With one less shopping weekend, presidential election ripple effects, and consumer behaviors that can turn on a dime, retailers’ levels of agility and responsiveness will be put to the test as they head into peak holiday shopping season.

This year, there are three consumer trends they should pay close attention to.

1. Spend expected to rise, however price and value still matters

The first signals positive news for retailers as U.S. shoppers expect to spend more this year than last. Accenture’s Annual Holiday Shopping Survey found they plan to spend an average of $613 this season, up 4% from $591 in 2023.

While this will undoubtably come as welcome news, it should be treated with cautious optimism, as deal seeking shoppers continue to be on the lookout for promotions, incentives and savings. Accenture’s survey found that almost seven in 10 (68%) consumers rated price and value among the most important factors in deciding what retailer to buy from, and 30% said they will shop as and when they are offered promotions or discounts.

Although stand-alone sales events such as Black Friday and Cyber Monday still play a role in boosting sales, retailers will need to strike a careful balance not to risk a race to the bottom on price. Instead, they should focus efforts on putting in place a dynamic sales and marketing plan that is anchored around existing inventory and can be adapted as demand fluctuates.

2. Unused gift cards, a missed opportunity for retailers?

One way retailers can boost sales and engage new customers is to tap into the gift card market that Statista estimates is worth $200 billion in the United States last year.

A staple part of the holiday gifting experience, four in 10 consumers are planning to buy gift cards this year and almost three quarters are doing so because it’s an easy and safe option when drawing a blank on what to buy someone. However, it can be seen as lacking the personal touch by those on the receiving side.

A third of consumers told Accenture they were disappointed that the person hadn’t put time and effort into planning a personalized gift. A similar number felt weary thinking about the time and effort they would need to put into using the gift card.

Perhaps then, it’s not surprising that despite being a popular choice among holiday shoppers, half of the recipients surveyed by Accenture said they failed to redeem the full balance of the card, resulting in an unspent balance of USD$120, on average, per consumer.

While gift cards provide instant revenue to retailers, there’s a broader opportunity to turn gift card holders into loyal customers. That means embedding creativity and interactivity into the experience, evolving gift cards from being a last resort solution, into a thoughtful and personal gift that shoppers are excited to give, and recipients are excited to use.

It also means making the process of purchasing, using and managing gift cards much easier to do. For instance, recipients told Accenture that simplifying balance check options (36%), regular reminders of unspent balances (35%) and an easier redemption process online and in-store (32%) would help ensure they use their gift cards.

There’s also an opportunity to generate long-term loyalty through tailoring suggestions and incentives to encourage the gift card recipient to engage and return. The Starbucks’ digital eGift Card, for example, allows shoppers to customize images and messages according to recipient’s preferences. They can easily then redeem and keep track of spend in-store or via the Starbucks app and even order ahead for extra convenience.

3. Beware of buyers’ block

Gift cards is only one of the many options shoppers can choose from when buying a gift for a loved one, there are countless others. In fact, the third trend highlights that too many options could lead to consumers walking away from making a decision or purchase at all.

Accenture’s survey found a large group of consumers (68%) could face ‘Buyers’ Block’ – the effect of feeling overwhelmed by number of options to choose from. The result? The majority (82%) say they will abandon their shopping carts due to frustration or indecision, and nearly one in three (33%) will shop elsewhere.

With more than eight in 10 (81%) of shoppers wishing they could make decisions on what to buy more quickly, easily and confidently, and almost three quarters (73%) saying they would welcome inspiration, retailers can differentiate and drive revenue through inspiring and guiding consumers at each stage of their shopping journey.

Innovative retailers should empower store associates to display their expertise – as “inspiration champions” to help inspire and advise shoppers. This will come as welcome news to the 40% of consumers who appreciate personal customer support.

Inspiration also comes from being able to browse for ideas. Almost half of holiday shoppers – rising to 53% of Gen X consumers (aged 44-59 years) – say they prefer to visit physical stores to see and assess products first hand. This is where retailers with physical stores could stand to gain through applying creativity to store layout, maximizing the sales for each square foot of their allocated selling space. For example, a dedicated area for gift wrapping or personalization services.

Then there’s the challenge of where and how consumers experience a retailer. Everything from the adverts and digital marketing they receive, to the online and in-store experiences, to the customer service they encounter along the way. These are all factors that can make or break the season.

This is where gen AI can add a touch of sparkle to this year’s holiday shopping experience. The vast majority (93%) of consumers agree gen AI could help them find better gifts, while 89% value the recommendations that gen AI tools provide. Just consider how this transformational technology can act as a personal shopping advisor – a “guide by the side” of purchasing decisions – with human-like response abilities suggesting gift ideas, or advice on wrapping.

Just look at Etsy’s Gift Mode™. This interactive, AI-powered hub helps shoppers find unique, personalized gifts by matching them with items tailored to over 200 recipient personas. Through blending machine learning technology with human curation, Etsy simplifies decision-making and offers creative options to shoppers.

Retailers must show up

One final point to consider. With so much choice over what to buy, where to buy and when to buy, retailers will need to work that much harder to stand out from the crowd. They will need to harness the power of their brand so that it acts as a magnet to draw customers to shop with them over their competitors. And they will need to deliver inspiration and exceptional customer service to ensure happy customers. That will go a long way to building and sustaining customer loyalty far beyond the peak season.