Hot chocolate. Unwrapping gifts. Brand loyalty? This holiday season, more than 60% of shoppers say they choose their retailer based on private brand offerings, according to Daymon’s latest Private Brand Intelligence Report.
With millennials stepping into the role of primary holiday hosts, retailers have a unique opportunity to stand out from competitors and become the go-to destination for festive gatherings across generations.
The economics of hosting
While inflation, tariffs and the labor market continue to impact consumers, celebrating the holidays is one area in which they’re not willing to compromise. At a time when almost half of consumers report that they’re struggling or just making ends meet, almost 90% of the 1,000 people surveyed for the private brand intelligence report plan on spending as much, or more, on holiday groceries this year compared to last year. Of that group, 87% plan on making private brands a part of their holiday purchases.
The largest change this year is that a higher percentage of millennials plan to host Thanksgiving and Christmas than boomers or Gen Xers. When combined with Gen Z, that amounts to 140 million people in the United States with a combined spending power of $760 billion.
“Millennials are increasingly taking over hosting responsibilities from their parents, but they’re not celebrating in the exact same way,” Jim Griffin, president of Daymon, explained. “Their focus is on providing an inclusive shared experience, which is also convenient for them to create. Categories like frozen foods, salty snacks, dips, cookies and candy all offer an opportunity to do something special for the occasion that is both easy to prepare and perfect for sharing.”
Trending at this time of Year
Apple and pumpkin spice or cinnamon and s’mores? There isn’t a wrong choice, but there are generational differences in which flavors people crave.
While there is, overall, a high retention rate in the top ten holiday flavors from last year, their order has shifted in sizeable ways. Two long-time favorites moved up the ranking by a combined ten places, with two other standbys dropping by a combined 11 spots. Additionally, gingerbread is the latest to crack the top ten.
For retailers, simply knowing popular seasonal trends isn’t enough; they also need to determine which key categories will reach the right target audiences. Retailers can create immersive holiday experiences by adding non-food items to their holiday limited time offering (LTO) lineup. Soap & bath products, air care and candles are an opportunity to feature seasonal scents while seasonal décor is at home on any festive table.
“Prioritizing the right LTO innovation for private brands is crucial for retailers to become a holiday destination for shoppers,” Jean Ryan, VP of Strategic Advisory at Daymon, explained. “When you have the right selection of seasonal flavors and scents, you create a whole-store experience where every aisle offers an opportunity to engage shoppers and allow them to find new favorites. Pairings open even more possibilities that retailers can use to surprise and delight across the entire store.”
Quality and Convenience
With a short sales window and high visibility, quality assurance is a critical step in developing limited time offers. Have food safety standards been followed? Do new labels meet current requirements while speaking to consumer interests? Is there a clear understanding of where a product sits compared with competitor offerings? Retailers need to ask themselves these questions before bringing a product to shelf.
“LTOs are a great way to differentiate from competitors, but missing the mark on quality, value or flavor can quickly erode trust,” Sarah Diamond, manager of thought leadership at Daymon, explained. “A thoughtful assortment provides retailers with an even bigger opportunity to get creative with cross-merchandising. Shoppers want a simplified in-store experience and something as simple as a standalone display can help grow basket size, boost private brand purchasing and make their store into a one-stop holiday shopping destination.”
Become the heart of the holidays
Seasonal scents. Dynamic flavor pairings. Unique packaging and format. The holidays allow retailers to showcase the power of private brands and win over shoppers for the rest of the year. With more millennials and Gen Z stepping into the spotlight as holiday hosts, the opportunity to become their go-to destination has never been greater.
From food to decor and disposables, leverage Daymon’s Private Brand Intelligence Report to identify trending flavors, optimize your seasonal assortments, and create immersive experiences that surprise and delight.
