This holiday season presents a unique set of challenges for retailers as shoppers face financial strain and shifting priorities. Consumers are increasingly relying on credit, with 37% using credit cards more and 32% turning to “buy now, pay later” options. Despite this, online order volumes have decreased, and shoppers are buying less, seeking out discounts, and favoring private labels.
Predictions for this season include a surge in the use of Chinese shopping apps, which are anticipated to capture $160 billion in global ecommerce market share. Middle-mile shipping costs are rising, adding pressure to margins, and online sales are set to peak on Black Friday, which is expected to see significant digital traffic. Retailers should prepare for a spike in online activity and use AI to enhance the shopping experience.
Additionally, loyalty programs will play a crucial role as customer acquisition costs rise. With 46% of shoppers prioritizing loyalty benefits, retailers should leverage customer data to offer personalized perks and exclusive deals. Adapting to these trends will be key for driving sales and maintaining customer engagement.
