Retail Holiday Promotions: How Grocers Can Optimize for Bigger Baskets and Better Experiences

Promotions are the primary motivator for driving foot traffic in grocery retail.

During the holidays, well-planned promotions can do more than move inventory – they capture higher-margin baskets, strengthen brand loyalty, and create lasting impressions on shoppers.

The holiday season is a time for gathering… whether it’s family around the table, friends sharing a festive meal, or colleagues enjoying a holiday potluck. For grocery retailers, this seasons is an opportunity to connect with consumers through discounts and bundles that make entertaining easier, more enjoyable, and stress-free.

But holiday traditions evolve, and so do consumers’ needs. Modern holiday shoppers often face the pressures of planning menus that accommodate diverse dietary preferences. Grocers must evolve if they expect to be the one-stop location for holiday food and meal preparation.

Understanding Holiday Shopping Behavior

Holiday grocery shopping isn’t business as usual. Shoppers buy specialty items, experiment with new ingredients, and make impulse purchases more often than any other time of year.

According to forecasts, holiday spending continues to climb, and consumers are expected to spend a record $902 per person, and non-gifts, such as food, candy, decorations, greeting cards and other holiday items, are expected to be $261 per shopper. In fact, grocery stores are the second-highest holiday shopping destination, just behind online retailers. Nearly half of all adults (46%) plan to make holiday-specific grocery purchases.

While not often shown in the splashy commercials, grocery stores are the second highest holiday shopping destination, behind online shopping.

What does this mean for retailers?

Holiday shoppers are mission-driven but emotionally influenced. They’re looking for value, inspiration, and convenience. Promotions that tap into those emotions can transform a simple store visit into a memorable shopping experience.

Holiday Promotions in Grocery: What Shoppers Really Want

By using retail promotion optimization tools, grocers can analyze demand patterns, seasonal behaviors, and price elasticity to design offers that meet both shopper expectations and profit goals.

Top shopper priorities this season:

➥ Value and trust: Deliver consistent, transparent pricing that reinforces perception of fairness. Grocers can stand out this holiday season by crafting promotions that address the unique needs of holiday hosts and guests alike:

➥ Ease and convenience: Simplify the meal planning and shopping process.

➥ Inspiration: Offer ideas and pairings that make holiday entertaining simple and exciting.

A successful holiday promotion strategy balances creativity with data-driven precision. Here’s how grocery retailers can stand out:

1. Highlight Seasonal Gatherings: Promotions should focus on the moments that matter. Create promotions that celebrate connection. Position your store as the ultimate source for creating those cherished memories.
2. Offer Recipe and Pairing Inspiration: Shoppers often struggle with planning holiday meals. Inspire shoppers with curated meal bundles that include all the necessary ingredients. Pair suggestions with complementary items, like holiday wines, craft beers, or festive mocktails. For example, a promotion for a roast turkey could include recommendations for seasonal side dishes and a perfect Pinot Noir.
3. Ease the Stress of Hosting: Help shoppers simplify their holiday prep by bundling items they might not think of, like cheese platters paired with crackers, dips, and wine. Include options for dietary restrictions, such as gluten-free, dairy-free, or plant-based bundles, to cater to a wide range of needs.
4. Encourage Bigger Baskets: Drive larger transactions by promoting your store as a one-stop solution. Showcase various items—everything from cocktail mixers to baking essentials—so shoppers can confidently check off their lists without visiting multiple stores.

Using Retail Promotion Optimization to Maximize Impact

For many grocers, promotion optimization software is transforming how campaigns are planned and executed.
By combining competitive intelligence, demand modeling, and price elasticity data, you can understand which offers will actually drive incremental profit – and which may just shift volume without ROI.

Promotion optimization helps retailers:

• Identify high-impact offers that attract traffic and protect margin
• Predict which categories will respond best to discounts or bundles
• Evaluate performance in real-time and adjust offers dynamically
• Align pricing and promotions with shopper perception across channels

This holiday season, make your promotions merry, meaningful, and measurable.

Read the full article in Western Grocer.