Younger Consumers Plan to Spend More on Holiday Shopping
A new survey from the National Retail Federation and Prosper Insights & Analytics found that consumers aged 18-24 were the most likely to increase holiday spending this year over last year.
“As Gen Z and Millennials gets older, their purchasing power increases, and the rise in disposable income is sure to be seen by retailers,” NRF President and CEO Matthew Shay said. “This group of consumers has spent time carefully researching gifts for friends, family and themselves, and are ready to begin knocking out their shopping lists.”
According to the survey, 54 percent of all consumers plan to spend the same amount as last year on holiday shopping and 24 percent plan to increase the budget for holiday shopping. However, for those aged 18-24, which includes the oldest Gen Z consumers, 46 percent plan to spend more than last year. And nearly 40 percent of those aged 25-34 also plan to spend more.
More than half of all consumers (59 percent) plan to give gift cards, an increase from 56 percent last year. The number of those giving food or candy also increased, from 31 percent last year to 34 percent this year.
“With an additional full shopping weekend this December, consumers will have plenty of time to browse and complete their holiday purchasing, whether it’s gifts for others or décor for their homes,” Prosper Principal Analyst Pam Goodfellow said. “Gift cards continue to be a popular low-risk option for gift givers, and this year we’re seeing food increase in favor as well. As Americans look to celebrate with even more of the special people in their lives, food serves as a great way to come together.”
Holiday shoppers plan to purchase an average of four gift cards with an average value of $45 per card, the second most-popular gift after clothing. Spending on gift cards is expected to reach $27.6 billion, up from last year’s estimated $27.5 billion. The most popular gift cards include those for restaurants (purchased by 36 percent of buyers), department stores (33 percent), Visa/Mastercard/American Express (24 percent), coffee shops (21 percent) and entertainment (18 percent).