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Retailing During Christmas Week

Written By: Gargi Sarma 

With its spike in consumer spending and joyous atmosphere, Christmas week is unquestionably one of the most profitable times for merchants. Retailers who want to navigate this season successfully need to not only be aware of current trends but also put strategic tactics into play that are in line with the festive spirit. For retailers, Christmas week is the busiest time of year. During the holidays, consumers spend $1,000 on average alone in the United States. To capitalize on this purchasing frenzy, retailers must have a well-planned approach. This article examines the customs surrounding Christmas week retailing and offers advice on how to approach the practice to achieve the best results.

Christmas week is a retail juggernaut, with shoppers worldwide pouring billions into their loved ones' presents. Let's dive into the frenzy, statistics, and how it compares across different countries.

Global Christmas Retail Stats:

Figure 1: Christmas Retailing Around the World (2022)

Figure 2: Retailing in Christmas: Country Variations 

Figure 3: Global Christmas Retail Sales by Countries in 2022

Christmas shopping is a worldwide phenomenon, with regional variations in methods and tastes. Retailers must comprehend these subtleties to customize their tactics and capitalize on the holiday shopping frenzy. They may make the most of this wonderful season and distinguish out in the competitive landscape by embracing new trends and providing unique experiences.

Online vs. Offline Christmas Shopping:

Christmas is one of the main battlegrounds in the intense war between online and physical purchasing throughout the holiday season. Here's an overview of how various nations are doing in this retail revolution:

Figure 4: Online vs. Offline Christmas Shopping


  • With more than half of shoppers choosing the ease of online buying, the US sets the standard for Christmas shopping.

  • On the other hand, European nations such as the UK and Germany continue to have a strong inclination towards physical retail establishments, potentially as a result of long-standing customs and cultural influences.

  • Japan offers an intriguing example, with a nearly equal distribution of online and offline sales, showcasing both the durability of physical storefronts and a sophisticated e-commerce infrastructure.

  • With a growing percentage of their Christmas shopping done online each year, Australia and India serve as excellent examples of the promise of internet retail in developing nations.

The Digital Santas' Ascent: With the advent of Christmas, online shopping has grown enormously. There's no denying the huge choices, the affordability of shopping in your pajamas, and the frequently comparable prices.

  • About 20% of all holiday spending is anticipated to come from online sales of Christmas goods in 2023, with an estimated $1.3 trillion in sales worldwide (source: eMarketer).

  • According to Deloitte, 40% of worldwide customers aim to begin their Christmas shopping before November, indicating that early bird buying is becoming more and more popular.

But There's Still Bite to Brick and Mortar: Physical stores are not yet ready to be a thing of the past. There's something wonderful about the feel of the merchandise, the joyous environment, and the satisfaction of carrying your purchases out of the store.

  • Despite the dominance of internet shopping, brick-and-mortar retailers are still anticipated to receive a large amount of Christmas spending; estimates place the share in the US at 75% (source: National Retail Federation).

  • As online and offline experiences are more smoothly integrated, omnichannel retailing is becoming more and more important. Personalized in-store recommendations, festive events, and click-and-collect alternatives are luring shoppers back.

Unveiling Seasonal Sales Trends Across Diverse Product Categories during Christmas:

Sales in a variety of product categories exhibit unique trends throughout the Christmas season as customer tastes change in favor of festive themes, gift-giving, and holiday-related activities. Below is a summary of normal sales during the Christmas peak for various product categories:

Figure 5: Example of Sales Trends Between Different Product Segments

  • Electronics and Gadgets: During the holidays, sales of electronics, such as smartphones, tablets, and gadgets, frequently soar. Giving gifts in this category is common, with customers looking to get their loved ones the newest technological advancements. Bundled bargains and exclusive promos help boost sales.

  • Apparel and Fashion Accessories: As people shop for holiday parties, family get-togethers, and seasonal activities, they are in high demand for clothing, winter apparel, and fashion accessories. Retailers frequently launch holiday-themed apparel and accessories to draw customers searching for chic yet cozy options.

  • Toys and Games: Since toys and games are often associated with Christmas, this is one of the most popular categories throughout the festive season. Toy stores are a popular destination for parents and other gift-givers looking to buy gifts for kids, and ongoing deals such as buy one, get one free, help fuel the strong sales in this area.

  • Furnishings & Home décor: As people decorate their homes for the holidays, there is a noticeable increase in home décor. Lights, furnishings, ornaments, and decorations with a Christmas theme become popular purchases. Seasonal sales and discounts motivate people to update their living areas.

  • Beauty and Fragrances: As consumers look for unique presents for their loved ones, sales of beauty and fragrance products are rising. Product packaging with holiday themes, gift sets, and limited edition releases adds to the appeal of this category. Cosmetics and personal hygiene products are common options for stocking stuffers.

  • Food and Beverages: During the holidays, people buy gourmet meals, festive sweets, and beverages for festivities and family get-togethers. This results in an increase in demand for food and beverages. Premium wines, gourmet chocolates, and gift baskets are frequently top sellers.

  • Home Appliances and Kitchenware: As customers search for useful and fashionable home gifts, sales of home appliances and kitchenware have increased. Seasonal sales, package discounts, and price reductions on kitchen appliances draw customers looking for both festive and practical products.

  • Books & Media: During the Christmas season, books, DVDs, and other media become popular gift options. Retailers target customers searching for interesting and thought-provoking gifts by promoting best-selling books, holiday-themed movies, and gift bundles.

  • Travel and Experiences: During the Christmas season, some customers choose to give experiential presents like spa vouchers, trip packages, or event tickets. As more individuals look for unusual and unforgettable gifts, gift cards for services or experiences are becoming more and more popular.

Retailers may adjust their inventory, marketing plans, and promotions to match the unique needs of customers during the Christmas peak by having a thorough understanding of these trends. In many product categories, a successful Christmas sales season can be achieved by adjusting to these cyclical variations.

Companies with Record-Breaking Christmas Sales: 

While the holidays usually bring happiness and gladness, they're also a critical time for merchants to set new sales records. Here's a look at a few businesses that flourished throughout the last Christmas season:

Stars of E-Commerce:

  • Amazon: Record-breaking sales from Black Friday to Cyber Monday marked the "biggest ever" holiday shopping weekend for the unchallenged online retail behemoth. Champion clothing, Fire TV streaming sticks, and Echo Dot smart speakers were among the most popular products.

  • Walmart: The massive retailer reported "positive momentum" and increases in market share in several important categories, including toys, electronics, and clothing, after a successful online and in-store holiday season. The convenience component was highlighted by the growth in online grocery orders.

  • Shopify: This e-commerce platform provider witnessed a 24% year-over-year rise in gross merchandise volume (GMV) on Black Friday alone, as its merchants brought in an astounding $8.7 billion. This illustrates the increasing influence that smaller internet companies have throughout the Christmas season.

Stars of Brick-and-Mortar:

  • Target: The well-known American retailer posted impressive holiday sales, fueled by growth in clothing, toys, and home items—their successful omnichannel strategy combined online and offline buying experiences.

  • Costco: Customers stocked up on groceries, gadgets, and seasonal goods during the holiday season, contributing to the warehouse retailer's continuous high sales. At a period when consumers were becoming more price-sensitive, their value proposition and choices for bulk purchases struck a chord with them.

  • LVMH: This luxury company reported record holiday sales, driven by high demand for clothing and accessories from luxury labels like Givenchy, Dior, and Louis Vuitton. This demonstrates how resilient the luxury market is in the face of economic uncertainty.

The performance of Christmas sales will continue to be influenced by the ever-changing retail environment, consumer tastes, and economic variables. It will be imperative for organizations to comprehend these patterns and make appropriate adjustments to sustain their status as leaders in Christmas retail.

Strategies for Improving Christmas Retailing:

Creating a great shopping experience for customers, strategic planning, and efficient marketing are all necessary to improve Christmas retailing. The following are some tactics to improve your Christmas sales:

Figure 6: Important Aspects of Shopping

  • Initial Planning: Prepare well in advance for the Christmas season. This covers workforce needs, marketing tactics, and inventory planning.

  • Boost Inventory Control: Examine sales information from prior years to determine favored items and patterns. Make sure you have plenty of the in-demand items in store, and add special holiday products. To prevent stockouts, put in place a real-time inventory management system.

  • Multi-Channel Availability: During the Christmas season, a lot of customers like to shop online, so make the most out of your internet presence for e-commerce. Make sure that the experience is consistent across all platforms, including mobile, online, and physical storefronts.

  • Appealing Visual Displays: Make eye-catching, festive displays for online and in-store shopping. To create a cozy and welcoming ambiance, use lights and decorations with a Christmas theme.

  • Discounts and Promotions: To draw clients, organize and carry out focused discounts and promotions. Take into account product bundling or "buy one, get one free" sales.

  • Programs for Loyalty: Create unique holiday loyalty plans to promote recurring business. Reward devoted consumers with special discounts or early access to sales.

  • Tailored Promotion: Utilize consumer information to tailor advertisements and marketing campaigns. Send customised emails that highlight products according to the tastes and previous purchases of the recipient.

  • Marketing on Social Media: Make the most of social media channels to generate interest in your holiday marketing. Use festive content to captivate your audience and run targeted adverts.

  • Easy Shopping: Make purchasing easier, both online and in-store. Provide gift-wrapping services or make digital gift cards easily accessible.

  • Employee Education: Employees should get outstanding customer service training, especially before the busy holiday season begins. Make sure they understand the policies on returns and exchanges, promotions, and items.

  • Extended Business Hours: In order to handle the increasing volume of shoppers, think about expanding store hours. Any modifications to the operation hours should be made clear to customers.

  • Partnerships & Cooperations: Work together on joint events or cross-promotions with other companies. Think about collaborating with regional influencers to market your goods.

  • After-Christmas Sales and Deployment: Make plans for after-holiday sales to get rid of extra stock. Inform clients about these deals to keep them interested after the Christmas rush.

  • Consumer Input and Adjustment: Gather consumer opinions both during and after the holiday season. Make adjustments and modify your plans for the upcoming year based on the input received.

By putting these tactics together, companies can make Christmas shopping for customers memorable and pleasurable, increasing sales and cultivating a loyal customer base.


Creating unforgettable experiences for your consumers is just as important as selling things when it comes to perfecting the art of Christmas retailing. Retailers may effectively traverse the holiday week by putting these techniques into practice, bringing delight to their audience and building enduring relationships. This is the perfect time of year to win over your consumers' hearts with a lasting impression in addition to increasing sales. I hope your Christmas shopping season is joyous and prosperous!

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RapidPricer helps automate pricing, promotions, and assortment for retailers. The company has capabilities in retail pricing, artificial intelligence, and deep learning to compute merchandising actions for real-time execution in a retail environment.

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