How Budget-Conscious Shoppers Are Changing Loyalty This Holiday Season

According to The National Retail Federation, the 2024 holiday season in the United States will generate between $979.5 billion and $989 billion in retail sales, which is a 2.5% to 3.5% increase from 2023.

As consumer holiday spend nears a trillion dollars, brands and retailers have been organizing and planning for the holiday season months in advance. 

Field Agent asked 1,000 shoppers about their upcoming shopping preferences for the 2024 holiday season, including planned spend, ecommerce, and influencing purchase factors.

Holiday Spending on a Tight Leash

Over a third of 2024 survey respondents shared that they’re planning on spending less for the holidays compared to last year.

With hopes of making every dollar count, consumers will prioritize essential items and be more selective in their spending choices both in-store and online. This shift in behavior points to a likely emphasis on practical gifting and value-based shopping as households seek to mitigate financial pressures.

Respondents cited inflation as the primary driver for tighter budgets. The cost of living continues to rise at a year-over-year rate of 7%—a figure that mirrors the pandemic-era highs of 2021 and 2022. Persistent inflation has left many consumers prioritizing affordability, leading to the reorganization of holiday budgets and expectations.

Interestingly, for the 17% of Americans planning to spend more this holiday season, this increase appears tied to unique factors. Among this group, 42% reported higher disposable income, while 39% attributed their increased holiday spending to the elevated cost of goods and services.

As consumers brace for a holiday season of lean budgets, their choices on where and how they shop — online or in-store — are more pivotal than ever.

Where Shoppers Are Spending (and Saving) This Season

When asked how they prefer to shop for gifts, 64% of survey respondents indicated a preference for a blend of both online and in-store experiences, while 24% favor primarily in-store shopping and 12% choose online.

For many, in-store offers the chance to see, touch, and compare products in real time. And the majority of Americans (78%) are planning on shopping more than 3 stores for their holiday items, which is a 13% increase from years past.

While physical stores give the chance for shoppers to get a tactile experience — online shopping provides flexibility, exclusive deals, and easy price comparisons. Plus, no worries about out-of-stocks or battling crowds. Most say they plan to shop at Walmart, Amazon, and Target.

This blend of in-store experience and online convenience reflects consumers' desire for choice and flexibility. With 78% planning to visit over three stores—a 13% increase from prior years—price and availability are clearly top purchase drivers this 2024 holiday season.

What’s Driving Purchase Decisions This Holiday Season

It’s been demonstrated that with less money to spend and more time in-store, shoppers are expected to be more selective than ever about their holiday purchases.

Price and promotions are the primary purchase drivers this year, while brand loyalty and recommendations from friends and family hold less influence.

With price and promotions leading purchase decisions, it's crucial for retailers to nail the in-store experience. If brand loyalty is on the chopping block, shoppers are more apt to switch brands based on a few cents or better shelf visibility. From clear signage to fully stocked displays, every element can be the deciding factor in capturing a sale as shoppers prioritize savings and convenience.

Out-of-stocks, display compliance, and planogram adherence can make or break a sale, as shoppers have less patience for inconvenience and more options than ever. 

A well-stocked and visually appealing shopping environment ensures that consumers find what they need without frustration, which helps brands and retailers capture every potential sale in a competitive holiday market.

Key 2024 Competitive Holiday Market Takeaways

1. Prioritize Price and Promotions. Ensure promotions are clear, competitive, and well-communicated. With price as a top purchase driver this season, a well-planned promotion strategy can capture budget-conscious shoppers.

1. Enhance In-Store Experiences. Eye-catching displays and well-stocked shelves are critical. Audit key areas like signage and product placement.

1. Check Your Products In-Store. Monitor your products directly to ensure on-shelf availability and display compliance. Try Shelfgram (for free!) for near real-time visibility and insights into in-store execution to make sure every display is stocked, priced, and placed correctly.

Want More Holiday Insights?

As shoppers navigate this holiday season with an eye on savings and selective brand loyalty—brands have an opportunity to capture sales by focusing on key drivers like price, availability, and the in-store experience. 

For even deeper insights into holiday shopping trends, including a closer look at the holiday décor category and on-shelf availability (OSA), download our full study for free!