As consumers already start to prepare for holiday shopping season, new Salesforce research suggests that retailers might be in for a challenge, as 43% of consumers are carrying more debt than they were last year.
The Salesforce Shopping Index highlights that shoppers are particularly price-conscious in the build up to the Golden Shopping Quarter. Two-thirds of global shoppers report that prices will dictate where they choose to shop in 2024, up from 46% of shoppers in 2020.
Salesforce also predict a 2% year-over-year increase in overall sales in November and December. 40% of shoppers say they plan to buy less this year, due to the price hike.
“This season will be competitive, intense, and no doubt focused on pricing and discounting strategies,” says Caila Schwartz, director of strategy and consumer insights at Salesforce.
“It’s never been more important to leverage technology like AI and rely on your customer data for guidance and insight into marketing campaigns – especially the holiday promotional calendar – that keep your loyal customers buying more and buying from you.”
The research also suggests that nearly a quarter (21%) of purchases in this season will be made on low-cost online retailers such as Temu, Shein, and AliExpress.
The shopping app to watch most closely this holiday is TikTok, as there’s been a 24% increase in shoppers making a purchase through the app since April 2024.
This new data overall begins to paint a picture of how this year’s shopping season will look. From here, retailers can begin to prepare and pay attention to how they will adjust their strategies with consumer behaviours and forecasted trends.