Theatro 2024 Holiday Shopping Report

78% of Holiday Shoppers Concerned about Store Safety This Year, New Theatro Survey Shows

Despite safety concerns, one in four shoppers say they plan to shop more in-person for holiday gifts–but with higher expectations, lower patience, and delayed purchases as economic pressures and tech annoyances loom large.

Purpose of this Study

2024 has been a tough year for many. Maybe you’re feeling the effects of inflation in the economy, or perhaps you’re feeling extra stressed from your job. The political temperature is rising in an election year, and uncertainty seems to be everywhere as we try to balance competing priorities in an increasingly complex world.

The holidays bring a welcome escape from the stresses of daily life as we embrace the festive spirit of the season and reconnect with loved ones through gifts and quality time. The experience of shopping for gifts can be a joy as well–a chance to step into a picture-perfect holiday wonderland of sparkles, garland, and twinkling lights that make even the most ordinary errand feel magical as you leave behind the challenges of the past year, if only for a little while.

To explore what’s driving holiday shoppers to brick-and-mortar retail stores and the experiences they’re expecting from retailers this year, Theatro partnered with the third-party survey platform Pollfish to uncover the holiday shopping plans of 500 U.S. consumers aged 18+.

Jingle Sales and AI Tales: Key Findings of the Theatro 2024 Holiday Retail Customer Experience Survey

The results of our survey highlight a blend of consumer optimism and caution: 

• Brick-and-mortar retail stores will see a resurgence in traffic this holiday season, with 26% of shoppers saying they plan to shop more in-person this year.
• 78% of shoppers said they fear for their safety while shopping during the holidays this year, with 60% saying they want retailers to invest in more technology to keep stores safe.
• Shopper expectations are higher this year due to inflation and tighter budgets, with 63% of shoppers saying they plan to prioritize retailers who offer store rewards program incentives.
• Budget pressures will drive more last-minute shopping this year, with 43% of shoppers saying they’ll shop earlier or later for the right rewards incentive, and 34% planning to hold out for last-minute deals to stretch their budget.
• Shoppers anticipate staffing shortages in stores this year, but patience is low: 27% said they’d likely abandon their shopping cart while waiting in line if there’s not enough employees to keep it moving at a reasonable pace.
• Shoppers have less tolerance for store technology that distracts workers, with 24% saying that employees staring at a device is a top annoyance. 
• If AI is used in the store, 48% of shoppers think it should focus on streamlining the store experience above other priorities.

“The holidays are a time for joy, but shoppers are delivering a clear message–safety and service are non-negotiable while shopping for gifts in 2024,” said Theatro’s CEO Chris Todd. “In a year defined by many stresses and pressures, retailers have a chance to stand out by providing memorable experiences that make every visit feel like a gift itself.”

Shoppers Flock to Stores for Holiday Gifts, Yet Fear for their Safety

Shoppers indicated eagerness to hit the stores to purchase holiday gifts, with 26% saying they plan to shop in-person even more this holiday season, and 54% indicating they’ll rely on their typical mix of in-person and online shopping.

What draws them to the store? 64% of shoppers want to see and touch the product, 32% enjoy the festive atmosphere, and 34% appreciate being able to easily return items. When asked what makes them choose to buy something online, 59% do so to compare prices and save money, 51% want to access a greater selection, and 31% flagged that learning about product info online is easier than asking an employee.

However, safety concerns loom large this year against the backdrop of a retail industry-wide safety crisis and New York’s new safety mandate, with 78% of shoppers saying they fear for their safety and security while shopping in-person during the holidays this year. An overwhelming majority agreed that more proactive measures are needed, with 69% saying they would like retailers to invest more in tools and technology to keep stores safe during the 2024 holidays.

Playing the Waiting Game for Last-Minute Holiday Deals

Budget pressures and inflation are shaping where, how and when holiday shoppers spend their money this year, with many choosing to hold off on purchases in hopes of securing a better deal. 

• 43% of shoppers said they’ll flex on timing and shop earlier or later for the right incentive.
• 34% already plan to wait for last-minute deals that help stretch their budget.
• 18% are holding off on shopping until they receive a holiday bonus or cash gifts.
• 25% said inflation and tight budgets are making them be more selective about where they spend their hard-earned money this year, and will prioritize retailers that provide superior customer experiences.
• Loyalty rewards programs will also play a big role in driving store traffic, with 63% of shoppers saying they plan to prioritize retailers who offer rewards incentives above those who don’t this year.

Shopping Cart Abandonment May Rise due to Understaffed Stores 

Retail industry labor shortages remain a critical issue with wide-spread impact–including greater shopping cart abandonment in the stores during the holidays.

• 47% of holiday shoppers are frustrated by understaffed stores and said it negatively impacts their willingness to shop there, with 22% saying they’ll avoid a store at all costs if it’s not properly staffed.
• 72% of shoppers said they anticipate long lines and crowds being the most frustrating aspect of shopping at brick-and-mortar stores this holiday season.
• 27% of shoppers said they’ll likely abandon their shopping cart while waiting in line if there’s not enough employees to keep the line moving.

Shoppers Fed Up with Employees Distracted by Store Tech Devices

This year’s holiday customer expects attentive service when shopping, and retailers’ attempts at rolling out in-store technology could be undercutting customer loyalty.

When asked about their top annoyances while encountering retail store technology:

• 36% are annoyed by self-checkout or self-service devices that are difficult to use or malfunction
• 30% are annoyed when employees haven’t been properly trained in the store’s technology
• 24% are annoyed by store employees staring at a device

With AI, Shoppers Want Less Sizzle and More TLC

As retailers continue experimenting with artificial intelligence, generative AI and augmented intelligence, shoppers bring new expectations about how they hope to see their in-store experience enhanced–with lower interest in ‘bells and whistles’ and a greater interest in practical solutions to common store experience pain points.

• When it comes to AI overall, 35% shoppers said they would prefer to see retailers invest in more human-centered service rather than artificial intelligence, and 25% said they’re indifferent about the use of AI as long as it doesn’t negatively impact their shopping experience.
• If AI is used in the store, 48% of shoppers think it should focus on streamlining the store experience above other priorities, 45% would like to see it used to prevent overcrowding and provide a more pleasant experience, and 39% would like it to provide realt-ime personalized discounts and deals.

Sleigh the Season by Prioritizing the Customer Experience 

“Retailers have an incredible opportunity this holiday season to build trust and loyalty by meeting the evolving expectations of shoppers with incentives, policies and technology that prioritizes the customer experience while also keeping them safe,” said Theatro’s CEO Chris Todd.

Although technology solves many problems, it must be deployed thoughtfully and strategically. For example, As retailers encounter limitations with panic buttons, many are turning to solutions like Theatro’s Personal Safety Alert workflow, which allows store team members to use simple code words to send an alert for help, backed by a generative AI-powered virtual assistant to provide instant guidance on how to respond to the safety crisis while extra support is on the way.

In-store AI and augmented intelligence also requires close examination from the perspective of the customer and store associate, making sure that it doesn’t detract from the human experience but instead enhances associates’ ability to focus on the customer and provide personalized service.

Chris concluded, “At the end of the day, it’s not just about the products on the shelves; it’s about crafting the ideal holiday shopping experience that keeps customers coming back year after year.”

Survey Methodology

Theatro used the third-party survey platform Pollfish to conduct an online survey of 500 U.S. consumers aged 18+ in October 2024. Researchers reviewed all responses for quality control.