Holiday Shopping Trends and Predictions

As an ever-increasing number of shoppers head online for their purchases, retailers are creating more immersive digital spaces, some of which draw inspiration from brick-and-mortar experiences. For example, livestream shopping brought in $50 billion in 2023 and is estimated to grow by 36 percent in 2026.¹ Other experiences like how-to videos, personalized messaging and recommendations, and augmented reality (AR) features that allow you to “try on” clothes or sample makeup are among the many digital shopping methods retailers are implementing to help customers get an in-store experience at home.

For many companies, serving shoppers at a variety of channels – from websites and marketplaces to physical stores and product catalogs – is becoming the “new normal.” While many people have become accustomed to shopping from their laptops, smartphones, and tablets in the comfort of their own homes, others find a mix of online and offline shopping even more convenient. Retailers have become increasingly adept at offering hybrid alternatives like curbside pickup and click-and-collect, also known as buy online, pick up in-store (BOPIS). Some of those pickup points include “dark stores” – retail spaces that have been transformed into dedicated fulfillment centers – which brought in $15.27 billion globally in 2023 and will continue to grow.²

Still, browsing brick-and-mortar stores remains an appealing option, especially for those with cabin fever – EY data shows that 68% of shoppers buy in stores. Nevertheless, even in-store shoppers often rely on various digital channels, such as reading product reviews and comparing prices online, to help them make a purchase decision.³

Shopping on mobile devices continues to gain traction. Half of 2023’s online retail sales were made on mobile devices, adding up to $1.7 trillion in sales.⁴

Though online shopping is no longer novel, the way people discover new brands and trends is shifting. When seeking gift inspiration, more people are turning to social media apps for curated recommendations and personalized ideas. And according to one report, shoppers rely on social media to find inspiration for gifts and learn about products they are interested in.³

Buy now, pay later (BNPL) services can help consumers purchase goods today and foot the bill in the weeks or months following. McKinsey and Company noted that the use of BNPL went up from the third quarter of 2023 to the fourth quarter due to holiday shopping, especially among younger generations.⁵ These services are projected to grow in popularity by an estimated 19% in 2023.⁴ As economic conditions remain uncertain, consumers may look to BNPL services to combat rising inflation. Plus, those consumers may benefit from timely BNPL payments in a way they hadn’t before. As credit bureaus become more comfortable with tracking BNPL transactions, taking out one of these short-term loans may impact credit scores as long as payments are reported to the credit bureaus.⁶

In a survey of holiday shoppers in early November 2024, the National Retail Federation found that 58% of consumers started browsing or buying by early November.⁷