Consumer Digest: Holiday Insights September 2024

2024 Holiday Outlook

Earlier this year, the National Retail Federation (NRF) predicted a 3.8% to 4.2% increase in 2024 holiday sales and plan to release an updated forecast in late October. Meanwhile, other sources are predicting nearly half of NRF’s original growth. Salesforce forecasts a 2% year-over-year increase in holiday sales.

To get a preview of the next few months, we asked Kroger households about their preparations and attitudes for the holiday season October through December.

96% of respondents plan to celebrate one or more upcoming holidays:

• Halloween: 65%

• Thanksgiving: 89%

• Christmas: 91%

• New Years Eve/Day: 69%

Shopper priorities: What are shoppers looking for while holiday shopping?

• Sales/deals/coupons available: 71%

• Availability of items: 70%

• ‘One-stop-shop’: 34%

• Personalized shopping experiences (e.g., promos, rewards, support): 26%

• Online ordering for delivery or pickup: 22%

• Extended store hours: 19%

Vibe check: Top two responses around holiday spending show budget concerns (T2B):

• My household is concerned about our budget when we think about holiday spending this year: 44%

• My household plans to shop at stores that offer the steepest discounts during the holiday season: 43%

Anticipated holiday spending…91% of shoppers will spend the same or less compared to last year:

• Spend more: 10%

• Spend same: 54%

• Spend less: 37%

Although shoppers are looking for ways to save, many will continue splurging on gifts and food:

• Gifts: 44%

• Food: 43%

• Travel: 18%

• Clothing: 17%

• Holiday entertainment: 16%

• Decorations/décor: 14%

• Holiday parties: 12%

• None of the above: 25%

Shoppers plan to do more low-cost activities and cut back on higher cost activities.

More:

• Gather with friends/family: 31%

• Watch holiday movies: 29%

• Prepare for gatherings: 18%

• Buy groceries: 18%

• Decorate my house: 17%

Less:

• Go out to restaurants: 52%

• Spend money on entertainment: 39%

• Travel: 31%

• Consume alcohol: 28%

• Donate to charities: 27%

Where will shoppers search for holiday deals?

• Digital coupons: 75%

• Weekly ads/circulars (paper or digital): 65%

• Retailer’s website: 60%

• Retailer app: 52%

• Cashback apps/sites (e.g., Rakuten, Ibotta, etc.): 36%

• Personalized paper coupons: 34%

• By word of mouth: 27%

• Manufacture’s website: 25%

% of shoppers who plan to let technology do some of the holiday planning:

• For gift ideas: 21%

• For new recipes: 21%

• To make a grocery list: 20%

• Discover new holiday traditions: 10%

• To learn about holiday meaning/history: 9%

• Plan a holiday trip: 9%

Top triggers to start holiday shopping:

• Specific sales (Labor Day, Black Friday, etc.): 56%

• Seeing holiday decorations/décor in-store: 31%

• Family and friends starting their shopping: 30%

When do Kroger shoppers typically start planning for the fall/winter holidays?

• Halloween: 47% plan 2 weeks – 1 month ahead

• Thanksgiving: 59% plan 2 week – 1 month ahead

• December Holidays: 63% plan 1-3 months ahead

Holiday Sales Event Spotlight: Black Friday and Cyber Month, the two biggest events appeal to all generations, though with a skew to younger shoppers.

2024 Halloween Spotlight

Shoppers are sticking to the tried-and-true Halloween traditions and will make seasonal purchases to celebrate.

How shoppers are celebrating Halloween:

• Decorating my house: 53%

• Carving a pumpkin: 48%

• Staying home & handing out candy: 43%

• Stocking up on candy to give out: 36%

• Stocking up on candy for myself/family: 36%

• Going trick or treating in our neighborhood: 33%

• Going to a trick or treating event: 27%

• Going to a Halloween party: 26%

• Going trick or treating in someone else's neighborhood: 23%

In-store shopping is favored for Halloween purchases

Where shoppers are planning to shop for Halloween:

Decorations:

• Physical Mass Retailer: 43%

• Physical Grocery Store: 33%

• Will not be purchasing this year: 26%

Candy:

• Physical Grocery Store: 62%

• Physical Mass Retailer: 43%

• Club Store: 23%

Costumes:

• Will not be purchasing this year: 37%

• Physical Mass Retailer: 25%

• Online Mass Retailer: 19%

Say vs. Do: Halloween day is biggest for candy sales!

Shoppers are looking for deals and savings on candy, decorations and costumes. % of shoppers looking to cut back on Halloween supplies:

• Candy: 37%

• Decorations: 36%

• Costumes: 30%

• Food for gathering: 22%

• Beverages for gathering: 22%

• I do not plan to cut back on any Halloween supplies: 28%

2024 U.S Presidential Election Engagement and Outlook

To what extent are shoppers keeping up with the Election? (T2B, M3B, B2B on 7-point scale)

• Extremely engaged: 34%

• Moderately engaged: 57%

• Extremely unengaged: 9%

Financial procrastination related to 2024 Election

The top 3 things shoppers are holding off doing until after the Election:

• Holding off on buying a big-ticket item: 18%

• Holding off on investment decisions: 15%

• Holding off on purchasing a car: 13%

• Are not holding off on doing anything until after the election: 53%

% of shoppers holding off on purchase decisions by age:

• Shoppers 18-34: 62%

• Shoppers 35-54: 44%

• Shoppers 55-74: 42%

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Source: 84.51° Real Time Insights Survey, September 2024.