Why Nailing the In-Store Experience Will Make All the Difference This Holiday Season

For retailers, the holiday season has already started. But as far as forecasts for this pivotal season go, there’s precious little festive cheer about so far.

Some recent industry headlines have included the suggestion that average household holiday budgets will be down 10.2% this year. This reflects the fact that consumer confidence has taken a 22% year-on-year hit as Americans adjust to continued high inflation, wage stagnation and the economic uncertainties created by tariffs, government shutdowns and all. Six in 10 US consumers feel either cautious, pessimistic or panicked about the economy.

This is already having a concrete impact on retail. Sales value fell by 1.4% year-on-year the past summer, despite footfall holding up. The takeaway from that is clear – people are still going out to shop but they’re spending less. If that pattern repeats over the coming weeks, retailers are going to find it very tough to get the peak season uplift so many rely on.

It’s not easy trying to find crumbs of optimism in such a downbeat picture. For physical retailers, one is that consumers remain engaged enough for footfall to remain stable. Another is that shoppers’ enthusiasm for bricks-and-mortar stores remains high. According to a survey by AI reputation management outfit Chatmeter, despite acknowledging the convenience of digital shopping, 9 in 10 consumers feel the online experience just doesn’t compare to going to a store.

This is something for physical retailers to hold onto as we hit peak season. It’s also worth remembering that, according to a recent SAP Emarsys survey, a quarter of Americans feel they cannot afford to be loyal to any particular businesses in the current climate. That means opportunities for increasing share of wallet for retailers that give customers what they want.

Taking the stress out of holiday shopping

So what might that be? The Chatmeter survey found that the number one reason people like to shop in store is because they feel the inventory is better. They get to see what’s available right there, and take home whatever they like there and then.

There are challenges around inventory for retailers over peak season, especially with all the promos over Black Friday weekend, Cyber Week and beyond. There’s always the chance that a hot deal will see a popular item fly off the shelves. The message is to be savvy about what you stock up on, and always have something to make the trip into your store worthwhile. It’s also important to track inventory through your POS in real time, so you can can give fair warning about stockouts etc.

This feeds into a broader consideration of how to deliver a winning shopping experience – taking the stress out of holiday shopping. Yes, consumers agree there’s something genuinely rewarding about heading to a store and getting the dopamine rush of instant inspiration and gratification in multisensory environment where they can touch, smell, taste, try on and test out goods they want to buy. It beats the comparatively two-dimensional experience of online retail hands down for many people, as the stats above show. And the festive period is a time when physical retailers can really bring that intrinsic enjoyment to life with immersive holiday-themed decor, ambient music, special in-store events etc.

But that shouldn’t disguise the fact that holiday shopping can be a stressful experience. Especially on the big peak days like Black Friday, there are lots of crowds, lots of queues, lots of adrenalin and cortisone flying around as people try desperately to grab that big bargain or finish off their gift buying.

Empty shelves or missing out on a hot deal they specifically came for adds to that stress. That’s why careful inventory management and good communication is so important at this time of year. But there’s more to it than that. Retailers can ease the worst impact of the crowds and queues by adding extra POS and/or self-checkout points over the peak period. A great option for this is using mobile POS tablets. That way staff across your shop floor can be ready not just to serve and assist, but to close sales anywhere.

Overall, the experience stores should be aiming for is one that prioritizes enablement – helping to ensure customers can get what they want, as easily and efficiently as they want. That’s what will send shoppers home with the warmest of festive feelings and encourage loyalty at a time when loyalty is in decline.