

   • Influencing Purchases: AI-powered personalization is expected to influence 16% of all online orders during the holiday season.
   • Tailored Experiences: Consumers are starting to embrace AI, appreciating how it can enhance their shopping journeys.

   Retailers and brands need to leverage AI to deliver more personalized shopping experiences, building stronger connections with consumers.

5. The Power of Loyalty Programs

   Loyalty programs are more important than ever in shaping consumer behaviour; especially in an uncertain economy.

   • Consolidating Purchases: 66% of Canadian consumers are consolidating their purchases around retailers that offer loyalty programs.
   • Maximizing Value: Loyalty programs allow consumers to maximize value, making them especially appealing in today's economic climate.

   By aligning with retailers’ loyalty programs, brands can foster brand loyalty and drive repeat purchases during the holiday season.

Conclusion

The 2024 holiday shopping season presents a unique blend of challenges and opportunities for retailers. By understanding and adapting to these common trends—ranging from inflation-driven value-seeking behaviors to the growing importance of digital shopping and AI-powered personalization—retailers and brands can position themselves for success. At LPi Group, we are committed to helping our clients navigate this dynamic landscape and create meaningful engagement with their customers during this festive season and beyond.

Data Sources: Deloitte 2024 Holiday Retail Outlook, Retail Insider 2024 Holiday Retail Trends in Canada, Retail Council of Canada “Canadians to Spend More This Holiday.