By: Joshua Finley

This holiday season, many Americans are approaching gift shopping with caution and strategy, reflecting the challenges of a year marked by inflation and economic uncertainty. According to Theatro’s 2024 Holiday Shopping Report, Shoppers are focusing on saving money and paying closer attention to in-store safety and service.

A survey of U.S. consumers aged 18 and older suggests changing priorities that may influence the retail landscape during an important shopping period.

Delayed Decisions Amid Tight Budgets

Many shoppers adjust their purchase timing, with some waiting for end-of-season deals or additional income, such as holiday bonuses or cash gifts, to manage their budgets. Others would modify their shopping timelines to benefit from loyalty rewards and discounts.

Retailers providing these incentives may appeal to budget-conscious shoppers. Over 60 percent of respondents noted a preference for stores with loyalty programs, highlighting the role rewards can play in influencing shopping choices.

In-Person Shopping Rebounds, with Caveats

While online shopping remains a dominant force, brick-and-mortar stores are expected to see an uptick in traffic. About 26 percent of shoppers indicated they might visit physical stores more often this year, citing reasons such as experiencing products firsthand, enjoying the festive atmosphere, and the convenience of in-person returns.

Yet this return to in-person shopping comes with heightened expectations. Long lines and understaffed stores are among the frustrations for consumers. Nearly 30 percent of respondents mentioned they might not complete their purchases if wait times are too long, and 22 percent noted they might avoid stores with insufficient staffing.

These findings pressure retailers to optimize operations during a season already strained by labor shortages.

Safety Concerns Loom Large

Safety remains an important consideration for many shoppers, with a significant number expressing concerns about in-store security. Many are looking to retailers to address these concerns, including through potential investments in technology to enhance safety, reflecting broader discussions about retail security. And recent legislative efforts in states like New York.

“Retailers have an incredible opportunity this holiday season to build trust and loyalty by meeting the evolving expectations of shoppers with incentives, policies, and technology that prioritizes the customer experience while also keeping them safe,” explained Chris Todd, Theatro’s CEO.

Technology’s Mixed Reception

As retailers integrate technology to enhance efficiency, many shoppers remain wary of its impact on their in-store experience. Malfunctioning self-checkout machines, distracted employees using store devices, and inadequate training on store technology led to the list of consumer grievances.

However, when deployed thoughtfully, technology can still play a pivotal role. Nearly half of respondents—48 percent—indicated an interest in AI tools that could simplify shopping, such as managing crowd levels or providing personalized discounts. Meanwhile, 35 percent noted a preference for human-centered customer service, suggesting an interest in balancing technological advancements with traditional retail experiences.

A Strategic Moment for Retailers

The findings present challenges and opportunities for retailers during the most lucrative time of year. By focusing on loyalty incentives, addressing safety concerns, and improving operational efficiency, stores can navigate consumer demands while creating memorable shopping experiences.

“The holidays are a time for joy, but shoppers deliver a clear message,” said Todd. “Safety and service are non-negotiable while shopping for gifts in 2024.”

As the holiday season approaches, retailers face an opportunity to redefine the shopping experience to resonate with consumers’ heightened expectations. By addressing concerns around safety, service, and value, businesses can create a holiday environment that meets practical needs and rekindles the joy and connection at the heart of the season.

Published by Mark V.