As the holiday season quickly approaches, PowerReviews conducted its annual survey to dive deep into the shopping behaviors and preferences that will define the 2024 holiday season. With responses from a diverse group of over 11,000 consumers, the survey reveals notable shifts in how people are preparing, budgeting, and shopping this year. Here’s a look at what to expect from holiday shoppers in 2024.
Big Budgets Planned for Many Shoppers
When asked about their overall holiday spending (both online and in-store), the majority of respondents revealed they have significant budgets planned. While only 5% expect to spend less than $250, a much larger share, 28%, plan to spend up to $2,000, and 21% have allocated between $2,001 and $5,000 for their holiday activities, gifts, meals and events. Millennials and Gen X are leading the pack when it comes to higher spending, with the bulk planning to spend between $1,001 and $2,000.
Holiday Planning is Starting Early
Most consumers have already begun their holiday shopping. October is the most popular month for shoppers to kick off their holiday plans, with 36% stating they started their planning during this time. Notably, 25% of consumers said they are starting earlier this year compared to last, with Gen Z leading the charge—34% of this generation reported getting a head start on holiday shopping.
However, despite this early start, most consumers still feel that September is too early to see Christmas items in stores or online. Sixty percent of respondents said showcasing holiday merchandise before mid-September is too soon, but this figure drops significantly by October, which could explain why many retailers have been promoting holiday spending as soon as the Halloween season ended.
Online Shopping Continues to Surge
Unsurprisingly, online shopping is set to dominate this year. Nearly half (48%) of respondents said they plan to spend more online this holiday season compared to last year, with Gen Z being the most likely to ramp up their online spending. A significant 67% of Gen Z shoppers said they expect to shop more online this year.
Amazon continues to reign as the top online shopping destination across all generations, with 93% of respondents planning to use the platform. Many also plan to visit brand-specific websites (67%) and retailers selling products from multiple brands (60%), with Walmart and Target tying at 54%. Consumers continue to diversify their spending across various outlets, with 79% indicating their shopping would occur at three or more different destinations.
In-Store Shopping Is Losing Ground
While online shopping is growing, in-store shopping is taking a backseat. Over a third of respondents (36%) plan to reduce their in-store shopping this year. Gen Z shoppers, interestingly, are most likely to increase their in-store shopping (29%).
What Influences Holiday Shopping Decisions?
When it comes to deciding what to buy, price remains the most important factor, influencing 80% of respondents. Ratings and reviews are also crucial, with 75% of shoppers saying they rely on reviews from other customers when making holiday gift decisions. Younger shoppers, particularly Gen Z, place even more weight on ratings and reviews, with 86% saying they influence their purchases. Brand familiarity, shipping costs, and recommendations from friends and family also play a significant role in shaping holiday shopping decisions.
The same trends apply to shoppers buying gifts for themselves. Price (77%) and reviews (70%) remain the top two factors for those indulging in a little self-gifting this season.
Looking Ahead
The 2024 holiday season is shaping up to be driven by early planning, increased online shopping, and an emphasis on ratings and reviews. PowerReviews plays a key role in helping brands and retailers stand out in this competitive landscape, offering the tools to make reviews and customer feedback a central part of the shopping journey. As consumers increasingly rely on reviews to guide their purchasing decisions, having trustworthy and transparent ratings is essential for brands looking to succeed this holiday season.
About Our Sample: A Snapshot of Who’s Shopping
The survey captured input from a broad demographic spectrum of over 11,000 agents from the US, UK and Canada. Millennials made up the majority of respondents, accounting for 56% of participants, followed by Gen X at 27%, and Gen Z at 10%. The survey participants are predominantly female, with 88% of respondents identifying as women. As for household income, responses were spread across a range of income brackets, with 36% earning between $50,000 and $99,999 annually.
