The festive season 2024 is nearly here, with fireworks night over the planning and buying spree begins. This year, consumer behaviors are shaped by economic factors, evolving shopping preferences, and online influence.?
Where Are Shoppers Heading for Christmas?
The holiday season is a time of increased spending, and consumers are becoming strategic about where they shop for Christmas groceries and gifts:
- Multi-Store Shopping: A significant number of shoppers who frequent discounters visit traditional supermarkets during the holiday season. Convenience Matters: UK shoppers are prioritising convenience, so how many are opting for quick trips to local stores rather than large weekly shops. This trend is particularly relevant during the busy holiday season when time is often limited.
- Online Growth: While in-store shopping remains dominant, online grocery shopping is gaining traction. In fact, online grocery sales are projected to grow significantly this Christmas, as consumers seek the convenience of home delivery and click-and-collect options.
What's Driving Store Choice This Christmas?
Understanding what influences shoppers' decisions during the festive season is essential for retailers:
- Price Sensitivity: With ongoing inflation concerns, shoppers express frustration over rising prices. During Christmas, this leads to:
- Proximity and Convenience: Shoppers are likely to choose stores that are easily accessible during the hectic holiday season. Proximity to home or work can significantly influence their shopping decisions.
- Experience and Atmosphere: The festive shopping experience matters. Many consumers value engaging environments that enhance their holiday spirit, making in-store displays and promotions crucial.
- Personalisation: Shoppers appreciate personalized offers and recommendations. During Christmas, retailers can leverage data to provide tailored promotions based on past purchases.
- Local Products: Many consumers prefer stores that offer locally sourced products during the holiday season, aligning with their desire for freshness and community support.
Discounters vs. Multiples: The Holiday Showdown
Cross-shopping behaviour becoming more pronounced during holidays, with shoppers purchasing staples from discounters and turning to traditional supermarkets for branded goods or unique holiday offerings. Last year discounters like Aldi and Lidl had record-breaking Christmases, with more households than ever shopping with them influencer were:
- Price Advantage: Discounters like Aldi and Lidl often provide prices that are 5-25% lower than larger supermarket chains. This price gap becomes a critical factor for budget-conscious holiday shoppers.
- Quality Perception: Typically traditional supermarkets win on quality perception, especially for fresh produce and premium items that many consumers seek for holiday meals.
- Customer Overlap: Many shoppers will visit both discounters for essentials and supermarkets for specialty items or festive treats.
Cross-Shopping Behavior During the Holidays
The trend of cross-shopping between discounters and multiples becomes particularly pronounced around Christmas:
- Selective Shopping: Shoppers often purchase staples from discounters while turning to traditional supermarkets for branded goods or unique holiday offerings, such as gourmet foods or specialty ingredients.
- Promotional Hunting: The holiday season sees increased promotional activity, with 34% of shoppers relying more heavily on coupons and discounts to maximize their budgets.
The Growing Relevance of Online Grocery Shopping
Online grocery shopping is increasingly important during the festive season:
- Market Growth: Online grocery sales are expected to surge as consumers look for convenience amid their busy schedules. Retailers offering robust online options will likely see increased traffic.
- Key Players: Major retailers like Waitrose, Iceland and Amazon Fresh are capitalising on this trend by providing seamless online shopping experiences that include delivery and pickup options tailored for holiday shoppers.
- Omnichannel Experience: Retailers must ensure a cohesive experience across online and offline channels, allowing customers to easily transition between platforms while shopping for Christmas essentials.
Social Media’s Impact on Holiday Shopping
Social media platforms are playing an increasingly influential role in shaping consumer behaviors during the festive season:
- TikTok Trends: Short-form videos on TikTok are driving food trends and product discovery among younger consumers. Holiday recipes or gift ideas shared on this platform can significantly influence purchasing decisions.
- Facebook and Instagram Shopping: These platforms continue to be vital for brand awareness during the holidays. Shoppable posts allow retailers to showcase seasonal products directly to consumers, facilitating impulse purchases.
- Social Commerce Growth: While still emerging in grocery retail, social commerce is gaining traction as retailers explore live shopping events or influencer partnerships to engage customers during the holiday rush.
Strategies for Success This Christmas
Category and Brand Leaders are driving the Christmas shopping landscape in 2024, we are seeing these strategies:
- Personalised Promotions: Targeted promotions that resonate with individual shopper preferences during the holiday season.
- Enhanced In-Store Experience: Engaging shopping environments with festive displays, sampling events, and themed promotions that enhance the overall experience.
- Seamless Omnichannel Integration: Building smooth transition between online and offline shopping experiences, making it easy for customers to shop however they prefer during the busy holiday period.
- Highlight Value Offerings: Competitive pricing, quality assurance, and unique product offerings tailored for Christmas celebrations.
- Leverage Local Sourcing: Promote locally sourced products as part of your holiday offerings to appeal to consumers’ desire for freshness and community support.
- Engage Through Social Media: Dynamic social media strategy with engaging content related to holiday recipes, gift ideas, and promotions captures consumer attention.
Field Agents shoppers are feeding back sentiment around Christmas purchases in 2024 and adapting strategies accordingly, grocery retailers can position themselves effectively for success during this critical retail season.?
Contact us to suggest a question or to be on this list for a fast track copy of the results. [email protected]
