Summer Prep Means Holiday Success
Summer is the season for swimming and cookouts, but for retailers, it’s also a sign that it’s time to prepare for colder weather and the holidays that follow. Grocery retailers can help make holiday celebrations more memorable for consumers by curating seasonal items and supporting both new and old traditions. Successful forecasting begins with early strategizing about the innovative and exciting products that create long-term customers who will continue to shop at their stores after the holidays conclude.
Following are three things that retailers need to keep in mind when planning for the 2025 holiday season.
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1. Consider Top Food and Beverage Trends
Healthy Food and Drink Products
Over the past few years, there has been an increase in demand for healthy food and drink products, with 50% of consumers prioritizing products that are good for them. This means that as consumers shop for the products to include in their holiday spreads, retailers need to include fresh, local and seasonal produce that can be the center of customer holiday celebrations. The healthy protein trend makes offering an increased assortment of high-quality fresh meats and cheeses a winning strategy.
Busy Consumers Want Convenient Options
Busy schedules are a natural part of the holidays, and 44% of consumers say that they’re likely to spend more on convenient products. In fact, according to a report from SPINS, natural and specialty refrigerated meals and side dishes have grown 17% year over year, demonstrating that consumers want tasty products that are both convenient and healthy. To cater to this demand, retailers should offer grab-and-go options that are convenient but still exciting enough to be the center of a customer’s holiday spread.
New Demand for Nonalcoholic Beverages
Alcoholic beverages have traditionally played a significant role in holiday celebrations. The new category of nonalcoholic options presents an opportunity for savvy retailers. Market research shows that nearly 40% of U.S. respondents are reducing or eliminating their alcohol consumption, otherwise known as a “sober-curious” lifestyle. Younger generations, such as Gen Z and Millennials, drive this trend, as they desire a more moderate lifestyle that aligns with improving their physical and mental health. As demand continues to surge for nonalcoholic offerings, brands have answered and are delivering a wide assortment of nonalcoholic beers, wines, spirits and mocktails. Retailers should respond accordingly by carving out some space to win over these sober-curious consumers.
Win the Holiday With Cheese and Bakery Items
Cheese and bakery items are expected to win the holiday season for retailers. Not only do they present the perfect opportunity for a fun and exciting holiday twist that will catch any consumer’s eye, but they are also known to draw a crowd and bring people together. Cheese sales are anticipated to see a 10%-15% increase during the fall, underscoring the role of cheese in celebratory meals and holiday recipes. Because of the long aging process, it’s essential to plan cheese offerings well in advance to ensure that your store has the right assortment available to complement the holiday season.
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Additionally, survey results show that 76% of consumers are more likely to treat themselves to desserts during the holiday season, and 61% say that they plan to stock up on desserts and sweets to elevate their holiday spreads. For retailers to remain top of mind for consumers not just during the holidays, but also year-round, those businesses need to plan their cheese and dessert offerings in advance with seasonal flavors and assortments.
2. Drive Success with In-Store Holiday Touches
Retailers need to create an emotional connection with their consumers to bring more patrons into their stores, especially because of the retail overload that consumers experience during the holidays. Grocers can do so by increasing their offerings of in-person product samplings and in-store events to attract busy customers throughout the holiday season. Retailers should also create a festive atmosphere with holiday decorations, music and lighting to make the shopping environment more memorable. In-store events offer a sensory experience that can’t be replicated through the transactional nature of online shopping and add a personal touch that makes shopping feel like part of the holiday experience.
However, while in-store promotions and experiences are important, retailers still need to take an omnichannel approach to ensure that they’re reaching customers of all ages. While some consumers will be drawn to in-store events, others simply won’t have time in the day for in-person shopping and will seek efficiency above all else.
3. Gain a Competitive Edge During the Holidays
During this holiday season, retailers must go beyond standard deals and discounts and offer personalized promotions, which will go a long way toward helping them gain a competitive edge. More than half of consumers agree that financial stress makes it difficult to celebrate the holidays in the way they would prefer, creating an opportunity for grocers to cultivate affinity and win business with strategic pricing and promotions.
Grocers must leverage loyalty and relevant customer data to align promotions with individual consumer preferences, based on what they’ve purchased in the past. Holiday-themed bundles are also a retailer’s recipe for success, whether baking mixes, inclusions or beverages, because such products appeal to consumers seeking value on tight budgets.
The bottom line is that to be successful during the holiday season, grocers must cultivate their strategy and product offerings during the summer. With all of these strategies in mind, retailers can look forward to helping make the holidays more meaningful for many. To learn more about the products and trends expected to shape this holiday season, consider the 2025 KeHE Holiday Show taking place in person June 11-12 in Chicago.
