11.22.23
Just in time for the biggest deals event of the year, shopping app Klarna debuted its Holiday Shopping Report. The data reveals Millennials’ spending resilience, the most popular shopping hacks of the year and more.
Betting on Black Friday
Black Friday remains a pivotal shopping event for US shoppers – particularly among younger demographics.- 74% of US shoppers are sure or considering shopping on this day, including around 9 in 10 Gen Zers and Millennials (89% and 91%, respectively).
- 50% of US consumers mark Black Friday as the day they plan to spend the most – particularly Gen Zers (66%) – followed by Cyber Monday (36%).
- 66% of US consumers are waiting for Black Friday sales to buy big-ticket items, including 74% of Gen Zers and 76% of Millennials.
- 52% of Baby Boomers plan to sit out the Black Friday altogether, possibly rooted in traditional shopping preferences or lack of interest in the commercial buzz.
Prudence Takes Priority
The average budget for gifts in the US is $740, significantly outpacing spending.- US millennial shoppers report the largest budget among all age groups, totaling $1,169, while Gen Zers have the smallest budget at $462. Gen X shoppers and Baby Boomers have set aside budgets of $575 and $525, respectively.
- To maximize value amidst economic uncertainty, US consumers are purchasing budget-friendly items (53%), reducing spending on non-essential items (53%), and shopping fewer items than before (45%). Millennials are the least likely (36%) to reduce spending on non-essentials, compared to Gen Zers, Gen Xers and Baby Boomers (54%, 59% and 63%, respectively).
- 65% of US consumers plan to stick to a holiday budget this year, with Gen Z and Millennials leading the charge (71% and 76%, respectively). Enthusiasm for budgeting weans with age, dipping to 51% among Baby Boomers.
Millennials Lead Shopping Hacks
Consumers are embracing a range of shopping hacks to optimize spending this holiday season, with shopping during sales (64%) emerging as the most popular strategy, peaking at 70% among Baby Boomers. Coupons (50%) and loyalty programs (45%) are also popular.- Millennials show a stronger inclination towards modern shopping hacks like shopping apps (56%) and price comparison tools (50%) compared to any other generation
AI Adoption for Smarter Shopping
US consumers are starting to leverage AI for smarter, budget-friendly holiday shopping.- Over a third (36%) of US shoppers are open to exploring AI to enhance their shopping experience this holiday season, especially Millennials (53%), with Baby Boomers (16%) being the most hesitant.
- Among those open to AI, price comparison (50%) and finding deals and discounts (44%) emerge as the main attractions. Baby Boomers open to using AI place an especially high value in using it for price comparison at (86%).