This holiday shopping season is turning out to be a nail-biter for many retailers — and with good reason. In a consumer survey conducted by First Insight early this month, researchers said, “More shoppers are delaying their holiday purchases, with a 44 percent increase in those planning to start shopping right after Thanksgiving on Black Friday, Cyber Monday, and even in the weeks and days leading up to Christmas.”
First Insight said the late start reveals a shift in consumer behavior. Shoppers are waiting for better deals or are aligning their purchases with more immediate needs, “creating compressed demand windows for retailers to navigate.”
First Insight polled 1,560 consumers in the U.S. between Nov. 6 and 8.
The report’s authors said the recent U.S. presidential election “seems to have ushered in a period of cautious spending for some consumers, with one-third of shoppers planning to reduce their holiday budgets.”
Other key findings included a strong consumer desire to shop in a physical store. “Shoppers are returning to brick-and-mortar stores in significant numbers this holiday amid a notable cutback in post-election seasonal spending,” the report’s authors said, adding that the survey showed a 53 percent increase in consumers “who plan to shop only in-stores compared to last year, while intentions to shop only online have dropped 21 percent.” Of those polled, 48 percent said they plan to visit both physical and digital stores.
First Insight said this shift underscores the “evolving dynamics of consumer behavior and highlights key areas for retailers to adapt in order to drive revenue and customer satisfaction.”
“This year’s holiday season highlights a return to the essentials — competitive pricing and convenience,” said Greg Petro, chief executive officer of First Insight. “Our insights reveal not only a strong preference for in-store shopping and the growing importance of loyalty programs but also suggests a willingness to invest in premium services like faster shipping. Retailers who adapt to these shifts by providing exceptional experiences and meaningful value will emerge as leaders during the critical yearend shopping season.”
The poll also showed a decline in quality and value in fueling holiday conversions. “Only 35 percent of consumers cited it as a factor in 2024, compared to 50 percent in 2022 — a 30 percent drop,” the report noted. “This shift highlights evolving priorities as shoppers reassess what draws them to physical stores during the holiday season.”
The data showed the growing importance of loyalty programs. Of those surveyed, there was a 64 percent rise in shoppers influenced by the benefits of loyalty programs. “This presents a valuable opportunity for retailers to leverage customer retention strategies and foster long-term loyalty well beyond the holiday season,” the report stated.
“These findings provide valuable insights for retailers navigating the complexities of the holiday season,” Petro said. “Retailers who successfully adapt to these evolving preferences — offering seamless omnichannel experiences, value-driven loyalty programs, and meeting demands for convenience — will win this holiday season.”
