Exclusive - Gen Zs Increase Holiday Spending Despite Broader Pullback In Discretionary Categories

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Insider Intelligence Mentions First Insight | Exclusive - Gen Zs Increase Holiday Spending Despite Broader Pullback In Discretionary Categories

The insight: Gen Z consumers are 44% more likely to increase their spending this holiday season when compared with millennials, Gen Xers, and Baby Boomers, per new research by First Insights shared exclusively with Insider Intelligence.

  • Thirty-six percent of Gen Zs plan to spend more this year, compared with 31% of millennials, 21% of Gen Xers, and 16% of Baby Boomers.

The big picture: While Gen Zs may be more willing to splurge than any other generation, holiday spending as a whole is set to be fairly robust this year even as price concerns remain top of mind.

  • Four in five (81%) of consumers plan to spend as much as or more than last year on their holiday purchases, although fewer people are in the market for luxury goods, toys, and electronics.
  • The focus on price should give value-oriented players, including big-box retailers like Walmart and Target, as well as discounters a boost this quarter. Nearly six in 10 consumers (58%) say they prefer to do their holiday shopping at big-box stores, while 47% opt for ecommerce marketplaces and 34% favor discount retailers.

Looking ahead: With consumers exhibiting more conservative purchasing behavior, retailers should lean on a variety of tactics—including but not limited to promotions—to drive sales.

  • Consider rolling back (or pausing) return fees and extending return windows. Three-quarters of shoppers will think twice about shopping at retailers that charge for returns, and the same proportion expect a return policy between 30 and 60 days.
  • Expand gift card options. Around three in four (72%) shoppers plan to purchase gift cards this year, and much of that demand is being driven by Gen Z.

Read full article on Insider Intelligence.

press release  voice of the customer  Gen Z  Report  Target  VoC  consumer spending  Walmart  CONSUMER REPORT  shipping costs  Holiday Shopping  Holiday Season  consumer insights  2023