While retailers typically put a significant emphasis on post-holiday sales, they didn’t resonate with shoppers after the 2023 holiday season. During the week after Christmas, year-over-year sales were down across the board, with only computer software sales seeing an increase from 2022. Department stores, cosmetics stores and clothing stores saw some of the largest declines, indicating that consumers weren’t eager to shop following the holidays. What’s behind the decline in shoppers, and what can retailers do to adjust their strategies in 2024 to bring back consumers?
Extending the Holiday Season
The holiday shopping season starts earlier and earlier every year. Some consumers use Amazon Prime Day in July to get a head start on their holiday shopping, while others start during the company’s Prime Big Deal Days in October. Other retailers have started their own “Deal Days” to compete with Amazon, essentially starting the regular holiday shopping season in October. While this can help draw in shoppers earlier in the season, the Christmas creep means that consumers are less interested in shopping post-holiday, instead preferring to spend time with family or participating in other activities. 2023 also saw retailers extending their Black Friday and Cyber Monday promotions beyond the traditional days, with some retailers promoting deals for the entirety of November and December.
To reinvigorate post-holiday spending in 2024, retailers should consider getting ahead of the next big trend, such as New Year, New You. Consumers, especially younger ones, have put a greater emphasis on health and wellness, investing in skincare, fitness, and products that advance a healthy lifestyle. Look no further than the Stanley cup craze, where consumers are buying out inventory in a quest to own their favorite color/design of the popular water container.
Retailers can play into this with promotions on health, wellness and fitness products to help consumers kick the holiday bloat. They can offer product pairings, like a new yoga mat with a foam body roller, or provide a free workout guide when a consumer buys a new pair of running shoes. Similarly, beauty brands can push items like skincare or wellness technology companies can push massage oil to help alleviate the stress put on consumers’ bodies from holiday shopping and events.
Additionally, retailers can run promotions on self-care items like spa kits and journals. The end of one year and the beginning of a new one often leads to a period of self-reflection for consumers. They’re thinking about the year that just passed and look forward to what they can accomplish in the year ahead. Social media has amplified this trend, with influencers offering steps on how to practice mindfulness or showing themselves journaling as a form of reflection. By offering discounts on self-care items, retailers can lean into these trends and help consumers who are in a wellness mindset or who are looking to relax before their work and social calendars pick back up.
Lastly, retailers can offer discounts on popular New Year’s resolution products, such as books and board games for those looking to explore new hobbies in the new year. Consumers might be scared off by some of the prices of new books, though, which have gone up significantly over the past several years, making them less likely to buy. By offering a promotional discount, consumers are more likely to stick with that new hobby and it increases the likelihood they will come back to purchase again. Book club anyone?
Discounts You Can Use
For many retailers, post-holiday sales are used to get rid of excess inventory and phase out Christmas and winter items for the next season. This benefits consumers and retailers: discounts on wrapping paper, gift boxes and decorations can stimulate purchases for early planners looking to save a few dollars for next year and clears the way for retailers to bring in spring and summer inventory sooner as they move out older inventory. To keep consumers coming in during the weeks after Christmas, retailers can go beyond sales on traditional winter items by offering discounts on items people can use after the holidays are over. For instance, they could offer promotions on batteries for new electronics items or storage equipment for holiday decorations they can use next year.
Additionally, retailers can consider different types of discounts, such as BOGOs or gift cards when a consumer makes purchases above a certain price threshold. This can help to get rid of old inventory while encouraging customers to return for future shopping visits, which can help during the leaner shopping months at the start of the year. Gift cards or BOGO items can also play into New Year’s resolutions as well by encouraging consumers to invite a friend to join them on their resolution or keep going when they might not feel like continuing with their new habits.
We know that consumers are all about deals. By offering something new or different, or playing into New Year’s resolutions, retailers have a clear path to increase their post-holiday sales.
While consumers are willing to spend post-holidays, the deals have to be enticing to get them back into stores after the presents have been opened. Retailers should offer discounts on resolution-related products and items consumers need after the holiday season, like new game controllers or charging devices. Making the post-holiday shopping season more exciting with these types of promotions can help retailers have a successful 2024 season.
Jonathan Silver is CEO and founder of Affinity Solutions, a consumer purchase data and insight solution, helping financial companies and brands analyze customer behavior for growth.
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