The latest research from Coveo shows a notable trend among UK consumers gearing up for the 2024 holiday season, with many planning to increase their spending, even if it means cutting back in other areas. This shift presents exciting opportunities for retailers and digital marketers to capitalize on the growing enthusiasm of holiday shoppers.
According to the 2024 Holiday Shopper Report, which surveyed 4,000 adults in the UK and the US, 76% of shoppers intend to either maintain or increase their holiday gift spending compared to last year. This positive sentiment is further emphasized by the fact that 59% of respondents are willing to trim budgets for dining, travel, and entertainment in order to allocate more funds for holiday gifts. Such findings signal a resilient consumer mindset, highlighting that the desire to give can outweigh concerns about overall spending.
Lisa Grayston, General Manager of Commerce at Coveo, emphasizes the potential for retailers. “Shoppers are going into the holiday shopping season ready to be inspired,” she states, underscoring the significant opportunity for brands to engage with consumers effectively. Retailers can leverage technology, and particularly AI, to enhance shopping experiences and maximize sales conversion.
The report suggests that AI can play a pivotal role in streamlining the shopping journey. A whopping 90% of surveyed respondents noted that they would be likely to add more items to their orders if incentivized by free shipping, special offers, or personalized recommendations. This finding is critical for e-commerce businesses aiming to capitalize on impulse buying, a behavior prevalent especially among traditional gift categories such as fashion and accessories.
Moreover, 85% of respondents admitted to making impulse purchases online, making it imperative for brands to utilize certain strategies to trigger these spontaneous buying decisions. Enabling targeted navigations, such as searches for “gifts for dad” or “gifts under £50,” could significantly improve consumer satisfaction, as 61% indicated that they found these specific site categories useful. This mix of AI-driven personalized recommendations and targeted search suggestions can significantly enhance the overall shopping experience.
The integration of generative AI into retail strategies is another emerging trend for the holiday season. Findings reveal that nearly one-third of consumers in the UK (28%) express interest in utilizing GenAI-powered virtual assistants for gift-buying, a figure that jumps to 44% among Millennials. This trend indicates a broader generational shift toward technology adoption for a more seamless shopping experience, which retailers could leverage in their marketing approaches.
Significant shopping days like Black Friday and Cyber Week also highlight the importance of strategic retail planning. A substantial 68% of consumers plan to make the most of these sales events, particularly focused on categories such as electronics, fashion, and department store items. Retailers can optimize their promotions around these key dates to stimulate consumer interest and drive conversions.
The surge in demand for digital grocery shopping during the holiday season is another noteworthy trend. More than half (55%) of consumers plan to shop online for groceries for their holiday meals, with this figure rising to 68% for Millennials and 69% for Gen Z. Retailers in the grocery sector should prioritize e-commerce platforms and optimize their digital inventories to cater to this increasing demand.
Additionally, the research shows that consumers are increasingly relying on digital platforms for discovering deals, with 80% reporting that they find offers through online sources such as email, social media, and marketplaces. This shift signifies a moving away from traditional methods like print coupons, which are still used by only 13% of UK respondents. Retailers should invest in a robust online marketing strategy to effectively reach their target audience, utilizing social media and email campaigns to showcase exclusive offers and promotions.
While many consumers enjoy the process of finding the perfect holiday gift—39% of UK shoppers and 45% of their US counterparts—there remains a noticeable burden associated with the costs and time involved in holiday shopping. By implementing AI-driven solutions, retailers can help alleviate these concerns and enhance the shopping experience, ultimately leading to higher satisfaction rates.
As we approach the 2024 holiday season, it is clear that UK consumers are ready to spend more, even if it means making sacrifices in other areas. Retailers who adopt innovative technologies like AI to improve the shopping experience, provide personalized recommendations, and promote effectively during key shopping phases are likely to thrive in this competitive landscape.
