Christmas shoppers focus on quality rather than deals

Holiday Shopping Trends: Quality Over Discounts

As the holiday season progresses, consumers are shifting their focus from discounts to quality gifts, despite a slowdown in total spending growth. According to Adobe Analytics, U.S. consumers have spent $187.3 billion online between November 1 and December 12, representing a 6.1% increase from the same period last year. Although the growth rate is expected to slow down later in December, total holiday season e-commerce spend is still projected to reach $253 billion, a 5.3% increase from last year.

E-commerce sales typically experience a sharp decline from December 16 to 18 and then decrease rapidly until Christmas Eve, which is usually the slowest shopping day of the season. However, shopping activity tends to pick up again on December 27. For shoppers who are willing to order online in the back half of the season, quality is becoming a more significant factor than discounts. Captify, which analyzes over 1 billion search events daily, has observed substantial search growth for apparel and athleisure brands like Alo Yoga, Warby Parker, and Quince.

Shift to Thoughtful Gifting

The rise in searches for these brands suggests that consumers are seeking thoughtful, quality-driven gifts. RetailNext, which tracks in-store shopping, has also noticed that consumers are valuing quality over quantity, even if it means buying fewer items. This trend is expected to peak in the days leading up to Christmas. Additionally, there is evidence of a shift towards gifting experiences and subscriptions, which offer a “deadline-proof” gift option. Examples include growth in interest for Roblox Robux, Cameo Kids, and Disney+ subscriptions.

While discounts are still available, they are generally lower than during Cyber Week. Adobe Analytics reports that toys will see the biggest promotions, with peak discounts of 15% off list price in December. Furniture, bedding, and televisions will also see discounts of up to 10% off. However, for those seeking physical gifts, stores are becoming increasingly important in the days leading up to Christmas.

The Importance of Stores

The last Saturday before Christmas, often referred to as “Super Saturday,” is typically one of the top store shopping days of the year. Although Christmas falls on a Thursday this year, which may affect store traffic on Super Saturday, RetailNext expects some of the highest conversion rates of the season to occur in the final days before Christmas. Warmer temperatures and dry conditions are also expected to boost store traffic this weekend.

Buy online, pick up in-store (BOPIS) options are becoming increasingly popular in the final stretch of the holiday shopping season. Adobe Analytics predicts that BOPIS will peak on December 22 and 23, with 32% to 37% of e-commerce orders utilizing the service. Retailers like Kohl’s and Bath & Body Works have seen significant increases in pickup orders, with many customers adding additional items to their purchases while in-store. This not only benefits consumers but also helps retailers reduce fulfillment costs.