In a landscape where grocery prices remain high, a new report from Circana sheds light on how Thanksgiving traditions are still thriving among consumers. As families prepare to gather around their dinner tables, the significance of homemade meals takes center stage. According to Circana’s annual “Thanksgiving Outlook,” 2024 promises to maintain the cherished customs of this iconic holiday, despite ongoing inflation.
Understanding the Buying Behavior
The report identifies pivotal trends that outline consumer behavior in the lead-up to Thanksgiving. Remarkably, 79% of consumers plan to celebrate the holiday in a traditional manner. Yes, economic pressures have increased—most notably, the prices of Thanksgiving staples saw a modest inflation of 2%. However, this slight increase pales in comparison to the staggering 26% rise in grocery prices since 2020. Such conditions highlight the resilience of tradition among shoppers faced with financial strains.
Key findings from the report include:
– Planning Ahead: The week before and the week of Thanksgiving are crucial for retailers. Early deal-seeking behavior has emerged, particularly among families with young children, as 38% of respondents indicated they would take advantage of deals before the holiday.
– Spending and Cooking: One-third (34%) of consumers expect to spend more on groceries this year, yet they show no signs of scaling back on their overall purchasing. A significant 61% intend to prepare their main Thanksgiving meal at home, representing a marginal decrease from previous years. This trend opens avenues for retailers to promote creative gift options that support home cooking and hosting.
– Gathering Sizes: The average number of attendees at Thanksgiving meals has risen to 10.6 for younger generations, including Gen Z and young Millennials. This increase reflects shifting social dynamics, where larger gatherings are preferred, unlike older generations who favor smaller, more intimate family settings.
Retail Strategies for Success
Joan Driggs, VP of Content and Thought Leadership at Circana, emphasized that Thanksgiving presents a tremendous opportunity for retailers and manufacturers. “By focusing on solutions that blend convenience, value, and creativity, businesses can help shoppers celebrate in meaningful ways—whether through promotions on staple items or offerings that simplify hosting and gifting.” This advice is crucial for retailers aiming to engage their consumers effectively.
Retailers can capitalize on this opportunity by implementing several strategies:
1. Promotions and Discounts: With 50% of Thanksgiving basket items sold on promotion, offering attractive discounts and bundles can significantly influence consumer decisions.
2. Diverse Product Offerings: As 8% of Thanksgiving meals included items sourced from restaurants or food-service establishments, retailers should consider collaboration opportunities with local restaurants for ready-made dishes or easy meal solutions.
3. Engagement Through Content: Providing valuable content through recipes, cooking tips, or holiday guides can encourage shoppers to visit stores and engage with their brands.
4. Enhanced Shopping Experiences: Creating in-store experiences that resonate with the emotions of Thanksgiving—such as cooking demonstrations or sampling stations for holiday meal components—can deepen customer connections and encourage loyalty during this crucial shopping period.
Projected Trends for 2024
Circana forecasts that several trends seen in 2023 will continue into the next year:
– A substantial 82% of total sales growth will take place in the week prior to Thanksgiving, emphasizing the need for retailers to bolster inventory during this time.
– The Thanksgiving basket, encompassing 31 essential categories, drove sales increases while only accounting for 9% of total sales, indicating significant shopper interest in targeted categories.
– Although promotional sales percentages increased drastically, the average discount remained consistent with the previous year, suggesting that shoppers are becoming more selective about their purchases.
Conclusion
As Thanksgiving approaches, understanding consumer behavior and trends can offer significant advantages to retailers. Shoppers’ desire to connect with holiday traditions presents opportunities for businesses to enhance customer experiences and drive sales. Addressing the dynamics of high grocery prices while promoting the value of traditional home-cooked meals can lead to a successful festive season.
With consumers prioritizing meaningful gatherings and lasting traditions over financial constraints, the Thanksgiving holiday remains a pivotal moment for retail strategies to shine.