How Retailers Can Leverage Learnings From Back-to-School to Take Advantage of the New Holiday Mood

By Sam Jarvis, CEO and Founder, HubBox

Retailers can get more out of the upcoming holiday shopping season by exploiting consumer demand around discount days, a key trend which emerged in back-to-school 2024 spending, with success dependent on faster and convenient fulfillment.

As the holiday shopping season approaches, retailers are preparing for one of the most critical periods of the year. With U.S. consumer behavior shaped by economic pressures, the upcoming months present both opportunities and challenges. Looking at recent trends from the back-to-school shopping season, there are useful insights that can help retailers plan for the peak holiday spending rush.

Inflation is still a major concern for consumers, which means they are taking spending cautiously. This year, the back-to-school season highlighted how U.S. shoppers are now increasingly prioritizing discounts and deals, a trend that is likely to extend into the holiday season. According to our latest research, 65% of consumers only purchased back-to-school items if they were discounted, and many delayed purchases to take advantage of major discount days like Amazon’s Prime Day in July.

This emphasis on promotions suggests that retailers need to plan for an extended holiday shopping season, similar to the back-to-school period, which stretched from Prime Day in July to Labor Day in September. Retailers should be prepared for consumers who are increasingly savvy about where and when they spend, often holding out for the best deals.

The prolonged shopping periods have significant implications for retailers, particularly concerning their delivery and fulfillment operations. With 63% of back-to-school purchases being last-minute orders, there is a growing demand for rapid fulfillment; 84% of shoppers are prioritizing timely delivery, underscoring the need for retailers to offer not just fast, but also reliable and convenient shipping options.

As we head into the holiday season, this pressure will only intensify. Retailers must ensure that their logistics networks can handle the increased volume over a longer period, avoiding bottlenecks that could lead to delayed deliveries and dissatisfied customers. Offering flexible delivery options, such as local pickup points, can be a key differentiator, with our data showing that more than half of consumers prefer the convenience of picking up online orders at a location and time that suits them, such as a local store or UPS Access Point.

In a time where convenience often trumps price, providing flexible delivery options can enhance customer satisfaction and loyalty. For instance, local pickup solutions can meet the demand for speed as well as addressing concerns about the environmental impact of home deliveries. Retailers can leverage these solutions to reduce cart abandonment, increase conversion rates and ultimately boost their average order value.

Additionally, reliable and on-time delivery is crucial. Late deliveries can significantly harm customer loyalty – our research found that a quarter (25%) of consumers would return items if they were delivered late. This puts the pressure on retailers to prioritize accurate and efficient delivery, especially during peak shopping periods like back-to-school and the holidays.

The shift in consumer behavior toward discount-driven and convenience-focused shopping is likely to persist beyond the back-to-school. Retailers should anticipate similar patterns during the holiday season, with consumers planning their purchases around major sales events such as Black Friday and Cyber Monday. To stay competitive, retailers will need to offer promotions that resonate with budget-conscious shoppers while ensuring that their logistics operations can meet the demand for fast, flexible, and reliable delivery.

To effectively navigate the upcoming holiday season, retailers should focus on several key strategies:

• Plan for extended promotions - Anticipate a longer shopping season, starting earlier and ending later than in previous years. Develop promotional strategies that target key discounting days and extend the buying period.
  
  
• Enhance fulfillment capabilities - Invest in logistics solutions that can handle increased order volumes and ensure timely delivery. Consider offering flexible delivery options, such as local pickup points, to meet consumer demand for convenience.
  
  
• Focus on customer experience - Provide a seamless shopping experience across all channels. Integrate online and offline operations to offer convenience and flexibility and ensure that your customer service can handle any issues that arise during peak periods.
  
  
• Monitor consumer trends - Stay attuned to shifts in consumer behavior and adjust your strategies accordingly. Use data from the back-to-school season and other key shopping events to inform your approach to the holiday season.

By implementing these strategies, retailers can not only survive but thrive during the holiday shopping season, turning challenges into opportunities for growth. As the retail trends remain unpredictable, retailers that adapt quickly to consumer needs and expectations will emerge as leaders in the competitive holiday market.