Millennials become the main consumer! U.S. holiday shopping hot spots

It is learned that recently, PwC released the 2022 US holiday shopping outlook and surveyed 4,000 American consumers on their holiday shopping behavior. The survey showed that 74% of consumers plan to spend the same or more money during the holiday season as last year.

Holiday season consumer spending levels similar to last year

The survey showed that consumers plan to spend an average of $1,430 on gifts, travel and entertainment this year, which is very similar to last year's $1,447. This is a 20% increase from 2020, when the epidemic began, and an increase of more than 10% from 2019.

In addition, 35% of consumers plan to spend more money during this holiday season than last year, mainly high-income groups. Unlike middle- and low-income households, their spending patterns have remained the same in the past few months despite inflation.

In fact, while U.S. consumers’ holiday budgets are roughly the same as last year, consumers with household incomes of $120,000 or more will increase their holiday spending by 15%. They will spend $2,759 on gifts, entertainment and travel, nearly double the average of $1,430.

Currently, low- and middle-income families have less purchasing power for discretionary goods and services, and will seek more discounted items or simply omit them.

Millennials lead holiday spending

According to the survey, millennials (26-40 years old) are the only group that expects to spend more this holiday season than last year, with almost half expecting to spend more this year, compared to 35% of all groups. The average budget for this group is $1,823, 27% higher than consumers as a whole.

Millennials are also the most brand loyal group. 60% of Millennials participate in customer loyalty programs, 66% have a brand or retailer credit card, and they influence online browsing (77%) and in-store shopping (79%) more than any other age group.

At the same time, this group also has higher requirements for the shopping experience, focusing on delivery speed and convenience, as well as brand values. 53% of Millennials will include resale or upcycled items in their holiday shopping lists (compared with 37% of all age groups).

When and where will consumers do their holiday shopping?

The survey pointed out that during this holiday season, 57% of American consumers shopped online and 43% shopped in stores. In addition, many consumers want to combine physical store shopping and online shopping.

Compared with last year, American consumers, who have become accustomed to high inflation, are becoming less price sensitive about holiday shopping. This year, 65% of respondents said price topped the list of the three factors that influence holiday spending, compared with 75% last year.

74% of consumers said they will wait for the best deals, and they expect the best deals to be seen after November. 25% of consumers will start shopping in early November, however, the majority (41%) will wait for the Thursday to Monday of Thanksgiving weekend to do the majority of their holiday shopping.

Black Friday is losing its appeal, with only 20% of people saying they will shop on it this year, compared with 60% in 2015. Meanwhile, less than 17% will wait until after Thanksgiving weekend.

Logistics payment method

As various contactless payment methods continue to increase, debit cards have become the most commonly used payment method for American consumers when shopping online, with 60% of consumers saying they will use them during the holiday season, followed by credit cards and cash.

While still in its early stages, BNPL payment methods are gaining ground, from 5% of consumers using them in 2021 to 13% this year.

In terms of delivery methods, home delivery is favored by most online shoppers in the U.S. When choosing various logistics options, they prefer those that provide proof of delivery, real-time tracking, and time flexibility.

Retailers risk losing up to 40% of their customers if they fail to deliver on time, while 33% of customers will abandon a purchase if they receive the wrong or damaged item.

Holiday shopping brand preferences

Brand trust has taken a prominent place in consumers’ minds since 2020. This year, 93% of respondents said brand trust was their top consideration when shopping for the holidays, similar to last year’s 92% and a staggering increase from the 70% recorded in pre-pandemic years.

Meanwhile, nearly 60% of consumers say brand trust is a very important factor in their holiday purchasing decisions, and they seek out relevant brands that reflect their own values ​​of sustainability and purpose.

For example, health-conscious millennials are more likely than all age groups to support health brands (51% vs. 35%). Consumers also want to learn more about companies’ environmental, social and governance (ESG) efforts. To this end, more than 60% of millennials and Gen Z rely on social media to learn about brands.

Editor✎ Ashley/

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