Coveo’s latest holiday shopping report reveals insights into consumer behavior for the upcoming season, showcasing a strong potential for retailers to capitalize on artificial intelligence (AI) to drive sales. The research, based on a survey of 4,000 adults in the U.S. and U.K., highlights key trends from Black Friday to the December holidays, revealing a robust shopping season ahead.
Consumers Plan to Prioritize Gifting Budgets
According to Coveo’s 2024 report, titled “Gift or Grinch? Unwrapping This Season’s Shopper Spending Plans”, 59% of respondents plan to cut back on everyday purchases to focus on holiday gifting. The survey also shows that over three-quarters of consumers (76%) intend to maintain or increase their spending on gifts compared to last year. This optimism provides retailers with an opportunity to capture more spending, especially as holiday-specific shopping peaks approach.
Impulse Buying is On the Rise
One of the standout findings of the report is the significant role of impulse purchases during the holiday season. An impressive 85% of respondents admitted they are prone to making unplanned purchases, particularly in the fashion and apparel categories. Even more striking, 90% of consumers said they could be persuaded to add additional items to their online orders. This presents a key opportunity for retailers to use AI tools to enhance product recommendations and increase cart values in real-time.
Black Friday and Cyber Monday Remain Essential
The report also underscores the importance of Black Friday and Cyber Week for consumers. With 68% of shoppers planning to visit retailers during this time, electronics, fashion, and big box stores are expected to be the top categories driving traffic. While consumers have access to deals year-round, these traditional shopping events remain critical touchpoints for many retailers looking to maximize sales.
Online Grocery Shopping Gains Momentum
Beyond gifts, grocery shopping is also poised for a digital boost this season. Over half of consumers (55%) indicated they plan to purchase groceries online or through delivery apps for holiday meals, a notable increase from previous years. Younger generations, particularly Millennials and Gen Z, are leading this shift, with nearly 70% opting for the convenience of digital grocery shopping.
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Digital Offers Dominate Holiday Shopping
In an era where digital communication prevails, it’s no surprise that 80% of respondents said they discover holiday deals through online channels such as social media, email, and search engines. This trend is even stronger in the U.K., where more consumers rely on digital advertising than in-store signage or traditional print mailings.
AI as a Holiday Shopping Guide
Interestingly, nearly one-third (31%) of shoppers expressed interest in using generative AI (GenAI) tools for gift recommendations, with the figure rising to 44% among Millennials. As retailers continue to adopt AI-powered shopping experiences, this emerging trend signals the growing influence of AI in shaping consumer decisions during the holidays.
Looking Ahead: AI’s Role in Retail Success
As we move into the heart of the holiday shopping season, the findings from Coveo’s report suggest that AI-powered retail strategies will be key to success. From personalized product recommendations to real-time offers, retailers have a unique opportunity to meet consumers’ evolving expectations and boost their bottom lines.
By embracing AI at every point of the shopping journey, businesses can not only enhance customer satisfaction but also position themselves for long-term growth into 2025 and beyond.
