Deck the halls with retail surprises

By Terena Chetty, 1Africa Consulting Head of Strategy. Retailers need to bring in all the (jingle) bells and whistles to attract customers this festive season. The end of the year is peak shopping season globally – come rain, shine or snow, shoppers will be out and about (and online) from November’s Black Friday until the start of the new year.

The shopping frenzy heightens around mid-December as it marks the official start of the holidays for many. And of course, we can’t forget the panic-buying dash at Christmas Eve to get last-minute gifts. With virtually every shop (both physical and online) promoting festive season buying, how do retailers stand out from the rest and increase sales?

Here are some tactics that brands can use to attract consumers over the festive season:

• Jolly Good Customer Experience: It all starts with the basics – excellent customer experience. Retailers need to bring in all the (jingle) bells and whistles to attract customers. Everything from offering comprehensive and easy-to-navigate gift catalogues (both in-store and online), to sufficient stock levels and efficient delivery processes that are the envy of Santa himself. Many people leave festive shopping for too late, so quick delivery times would certainly give one retailer a major competitive edge over another. A 2023 survey revealed that faster delivery was the top aspect that shoppers would change globally regarding online shopping, followed by free returns policies (Statista). Offers such as discounts, 3 for 2 offers (pay for two but get three items), free gifts, complimentary gift-wrapping, free shipping and other promotional perks are also key to maximising sales this festive season.
• The Feel-good Factor: Brands can ignite the holiday spirit in many ways, from feel-good holiday advertising to adorning stores with festive decorations (and of course, the ever-present Mariah Carey Christmas album). In fact, 38% of shoppers cite store displays as the inspiration for their gift purchases. As cliché as it may sound, these tactics work because people enjoy the escapism and emotion that comes with all things Christmas. According to advisory consultancy TNS’s global database of retail and shopper studies, there is a clear correlation between a shopper’s satisfaction and how much they spend (Kantar). So whether it’s cold outside or not, creating a winter wonderland or abundance of festive cheer is sure to bring joy to both customers and the retailer.
• Pine-ing For Personalisation: Personalised products and services offer that special touch to make a gift more memorable. It allows consumers to go the extra mile to create something special. This includes individual gifts that can be personalised and delivered directly to the recipient, as well as retailers that offer a customised gifting experience (e.g., “build-your-own” gift baskets). This helps customers make it a December to remember for loved ones, with good tidings to the brand that made it all possible. From a business perspective, a recent report by Research & Markets estimates the global personalised gift industry will reach 47.6 billion dollars by 2030, equating to a Compound Annual Growth Rate (CAGR) of 5.8%.
• “Sleighing it” with gifts-on-the-go: Not all consumers enjoy endless hours of shopping looking for the right gift – many people prefer pre-packed gifts and gift sets that they can grab off the shelf, particularly those with festive or attractive gift packaging. From festively boxed chocolates to perfume gift sets to beauty product hampers, stores well-stocked with gift sets prominent placed for easy access will do well over the festive shopping period, particularly the closer it gets to Christmas.
• Edible Gifts & The Spirit(s) of Christmas: The festive season is all about food and drink. Recent estimates indicate that people will spend over a third of their festive season budgets on food and beverages. Over and above Christmas lunches and festive dinner feasts, food and beverages are a major part of gifting. This includes premium alcoholic drinks, the cant’-go-wrong bottle of wine, and yummy festive treats. Grocery and convenience stores should stock ample quantities of holiday-themed chocolates, biscuits, puddings and so forth. These should be strategically placed close to shopping tills where customers can quickly grab an item to add to their festive trolleys.
• Magical User-generated AI Content: When it comes to marketing, this year we see a sleigh-full of ad campaigns powered by user-generated, brand-centric AI content. For example, the Coca Cola “Create Real Magic” campaign allows users to input a prompt and create a magical Christmas themed image – with Cola Cola branding prominent, of course. It’s a fun way to get users to engage with the brand, as well as promote the brand when they merrily show off their artwork online.

For retailers, the festive season can be the most wonderful time of the year to attract and retain customers by exceeding expectations and providing excellent customer experiences. After a long year, every extra bit of convenience and moment of joy is sure to be appreciated by customers. Here’s to a merry and magical festive season that gives both brands and the economy a much-needed boost.

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