We are in the fourth quarter of the year, and it’s time to prepare for the holiday shopping season. Traditionally, Black Friday marks the start of holiday shopping.
If you’re a retailer or in the hospitality industry, it’s important to understand how shopping habits may differ this year. Here are some key predictions:
- Shoppers will prioritize value, watching closely for discounts and sales.
- Functional gifts will take precedence over novelty or luxury items.
- Gift cards will remain a popular choice.
- Many consumers will “trade down” by choosing store brands, smaller quantities, and discount retailers.
- Buy Now, Pay Later options will see increased use as shoppers spread purchases over a longer timeframe. In fact, July retail sales rose 5.8% as some began holiday shopping early.
- Higher-income shoppers will focus on experiential gifts such as travel, dining, and leisure activities.
- About one-third of shoppers will make a deliberate effort to shop local, seeking handmade or locally sourced items.
How to Prepare for Holiday Shopping
To make the most of this season, small business owners should start planning now. Here are practical steps to get ready:
- Stock early. Have your shelves ready by mid-October with items that make good gifts but aren’t holiday-themed yet. Electronics, jewelry, toys, and personal care items are excellent early options.
- Order ahead. Place orders for high-demand, nonperishable holiday items that can be stored until late fall.
- Plan your layout. Feature promoted products in high-traffic areas.
- Offer variety. Provide similar products in different sizes and price points to appeal to every budget.
- Reward loyal customers. Use loyalty programs to offer exclusive deals and consider hosting early shopping events for members.
- Leverage AI and data. Analyze shopping habits to personalize promotions and product recommendations.
- Prepare your marketing. Develop holiday campaigns now that celebrate Thanksgiving, Christmas, Hanukkah, and other seasonal events.
- Schedule your big events. Decide which items to highlight for Black Friday, Small Business Saturday, and Cyber Monday, and create marketing materials for each.
- Train early. Begin hiring and training now so your team is ready for the holiday rush with great customer service and clear knowledge of store policies.
- Optimize your website. Make sure your online store is user-friendly and easy to navigate.
- Showcase range. Advertise gifts at various price points to emphasize affordability and choice.
- Take care of yourself. Rest and recharge before the busy season begins—you’ll need your energy and enthusiasm!
The countdown to Christmas and other fall holidays has begun. Preparing now will help your season run more smoothly, delight your customers, and boost your year-end sales.
Susan's Reflections 