Nearly half of young shoppers are expected to spend more this holiday season, according to new research from the National Retail Federation and Prosper Insights & Analytics. These shoppers, made up of those aged 18-24 includes the oldest members of Generation Z, a group known for having more purchasing power as they become older. Retailers are sure to see the increase in disposable income, as these consumers have carefully been researching their list of gifts and are buying.
This Holiday season, not only are the younger generations spending more money, but they will be doing it primarily at the bricksDec-and-mortar discount stores such as Walmart and Target. Since most young people don’t have access to credit cards, this restricts the ways in which they can shop. Whereas most millennials are headed mobile to shop for the Holidays, 58% of the younger group (aged 20-23) were making most of their purchases offline.
The most anticipated purchases for consumers this season is clothing (61%), gift cards (59%), books/music/movies/video games (44%), toys (41%), and electronics (29%). With gift cards continuing to be a popular low-risk option for many, holiday shoppers are expected to buy an average of four this year, with an average value of $45 per card. The favoured gift cards were for restaurants, department stores, Visa/Mastercard/American Express, coffee shops, and entertainment.
On the flip side, the top gifts for teens this Holiday season include clothing (56%), gift cards (45%), accessories such as hats and shoes (44%), video games (42%), small electronics (37%), toys (29%), jewelry (29%), music (22%), and sporting goods/apparel (20%) according to a survey done by Junior Achievement USA.
As we are amidst the spending season, understanding who is doing the shopping and how, can impact sales for the better or for worse. While many shoppers are increasingly going mobile each year, let’s not forget about those that keep the bricks-and-mortar stores alive. Advertising and merchandising to these core consumers can help to steer just where they are spending their hard-earned cash.
____________________________________________________________________________https://www.retaildive.com/news/nearly-half-of-young-shoppers-will-spend-more-this-holiday-season/511330/
http://www.businesswire.com/news/home/20171116006023/en/Younger-Consumers-Plan-Spend-Holidays
