Amazon (NASDAQ: AMZN) solidified its position as the go-to destination for holiday shoppers this year, with consumer spending trends signaling a robust holiday season despite economic uncertainties.
According to Goldman Sachs' 2024 Holiday Survey, authored a team of analysts led by Brooke Roach, CFA, 35% of U.S. consumers indicated Amazon.com Inc. as their top choice for holiday spending, marking a notable year-over-year (Y/Y) increase, and outpacing other retail giants like Walmart Inc. (NYSE: WMT), Target Corp. (NYSE: TGT), and Costco Wholesale Corp. (NASDAQ: COST).
Amazon, Walmart Lead, But The Gap Widens
Amazon and Walmart continue to be the two most preferred retailers during the holiday season.
Walmart, while holding its ground as the second most popular choice, experienced a slight decline in preference, along with Best Buy (NYSE: BBY). Meanwhile, Target and Costco trailed behind but posted modest gains in their share of consumer spending intent.
The shift reflects Amazon's growing dominance in online retail, bolstered by early promotional events such as its July and October Prime Days.
These events appear to have captured consumer attention early, with over half of shoppers starting their holiday shopping before Thanksgiving - a trend consistent with previous years.
Online Shopping Remains King
E-commerce remains the reigning channel for holiday purchases, with more consumers opting to shop online this year compared to 2023.
"Online shopping remains the preferred shopping channel," the report stated.
The survey revealed that 45% of male consumers and 38% of female consumers plan to do the majority of their shopping digitally - a two percentage point increase Y/Y for both groups.
Younger demographics are driving this trend: Over 50% of Gen Z and Millennial shoppers said they plan to complete the bulk of their holiday shopping online, favoring the convenience of digital platforms.
"Electronics saw the largest increase in consumer preference for online shopping compared to last year (+4pts Y/Y), followed by gift cards, media and experiential gifts (all +3pts Y/Y)," Goldman Sachs wrote.
Black Friday Is Back in Style
While early shopping trends are on the rise, Black Friday continues to hold its ground as a pivotal moment in the holiday shopping season. The survey showed a two-point increase in the number of consumers planning to complete their holiday shopping on or before Black Friday compared to last year and an 11-point jump compared to 2019.
This year, the calendar provides an added boost: Black Friday falls five days later than in 2023, giving shoppers additional time to prepare.
Notably, low-income consumers remain the most likely to take advantage of Black Friday deals, emphasizing the importance of sales and promotions in driving their spending decisions.