UK consumers to prioritise holiday spending in 2024, says Coveo

The latest research from Coveo reveals a growing inclination among UK consumers to boost their holiday spending for the 2024 season, even if it means cutting back on other expenses.

The 2024 Holiday Shopper Report, based on a survey conducted in July 2024 with 4,000 adults from the United States and the United Kingdom, highlights some key trends and sentiments as the holiday season approaches. According to the survey, 76% of shoppers plan to maintain or increase their holiday gift giving and spending compared to last year. Concurrently, 59% indicated a willingness to reduce their expenditures on dining out, socialising, travel, and entertainment to accommodate their increased holiday budgets.

Lisa Grayston, General Manager of Commerce at Coveo, pointed to the enthusiasm among shoppers as a promising sign for retailers. "Shoppers are going into the holiday shopping season ready to be inspired, which opens doors for retailers to lean on their technological prowess to convince and convert. Retailers willing to pioneer and experiment with AI-led strategies for delivering exceptional product discovery experiences and the most relevant offers on-the-fly are poised to thrive this holiday season and into 2025," she said.

The report indicates a strong potential for retailers to leverage AI to enhance shopping experiences and boost sales. A significant 90% of respondents claimed they would be inclined to add items to an existing online order if tempted by free shipping, special offers, or personalised recommendations. Additionally, 85% admitted to making impulse purchases online, particularly in fashion, shoes and apparel categories.

Businesses are advised to focus on AI-driven strategies to enhance their engagement with consumers. Specific site search categories like "gifts for dad" or "gifts under £50" were found to be useful by 61% of shoppers, indicating that targeted search options could improve online shopping experiences.

One area of note is the burgeoning role of generative AI in holiday shopping. Almost a third of the survey respondents (28% in the UK and 35% in the US) expressed an interest in using a GenAI-powered virtual assistant for online gift buying. This figure rises to 44% among Millennials, indicating a generational trend towards adopting AI-driven solutions for more efficient shopping.

Black Friday and Cyber Week remain crucial periods for consumers, with 68% planning to visit retailers during these peak shopping days. The focus during these sales events will primarily be on electronics, fashion, and department store categories. This trend is indicative of consumers' persistent pursuit of deals and discounts during prominent shopping seasons.

Another trend identified is the anticipated increase in digital grocery shopping during the holiday season. More than half (55%) of consumers plan to shop for groceries online for holiday meals and parties, with 20% noting this as an increase from their usual online grocery habits. The trend is even more pronounced among younger shoppers, with 68% of Millennials and 69% of Gen Z respondents favouring online grocery shopping.

The report also shows that digital discovery of special offers is prevalent, with 80% of consumers finding deals through digital sources such as email, social media, and online marketplaces. This indicates a shift from traditional methods like print coupons, with only 13% of UK respondents and 27% of US respondents still using this method to find deals.

Overall, 39% of UK shoppers and 45% of their US counterparts enjoy the challenge of finding the perfect gift, though 19% find it burdensome due to the costs and time involved. These sentiments highlight the varying attitudes towards holiday shopping and the potential benefits of AI-driven solutions to alleviate common consumer concerns.