As the holiday season draws near, online shopping continues to lead as the preferred method for consumers, with 83% of holiday shoppers planning to make purchases online this year, according to Circana’s latest Holiday Purchase Intentions report.
While in-store shopping is expected to increase, a vast majority of consumers, 77%, are set to prioritize online retailers for their holiday purchases. In fact, a growing number of shoppers—approximately 74%—plan to adopt an omnichannel approach, combining both online and in-store experiences. This trend marks a slight increase from last year, while 16% of shoppers are committed to exclusively shopping in physical stores.
Marshal Cohen, chief retail advisor for Circana, commented on this shift in consumer behavior, noting, “Convenience and value are driving a dynamic balance between e-commerce and brick-and-mortar retail this holiday season. Shoppers are increasingly using all available channels to maximize their budgets and enhance their shopping experiences.”
Online-only retailers are particularly popular, with 77% of consumers naming them as their main destination for holiday shopping. Notably, 42% of shoppers plan to buy gifts online with direct shipping to friends and family, a significant rise from the previous year.
As shoppers hunt for value, traditional in-store sales events like Black Friday are also migrating online. According to Circana’s sales tracking, Black Friday has consistently been the top shopping day in November for both in-store and online purchases over the past two years.
Additionally, Circana’s recent report revealed that consumers are preparing to spend an average of $771 on holiday shopping, a modest 2% increase from last year but still 2% lower than 2021 spending levels.
With the holiday season fast approaching, Cohen emphasized that retailers must adjust to consumers’ evolving shopping habits. “A seamless cross-channel experience will be essential for retailers operating in both online and in-store spaces. Those who don’t adapt risk falling behind and losing out on growth opportunities during this peak shopping period.”
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