What's Happening?
Retailers are preparing for the 2025 holiday season with expectations of value-driven spending, increased mobile e-commerce, and significant sales during Black Friday and Cyber Monday. According to a report by McKinsey, consumer sentiment remains lower than pre-pandemic levels, with 19% of surveyed consumers planning to cut back on nondiscretionary spending while splurging on discretionary items. Sezzle's cofounder, Paul Paradis, predicts that flexible payment options will play a crucial role in holiday shopping, as 78% of Sezzle users indicated that having more time to pay impacts their purchasing decisions. Mobile e-commerce is expected to dominate, with large retailers seeing 53% of online sales through mobile devices in 2024.
Why It's Important?
The shift towards value-driven spending and mobile e-commerce reflects broader economic uncertainties, including inflation and tariff concerns. Retailers are adapting by offering flexible payment options, which can preserve margins while expanding access to consumers. The emphasis on mobile e-commerce highlights the growing importance of digital platforms in driving impulse purchases and providing convenience. This trend is likely to benefit retailers who can effectively leverage mobile technology to enhance the shopping experience, potentially leading to increased sales and customer loyalty.
What's Next?
Retailers are expected to continue promoting holiday items earlier in the year, with Black Friday and Cyber Monday remaining key sales events. Sezzle plans to roll out holiday incentives for retailers ahead of Black Friday, aiming to boost sales through flexible payment options. As consumers spread out their spending to manage budgets, retailers may need to adjust strategies to cater to value-conscious shoppers, potentially leading to more personalized shopping experiences and enhanced loyalty programs.
