Young to spend more holiday season
Holiday shopping is in full swing and consumers still have a lot more spending to do as they check off every item on their holiday wish list, according to a new consumer sentiment survey released by the National Retail Federation and Prosper Insights & Analytics.
“This holiday season retailers will experience the growing purchasing power of Gen Z and millennials,” NRF President and CEO Matthew Shay said. “Whether they are still in college or raising children, these consumer groups embrace the tradition of prior generations and take full advantage of Thanksgiving weekend deals both online and in stores.”
While 77 percent of all consumers surveyed said they would spend the same or more this year, 43 percent of young adults ages 18-24 and 38 percent of those 25-34 said they would spend more. Only 9 percent of those 65 and older are planning to spend more.
“Americans continue to engage in holiday traditions like spending time with family and friends, exchanging gifts and cooking a special meal,” Prosper Executive Vice President of Strategy Phil Rist said. “But today those traditions include going online to research products and compare prices to make informed purchasing decisions.”
The survey found that 50 percent of consumers who own smartphones or tablets said they would use them to research their holiday purchases. Consumer payment methods for purchasing holiday gifts remain consistent with 2017. Credit cards continue to be the most popular form of payment, used by 42 percent of shoppers.
Debit cards are a close second, used by 39 percent, while 17 percent of consumers plan to pay with cash and 2 percent will use checks. Forty-four percent of consumers plan to use emerging payment methods. Those methods include PayPal (35 percent), Apple Pay (8 percent), Samsung Pay and Google Wallet (tied at 5 percent) and Venmo (4 percent).
In addition to shopping, seven in 10 holiday shoppers plan to engage in charitable activities including donating money and items to a charity or cause. Of those donating, 78 percent said it would have no effect on their overall holiday spending. Older generations are more likely to donate financially, while younger consumers lean more toward tangible donations.
