The 2024 Supply Chain Confidence Survey – Key Findings Ahead of the Holiday Season

As the 2024 holiday season approaches, inflation, inventory concerns, and shifting consumer behaviors are shaping how retailers and supply chain leaders prepare. The 2024 Supply Chain Confidence Survey presented by Manhattan Associates reveals the key concerns and strategies driving decision-making during this peak season.

Manhattan Associates’ Supply Chain Confidence Survey was fielded by a third-party provider and conducted from August 23 – September 6, 2024. Responses were collected from 500 management or senior-level officers in retail and supply chain logistics organizations in the United States representing executives that operate stores and online venues in the following sectors: Beauty; Household Goods and Furniture; Consumer Electronics; Healthcare; DIY and Home Improvement; Fashion; Grocery; Sport and Leisure Goods; and Pet Goods.

Additionally, 500 adult (18+ years old) consumers in the United States were surveyed about their sentiments and attitudes going into the 2024 holiday shopping period, plans for purchasing gifts, how they’re spending amid the rising costs of goods, and what retailers should do to earn their business.

93% of consumers say price increases over the past few years have had a moderate or strong negative impact on them.

• Over two-thirds (67.8%) of consumers think that the rate of inflation is getting worse.

70.4% of retail leaders anticipate that holiday costs in 2024 will be higher than in previous years, driven by inflation and rising shipping costs.

Consumers are adjusting their holiday spending: 60% plan to buy fewer gifts, while 57% will seek less expensive options, and 52.2% will look (and are willing to wait) for sales and deals.

Additionally, 74.6% of consumers expect to pay more for their holiday shopping this year compared to last year.

Amid a softening labor market, supply chain leaders and retailers are investing more in technology and automation to navigate peak season demands.

43.6% of retailers plan to make fewer seasonal hires this year, with 68.4% considering hiring a non-priority altogether.

In contrast, 58.4% of supply chain leaders plan to increase their workforce to manage peak demand, despite labor constraints.

To make up for fewer seasonal hires, 34.8% of retailers are utilizing automation, while 52.4% of supply chain leaders are investing in improving logistics software.

61.2% of retail leaders reported recent investments in new technologies to improve the efficiency of their supply chain.

The upcoming election has cast a shadow of uncertainty over the holiday shopping season, potentially impacting consumer shopping behaviors.

Nearly a quarter of consumers (23%) said they plan to decrease spending if their preferred candidate loses, yet there's a notable generational divide.

• Baby Boomers (aged 65 and older) are more likely to spend less if their preferred candidate doesn’t win the election (29.9%) compared to Millennials (ages 35-44) (12.3%) and Gen X (ages 45-54) (19.8%).

Concerns about post-election conflicts are driving consumers away from traditional shopping experiences. Nearly 20% plan to reduce mall visits, with a preference for online shopping (21.6%) and crowd avoidance (24.8%) emerging as notable alternatives.

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