As the holiday season approaches, consumer shopping behaviors are shifting noticeably. According to JLL’s 2024 Holiday Shopping Report, mall shoppers are poised to see an impressive 18.7% increase this year, while open-air shoppers are projected to rise by 10%. This trend signifies a major change in how consumers are approaching their holiday shopping, focusing not just on acquiring products but also on experiencing moments that enhance their festivities.
The findings of the report, based on a survey of over 1,000 consumers conducted in August, paint a vivid picture of the evolving retail landscape. One of the most striking developments is the 31.7% increase in holiday budgets compared to last year. This surge suggests that consumers are ready to invest more in their shopping experiences, which include everything from dining out to engaging with holiday entertainment.
Kristin Mueller, president of retail property management at JLL, noted, “Our survey indicates that consumers will flock to physical stores this holiday season, with malls emerging as the top brick-and-mortar destination. In fact, we’re forecasting an 18% uptick in mall visits where shoppers can experience the full breadth of holiday spirit.” This strong inclination towards physical shopping spaces is fueled by a desire for authentic interactions and memorable experiences, which online shopping simply cannot replicate.
Experience Over Products
What exactly are consumers prioritizing? According to reports, spending on food and décor has skyrocketed by 61%, while budgets for holiday entertainment and experiences have surged by 56.4% year-over-year. These trends indicate that shoppers are moving their expenditures away from mere material gifts and more towards enjoyable experiences that create lasting memories.
As the survey suggests, over 40% of consumers have already started their holiday preparations early this year. Interestingly, a significant chunk of shoppers—86%—will commence their shopping by the weekend after Thanksgiving, eagerly awaiting Black Friday deals. This dual approach combines early savviness with the allure of obtaining bargains, showcasing consumers’ changing strategies to optimize their spending.
This year, electronics and accessories are gaining traction as preferred gift items, with clothing also remaining high on the list. Remarkably, 83% of holiday shoppers plan to buy something for themselves, up from 76.2% in 2023. The desire for self-indulgence reflects a growing awareness among consumers of their personal preferences and needs.
The Shift Towards Social Media Influence
In an increasingly digital marketplace, social media platforms are playing a pivotal role in shaping consumer choices. Over eight in ten respondents indicated that they will utilize social media—such as Facebook, Instagram, and TikTok—for their holiday shopping decisions. Notably, TikTok’s e-commerce platform has nearly doubled in popularity compared to last year, pointing to a critical intersection of social media and retail.
This shift highlights the importance for brands to maintain a robust presence across social media channels. Marketers should harness the potential of influencer partnerships and targeted advertisements that resonate with their audiences. As consumers are actively seeking product recommendations and shopping inspiration online, brands can capitalize on this trend by strategically leveraging social proof and user-generated content.
A New Holiday Budget Landscape
The average holiday spending per shopper has reached an impressive $1,261, covering gifts, holiday food, décor, and experiences. This increase caters not only to material goods but also emphasizes experiential purchases, illustrating a consumer mindset that prizes enjoyment and fulfillment over mere acquisitions. Naveen Jaggi, president of retail advisory services, Americas at JLL, underlined this shift: “We’re not only seeing a shift in the amount that shoppers are spending but also what they spend their budgets on, including a focus less on giving and more on living.”
As retailers prepare for the holiday rush, understanding this evolved consumer behavior is essential. It is evident that consumers are not just turning to physical retail environments—they are flocking there for the multifaceted experiences that include shopping, dining, and entertainment.
Adapting Retail Strategies
For retailers, this dynamic presents significant opportunities. Those that can enhance the shopping experience through creative storefronts, engaging events, and excellent customer service will likely be the ones to thrive. Engaging physical spaces that invite customers to linger and socialize can encourage higher spending and foster brand loyalty. Integrating technology—like mobile apps and in-store tablets—can also create seamless shopping experiences that cater to tech-savvy consumers.
The resurgence of mall shopping illustrates a crucial revival of community interaction during the holiday season. As retailers gear up to meet these exciting new trends, crafting a shopping journey that prioritizes experiences while also delivering high-quality products will be key.
In conclusion, the 2024 holiday shopping landscape shows a clear consumer preference for experiences over products, calling for retailers to adapt their strategies accordingly. With innovative offerings and a focus on customer satisfaction, businesses can position themselves to maximize their impact during this vibrant season.