Atlanta, [Date] – The year-end holiday shopping season has traditionally been a golden period for retailers, but this year's trends show significant shifts in consumer behavior and retail strategies. Manhattan Associates today released its "2024 Supply Chain Confidence Survey," highlighting how both consumers and retailers are adapting to persistent inflationary pressures during this crucial retail period.
Conducted in September 2023, the survey gathered insights from 250 retail executives, 250 supply chain and logistics managers, and 500 consumers. The findings reveal increased price sensitivity among shoppers, retailers' investments in efficiency-boosting technologies, and a growing preference for early holiday shopping planning.
Changing Consumer Behavior: Value Focus and Flexible Fulfillment
The survey identified several key trends shaping this year's holiday shopping season:
- Price sensitivity dominates: 85% of consumers cite inflation and rising prices as primary concerns, leading to more deliberate purchasing decisions focused on value.
- Early shopping gains traction: 40% of consumers plan to start holiday shopping earlier to avoid potential delivery delays and extra shipping costs, with 65% prioritizing free shipping options.
- Delivery preferences evolve: 46% anticipate minimal delivery delays, while 34% expect some disruptions, prompting more consumers to choose cost-effective over expedited shipping.
- BOPIS popularity grows: Buy Online, Pick Up In-Store (BOPIS) options gain favor as consumers seek to avoid shipping fees and control pickup timing.
- Sustainable shipping choices emerge: More shoppers are selecting "green" or "no-rush" delivery options that offer discounts in exchange for slower fulfillment.
- Budget-conscious gifting: 52.2% plan to rely heavily on promotions, while 57% intend to purchase less expensive gifts to maximize their budgets.
Retailer Strategies: Inventory Optimization and Promotional Focus
Retailers are implementing several key tactics to address these behavioral shifts:
- Inventory optimization: 92% of retailers express confidence in their order fulfillment capabilities, with 87% of supply chain leaders preparing for potential disruptions.
- Data-driven approaches: 87.2% of retail leaders are focusing on high-demand products, while 82.4% are preparing for last-minute order surges using advanced forecasting.
- Promotional emphasis: Retailers are increasing discounts and value-focused pricing strategies to attract budget-conscious shoppers.
- Technology investments: 61% of supply chain executives are implementing new technologies to improve efficiency and reduce holiday season costs.
- Flexible fulfillment options: Retailers are expanding delivery choices including free shipping, BOPIS, and curbside pickup.
- Supplier collaboration: Strengthened partnerships with suppliers aim to enhance supply chain stability through advanced planning and shared forecasting.
Unique Seasonal Challenges: Compressed Shopping Window
This year's holiday season presents an additional challenge with only 27 days between Thanksgiving and Christmas, compared to 32 days in 2022. To adapt:
39.6% of consumers plan to spread purchases across multiple weeks to avoid last-minute pressure, while retailers like Walmart have responded by launching holiday promotions earlier in the fall.
Executive Perspective
Ann Ruckstuhl, Chief Marketing Officer at Manhattan Associates, noted: "This holiday season presents both challenges and opportunities. Consumers are more value-focused than ever, requiring retailers to balance competitive pricing with operational efficiency. Our data shows retailers are moving beyond bulk inventory approaches to more agile, technology-driven strategies that maintain optimal stock levels."
She added: "While inflation has moderated recently, value consciousness persists. Retailers are addressing this through targeted promotions and pricing strategies that maintain sales volume while respecting consumers' price sensitivity."
Industry Outlook
The report suggests several long-term implications for retail:
- Value-focused shopping will likely persist beyond the current inflationary period
- Early holiday shopping may become standard practice
- E-commerce growth will continue, requiring enhanced digital platforms
- BOPIS and flexible fulfillment options will gain further adoption
- Sustainability considerations will increasingly influence purchasing decisions
As retailers navigate these changes, the report emphasizes the importance of data-driven inventory management, supply chain resilience, and customer-centric fulfillment options to succeed in this evolving holiday shopping landscape.