Last-minute holiday spending guide for retailers

TRENDS & INSIGHTS

MARKET INTELLIGENCE

Spotlight on… last-minute spending

Many consumers leave a substantial amount of their holiday season shopping until the last minute. Here are some ideas on capturing their attention and winning their business.

Share

Average reading time: 6 minutes

Executive summary

Many consumers still have holiday shopping to do in the final days before Christmas. Businesses that can make lastminute gift buying a smooth experience could be well placed to succeed.

Taking the stress out of holiday shopping could help you attract hesitant consumers at this busy time of year. Consider strategies such as offering gift inspiration, a gift wrapping service and extended returns.

Many consumers delay holiday purchases in the hope of finding a better deal, so consider if this is something you can afford to offer. Competitive prices could win budgetconscious customers this year.

One in five UK consumers leave their Christmas shopping until the last minute²

When it comes to holiday shopping, some customers will always leave their purchases until the last minute. For example, in 2021, two of the three busiest days of the year for package volume in Europe fell in the two weeks leading up to Christmas.¹

According to Google, one in five UK shoppers say they leave their shopping until the last minute.² Meanwhile, research last year in the U.S. showed that 89% of consumers still have gifts to buy by 12 December – a 25% increase on the year before³ – while on 1 December, almost two thirds had not decided on which gifts they would purchase.⁴

For businesses, that means there is still a valuable opportunity in the final weeks and days before Christmas, if you can capture the attention of consumers.

And not all purchases at this time of year are pre-planned. In fact, research has shown a significant proportion of holiday sales are impulse purchases.⁵ Creating the right conditions to encourage impulse buying – such as placing popular items in prominent places, or promoting unique and unusual products⁶ – could help boost sales at this time of year.

To capitalise on the last-minute sales rush, here are some ideas that could help:

Give shoppers Christmas gift inspiration

Spotlight on Last Minute Spending image body 1

When it comes to last-minute shopping for gifts, your customers might be in need of some ideas. Creating gift guides can be a good way to engage your customers, offering them useful suggestions while also giving you an opportunity to promote specific products to your audience.⁷

Remember that social media is a key space for consumers looking for inspiration, so it could be a good idea to publish content such as gift guides across your social channels, too.⁸

A third of purchases made in the holiday season are impulse purchases, according to US research⁵

Offer a ‘pick up in store’ option

“Buy online, pick up in store” (BOPIS) retail is a popular option in the run up to Christmas. According to one report, BOPIS orders grew 40% year on year during the holiday season and peaked on 23rd December.⁸

In addition, omnichannel retail and convenience is a growing trend among consumers all year round.⁹ With customers wary of delays during the festive season¹⁰, offering the ability to collect packages from retail locations instead of being shipped to their door could be beneficial. For businesses without a physical retail presence, consider using high street stores and similar retail locations as pick-up points for customers to collect their packages.

Spotlight on Last Minute Spending image body 2

Make life easier for customers with added extras

For 40% of customers, leaving their holiday shopping late is because they haven’t decided on the right gift. And for 35%, it’s simply because they didn’t get around to it earlier.³ With this in mind, extra services that make the experience more convenient could help sway hesitant (or simply disorganised) customers. For example, many retailers offer an extended returns period, which could give customers some extra peace of mind. Alternatively, a gift-wrapping service could be attractive for customers in a hurry to buy their presents before the holidays.⁷

Keep customers in the know about sold out products

Spotlight on Last Minute Spending image body 3

Your customers could be concerned about the products they want to purchase selling out before they have a chance to buy. According to a Google survey, 30% of consumers worry that the products they want will be out of stock.⁴ Keeping customers up-to-date with information about stock levels at this time of year could help you attract more sales. For example, if you have a high-street store, you could let customers know that you have specific items in stock to encourage footfall.⁴ Consider using email marketing channels and social media to tell customers you have stock of high-demand products. Or, if you’ve sold out of something, let customers know when you are due to get it back in stock.¹¹

Offer deals to win priceconscious consumers

Research in the US found that a key reason consumers delayed holiday purchasing in 2021 was because they were holding out for a better deal.³ And in fact, 72% or survey respondents said they would wait until after 25 December to shop in order to find a bargain.³

With consumers across Europe likely to be hit by financial concerns this winter,¹² consider whether you can make your pricing more competitive, or offer deals that add value for customers. For example, product bundles could be a good way to increase average basket value and offer customers a good deal.¹³

Spotlight on Last Minute Spending image body 4

Disclaimer: The information provided on this page does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to business and commerce. The FedEx Small Business Hub content, information, and services are not a substitute for obtaining the advice of a competent professional, for example a licensed attorney, law firm, accountant, or financial adviser.