Post-Holiday Retail Insights: Analyzing Returns, Deliveries, and Key Findings from 2024

The holiday rush may be over, but the real work for retailers is just beginning. As gift-giving winds down and returns ramp up, the post-holiday period offers a valuable window into consumer behavior and operational performance. This crucial data – from shipping patterns to return rates – gives retailers essential insights to shape their logistics and fulfillment strategies in the year ahead.

Holiday Sales Surpass Expectations

Retailers in 2024 had a banner holiday season, exceeding expectations. Globally, sales were up 3% vs. a year ago, with total online sales totaling $1.2 trillion.¹ The National Retail Federation predicted a modest 3% growth in the United States, but retailers turned in a sizable 4% increase to reach $994 billion, with online sales jumping almost 9% to $241.4 billion.^2,3

Consumers Embraced Technology for Holiday Purchasing

Holiday shoppers increasingly turned to their phones for purchases, with mobile commerce reaching new heights in 2024. Smartphone transactions accounted for 70% of online holiday sales, up from 67% in 2023.⁴

Interestingly, consumers also embraced new technologies including AI and social media. A whopping $229 billion of global online sales were influenced by AI and Adobe reports that generative AI-powered chatbots serving as shopping assistants increased traffic to retail sites by 1,300%.⁵

Returns Impact Retail Sales

The clock is still ticking for many retailers to accept returns, which may affect total holiday sales. Returns are skyrocketing and are expected to hit 17% of all merchandise sales – a $890 billion problem for retailers.⁶ Global returns have steadily increased by 28% over 2023, reaching $122 billion and could climb to $133 billion.⁷

The practice of “bracketing” — buying multiple versions of an item with the intent to return some — has become widespread, with Happy Returns reporting that 66% of shoppers regularly use this strategy.⁸ Perhaps more concerning is the rise of “wardrobing,” where consumers purchase items for single-use occasions before returning them. This behavior, which 69% of consumers admit to doing, creates a significant environmental impact through increased shipping and processing while also straining retail operations and labor resources.⁹

Package Theft Remains Rampant

Package theft has emerged as a significant challenge in the e-commerce era, with “porch pirates” increasingly targeting unattended deliveries at residential doorsteps. This growing security concern affects both retailers and consumers, threatening the convenience that has made online shopping so popular in the first place.

The data is startling:

• 26% of people worldwide have had a package stolen from their porch, front door, or mailbox. Of these, 40% said the theft occurred within the past year.¹⁰
• 72% of reported package thefts occur between November and January.¹¹
• Most packages are stolen between 9 am – 5 pm.¹²

Smart Lockers are the Perfect Partner for Retailers

Retailers are increasingly turning to technology like smart lockers in an effort to combat rising return rates, prevent stolen merchandise (by shoplifters or porch pirates), and increase store efficiency. By joining Parcel Pending by Quadient’s Open Locker Network, retailers can tap into the benefits of smart lockers without the upfront cost of developing their own locker delivery network.

Hosting Open Network Lockers at your store(s) can deliver:

• MORE Efficiency: Stores recognize that they can deploy their employees to other tasks while shoppers enjoy the speedy self-service process of picking up or returning an order. 56% of shoppers preferred to return their items in-store and returning to the store is the lowest hit on retailers’ margins.¹³
• MORE Convenience: Shoppers can retrieve their orders on their schedule, and lockers are often available 24/7/365. Recent data from Parcel Pending by Quadient revealed that 40% of locker activity occurs outside of the core 9-5, with parcels even being dropped off by consumers at 2 A.M. Open Network Lockers also solve a common challenge for consumers who lack printers at home by allowing them to print return labels directly from the kiosk.
• MORE Profits: Given continued problems with package theft, consumers are looking for secure, alternative options to home delivery. 15% of shoppers make an additional purchase when completing an in-store return for online shopping purchases.¹⁴
• MORE Loyalty: Customers who wait less than two minutes for parcel pickups are four times more likely to return to the store.¹⁵

The 2024 holiday season saw robust global and U.S. retail sales growth, driven by AI-powered shopping assistance and increased mobile commerce. However, retailers face mounting challenges from rising return rates and package theft. Smart lockers deliver efficiency, convenience, and security while driving incremental sales, loyalty, and foot traffic. Get these insights and more in our Post-Holiday Insights infographic.

Sources:

1. Salesforce. Holiday Shoppers Spend a Record $1.2T Online, Salesforce Data Shows. www.salesforce.com. January 6, 2025. https://www.salesforce.com/news/press-releases/2025/01/06/2024-holiday-shopping-data/
2. GlobalData. US 2024 holiday season retail sales exceed expectations. finance.yahoo.com. January 17, 2025. https://finance.yahoo.com/news/us-2024-holiday-season-retail-091915366.html
3. Reuters. US online holiday sales rise nearly 9% on mobile shopping boom, report shows. www.reuters.com. January 7, 2025. https://www.reuters.com/markets/us/us-online-holiday-sales-rise-nearly-9-mobile-shopping-boom-report-shows-2025-01-07/
4. Salesforce. Holiday Shoppers Spend a Record $1.2T Online, Salesforce Data Shows. www.salesforce.com. January 6, 2025. https://www.salesforce.com/news/press-releases/2025/01/06/2024-holiday-shopping-data/
5. Haleem, Abbas. Online holiday sales in 2024 ‘most mobile of all time’. www.digitalcommerce360.com. January 7, 2025. https://www.digitalcommerce360.com/article/online-holiday-sales/
6. Dickler, Jessica. Returns are an $890 billion problem for retailers. www.nbcnews.com. December 8, 2024. https://www.nbcnews.com/news/us-news/retail-returns-890-billion-problem-rcna183359
7. Delisline III, Nate. Holiday shoppers spent global record $1.2 trillion online. www.retaildive.com. January 7, 2025. https://www.retaildive.com/news/holiday-shoppers-global-record-online/736532/
8. Dickler, Jessica. Returns are an $890 billion problem for retailers. www.nbcnews.com. December 8, 2024. https://www.nbcnews.com/news/us-news/retail-returns-890-billion-problem-rcna183359
9. Ibid.
10. Vivint. Protecting Your Packages: Global Porch Piracy Insights. www.vivint.com. n.d. https://www.vivint.com/resources/article/global-porch-piracy-insights
11. Parcel Pending by Quadient. The 2024 Parcel Theft Report. www.parcelpending.com. November 26, 2024. https://www.parcelpending.com/en-gb/resources/the-2024-parcel-theft-report/
12. Ibid.
13. Inmar Intelligence. Boost Shopper Loyalty Through Better Returns. www.inmar.com. February 24, 2023. https://www.inmar.com/blog/insights/returns/smarter-returns-build-better-shopper-loyalty
14. Bauer, Fin. Will BOPIS and BORIS Replace Delivery?. www.therobinreport.com. June 20, 2022. https://www.therobinreport.com/will-bopis-and-boris-replace-delivery/

15. Rakuten Ready & Solis, Brian. Rakuten Ready 2019 Time Study. www.rakutenready.com. October 29, 2019. https://www.rakutenready.com/time

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