Q5 2024 in Review: Key Insights and Takeaways for Retailers
Introduction
The holiday season has always been a pivotal period for retailers, but Q5—spanning the late December holidays through mid-January—presented unique challenges in 2024. A shorter holiday calendar, shifting consumer behaviors, and intense competition demanded quick adaptation. Q5 has become an essential window when customers continue shopping—often using gift cards or cash—and brands focus on liquidating excess inventory. To thrive in this environment, brands had to extend sales and rethink traditional strategies.
The holiday season has always been a critical time for retailers, but Q4 and Q5, 2024 brought unique challenges. A shorter holiday calendar, shifting consumer behaviors, and intense competition demanded quick adaptation. To thrive in this environment, brands had to extend sales and rethink traditional strategies.
This report explores how retailers can maximize the potential of Q5 to overcome these challenges and achieve success.
Adapting to a Compressed Holiday Calendar
A compressed holiday season in 2024, shortened by Thanksgiving falling later in November, significantly tightened the shopping window between Black Friday and Christmas, requiring brands to quickly adapt their strategies.
There was a five day decrease in shopping days from 2023 to 2024, which represents a significant reduction in the holiday shopping season.
By comparing the number of shopping days in recent years, it's clear how a shorter season influences consumer behavior. Extended deals and earlier promotions are key tactics for extending the season to create more time to hit sales goals.
For example, ThirdLove launched sales campaigns as early as October, giving consumers more opportunities to shop ahead of the Black Friday rush.
As retailers adapt to evolving consumer behaviors, the concept of extended deals has reshaped the holiday shopping landscape. Gone are the days when holiday shopping peaked on Black Friday or Cyber Monday. Modern holiday spending and promotions are increasingly distributed across the entire season, shifting the focus from "winning days" to a "winning season."
Retailers are responding by launching extended deals in the run-up to the holidays and even after, as they attempt to meet sales goals.
The term “ends soon” has become flexible, with many brands repeatedly extending sale deadlines to maintain urgency and maximize profits. For instance, a sale announced to end in December might continue into January, evolving into "new year" promotions.
This strategy reflects a shift away from concentrated Black Friday and Cyber Monday events toward a season-long push for consumer attention.
Alice + Olivia Weekly Sales Distribution
Percentage of total sales volume by week (November 2024–January 2025)
This flatter distribution of sales gives brands an extended window to hit their targets despite the shorter holiday season. Deals marketed as "Still time to save!" keep the momentum going for brands that haven't yet reached their desired revenue figures.
Inside Alice + Olivia’s Holiday Discount Strategy
Alice + Olivia's holiday discount strategy exemplifies how brands can use adaptive pricing tactics to balance revenue goals, customer engagement, and inventory management.
Alice + Olivia Promoted Sales (% Discount)
Advertised sitewide and category-specific discount offers
By January, the reintroduction of deep discounts effectively targeted value-driven consumers, helping clear out remaining inventory.
While sitewide discounts fluctuated dramatically, product-level discounts maintained consistency, providing a stable value proposition for shoppers.
Alice + Olivia Product-Level Discounts
Average full price discount percentage across all products by week
Alice + Olivia's strategy balances stable product-level discounts with dynamic sitewide offers to manage margins and clear inventory.
Engaging Shoppers After the Holiday Rush
The post-holiday period often brings a noticeable drop in consumer activity, commonly referred to as the “holiday slump.” As shoppers recover from peak-season spending, brands face the challenge of maintaining momentum during this quieter retail window.
Peppermayo has tackled this slump with strategic email campaigns that encourage shoppers to take advantage of ongoing deals.
To complement their email efforts, Peppermayo has also leaned into SMS messaging, delivering a series of discount codes over time. These texts keep subscribers engaged and incentivized to make purchases, ensuring the brand remains top of mind
Younger consumers, in particular, are driving the shift toward self-purchasing after the holidays. Instead of shopping for others, they are more likely to indulge in items they didn’t receive as gifts, treating themselves to discounted products.
Brands like Rellery have leveraged this trend, tailoring messaging to emphasize the "treat yourself" ethos. Targeting these self-rewarding shoppers with personalized promotions and limited-time discounts can drive sales during what would otherwise be a slower retail period.
Maximizing the Q5 Shopping Period
The period after Christmas has become an increasingly valuable shopping window for retailers. Many consumers receive gift cards or cash as holiday presents and are eager to spend. Additionally, returns spike during this time, with shoppers replacing unwanted gifts or purchasing complementary items for their new products.
To capitalize on this window, brands often run clearance sales to clear out unsold holiday inventory or returns and prepare for the new year. These promotions not only attract deal-seeking shoppers but also enable brands to refresh their product lines. This period also provides an opportunity for consumers to purchase items that were returned from Black Friday and Cyber Monday sales at discounted prices.
Additionally, media costs during Q5 are typically lower, allowing brands to amplify their campaigns more efficiently.
Key Takeaways from Q5 2024
The 2024 holiday season highlighted the need for agility and innovation in retail strategy. Facing a compressed calendar and shifting consumer habits, successful brands extended promotions and capitalized on post-holiday opportunities to maintain momentum and drive sales.
As Q5 continues to reshape holiday shopping dynamics, retailers that effectively combine strategic urgency with compelling value will be best positioned to achieve sustained success.