Manhattan Associates, Inc.’s 2024 Supply Chain Confidence Survey found that 85 percent of consumers cited inflation and increased prices as a top concern for how they will shop for the upcoming holiday season.

In response, nearly 61 percent of surveyed supply chain leaders reported investing in new technologies and processes to run their businesses more efficiently and reduce overall costs for the season.

Manhattan Associates conducted the survey in September 2024. The survey includes responses from 250 retail executives, 250 in supply chain logistics and 500 consumers, and measures their confidence and concerns for the holiday season.

The High Price of Holiday Cheer
Retailers and consumers surveyed are feeling the pressure of inflation. Approximately 70 percent of retailers anticipate higher holiday costs, with nearly 85 percent of consumers citing increased prices as a top concern this holiday season.

According to the survey, 64 percent of consumers reported having to reduce spending on non-essentials due to inflation, with 52 percent confirming they would prioritize and wait for deals and discounts over every other shopping criterion this season.

Retailers Are Responding with More Efficient Supply Chains
Also feeling the pressure from inflation, supply chain leaders and retailers reported using new technologies, streamlining operations and implementing strategies to optimize operations and reduce costs.

Of the retailers surveyed, 61 percent reported recently investing in new technologies to improve supply chain efficiencies. With this increased efficiency, 44 percent of retailers plan to make fewer seasonal store hires for the holiday season; however, 58 percent of supply chain leaders reported they plan to increase their workforce to manage peak omnichannel demand.

Over one-third of the retailers surveyed have implemented the latest automation technologies to hedge against rising costs (35 percent) and manage last-minute order surges (42 percent).

To mitigate the impact of inflation, nearly 70 percent of retailers said they would offer increased sales and discounts, 56 percent would provide discounts via a loyalty program and 34 percent would offer flexible payment options.

AI to the Rescue
Retailers are also applying the latest AI technologies to solve the above-mentioned problems. Eighty percent of retail and supply chain leaders see AI as a solution and are leveraging AI tools to improve inventory management, demand forecasting and customer service for this year’s holiday season.

Consumers Confident in Retailers’ Fulfillment Capabilities
Despite a general wariness about shipping reliability during the 2024 holiday season, nearly half (46 percent) of shoppers cited in the survey do not anticipate delivery issues this year, and only 34 percent expect delays. The survey results instead show that consumers have adjusted their priorities for cost-effective options over rapid delivery.

While timely merchandise delivery remains important, consumers in the survey care more about knowing their orders’ precise location and estimated arrival time (ETA) over the fastest delivery options.

Of the retailers surveyed, 92 percent noted feeling assured in their fulfillment capabilities, and 87 percent have taken steps to keep shelves stocked with trending and high-demand products.

Among the supply chain professionals surveyed, 87 percent noted preparedness for potential supply chain disruptions.

Holiday Shopping Will Start Early
With only 27 days between Thanksgiving and Christmas, the 2024 holiday shopping season is shorter this year. Consumers surveyed plan to avoid last-minute shopping and spread out their holiday purchases rather than shop for instant gratification. Priorities include free shipping, with nearly 65 percent of surveyed respondents rating it as a top priority this holiday season.

Impact of the Presidential Election on Holiday Spending
Manhattan Associates, Inc.’s 2024 Supply Chain Confidence Survey found that the upcoming U.S. presidential election will impact holiday spending differently across demographics.

  • Baby Boomers are twice as likely to spend less if their candidate does not win the election as Millennials.
  • Concerns about post-election conflicts will drive consumers away from traditional shopping experiences. Nearly 20 percent plan to reduce mall visits, preferring to shop online (22 percent) and crowd avoidance (25 percent) as notable alternatives.

“This is a unique holiday season in many respects, but retail and supply chain leaders seem prepared for the challenge and seem confident in their ability to meet consumer expectations,” said Ann Sung Ruckstuhl, SVP and chief marketing officer at Manhattan Associates. “The importance of an agile and nimble supply chain is evident, and deploying the right technology is more critical than ever before. The key to matching consumer expectations and giving shoppers the memorable experience they demand is to tighten the back end, have complete insight into every part of the product’s journey, and truly embrace a unified commerce approach to succeed.”

Image courtesy Nordstrom