In-Store Experience Will Separate the Winners and Losers This Holiday Season

This holiday shopping season is shaping up to be the most unpredictable in years. The macro-economic data has been sending mixed signals for months, with weak jobs reports alongside decent growth and retail sales that keep on keeping on. Throw in a sales funnel that increasingly looks more like a waterpark slide (and is about to be twisted further by the rise of agentic artificial intelligence) and you have a recipe for migraines in retailers’ marketing teams. However, amid the uncertainty, one thing remains true: most retailers will win or lose the holidays in their stores, not online.

The very online media tends to overlook the fact that most sales — at least 80 percent — still happen in stores. Yes, the path to purchase has become complex with consumers interacting with brands at least half a dozen times on websites, social media, connected TV and through AI, but more often than not that path leads to a brick-and-mortar store.

A recent Salesforce survey found that nearly 80 percent of people will shop in stores this year. It was the most popular channel across generations, including Gen Z. Shoppers still want places to gather with friends and see and touch many products before buying them. That feels especially important when choosing holiday gifts.

So how do retailers get it right this holiday season? Here are three tips:

1. Start early, emphasize value.

There are enough warning signs that consumers are feeling the inflationary squeeze to temper expectations for holiday spending. Deloitte predicts an overall sales increase of 3.4 percent, the slowest rate since the pandemic. And some of that will be due to inflation rather than more demand.

Consumers are clearly cautious but still willing to spend. In this environment, early promotions will play a bigger role than ever in capturing consumer spend before competitors. Amazon.com, Walmart, and Target are all stretching the holiday season with sales events in October. They’re also emphasizing private-label lines in their messaging, giving consumers lower-cost alternatives that are aligned with brand trust. Bundles, tiered discounts, and marketing and merchandising displays that emphasize value, not just price, will be essential to persuade consumers to buy while preserving margin.

2. Lean into retail media.

In this tough environment for margin, retail media networks are emerging as a major competitive advantage. Even as projections for overall ad spend are being revised down this year, retail media is expected to see a nearly 14 percent increase. Growth at Walmart’s Connect network is running at 31 percent a year. Crucially, ad sales on these networks are high-margin revenue, enabling retailers to offset tariff costs elsewhere in their businesses and hold prices down. However, many retailers are still leaving money on the table when it comes to in-store retail media. Only around 1 percent of retail media spending goes toward in-store advertising — the point where most transactions are made.

Recent research from GroceryTV underscores just how effective in-store retail media networks can be. Its findings show that in-store media consistently outperforms other major channels in terms of ad experience, delivering higher engagement and more meaningful connections with shoppers. Unlike traditional advertising that interrupts, in-store media enhances the shopping journey, providing relevant, timely information right where purchase decisions are made. That’s especially true of in-store audio, which can deliver advertising that doesn’t require shoppers to pause and look at a screen.

3. Create omnichannel brand experiences.

It goes without saying that consumers now expect to move seamlessly between digital and physical channels using features such as mobile check-in for curbside pickup, real-time inventory visibility, and personalized offers that sync online browsing with in-store visits.

But above all, the holidays call for a sense of excitement. After several years of retrenchment and store closures, major retailers are regaining their in-store swagger and creating unique experiences. They’re bringing in digital touchpoints like smart mirrors and interactive kiosks to extend the online journey into the physical space.

Here, too, retail media has a role. My own area of expertise is in-store audio, blending ads and music to create a multi-sensory brand experience. Call me biased, but it’s hard to imagine holiday shopping feeling as joyful without a festive soundtrack. Thoughtful advertising can add to the sense of spectacle and excitement that drives sales. Best Buy has started selling “takeover” packages to its advertising partners that let them place their brand throughout its stores, from the entrance to TV screens and laptop displays. It’s an ideal opportunity for creating impactful moments around a new product launch or major promotion.

This holiday season may be clouded by uncertainty, but by blending data and technology with creativity and value-driven marketing messages, retailers can capitalize on increased foot traffic to their stores and create connections with consumers that last.

Matt Elsley is the co-founder and CEO of QSIC, the global intelligent in-store audio platform that uses data and AI to remove friction from the planning process and elevate and measure the impact of audio.