This holiday season, US retailers will experience the growing purchasing power of Gen Zers and millennials, according to the latest survey data from the National Retail Federation (NRF) and Prosper Insights & Analytics.
- Some 43% of Gen Zers (those ages 18–24) and 38% of millennials (ages 25–34) plan to spend more this holiday than they did last year. But, in absolute terms, their spending falls short of the $1,007 average spend for all adults, which is driven by those 35 years and older.
- The top toy for girls is Barbie, and for boys, LEGO.
- Some 70% of holiday shoppers plan charitable activities this holiday, and 78% of charitable consumers say it will have no impact on their overall holiday spending.
The growing purchasing power of Gen Zers and millennials will impact retail sales this holiday, according survey data released by the NRF and Prosper Insights & Analytics on November 21.
US Youths Plan to Spend More in 2018, and Gen Xers Plan to Spend the Most
Some 43% of Gen Zers (those ages 18–24) and 38% of millennials (ages 25–34) plan to spend more this holiday than they did last year. But their spending still falls short of the $1,007 average spend for all adults, which is driven by those 35 years and older. The Prosper survey found 77% of all consumers plan to spend the same or more this year. Only 9% of those 65 and older plan to spend more this year. The data reveal that as of November 7, fully 78% of shoppers still had holiday shopping to do, and 45% hadn’t even started.
The average shopper plans to spend $1,007 this holiday. Gen Xers (ages 35–44) are expected to be the biggest spenders, at $1,183, followed closely by those ages 45–54, who plan to spend $1,126. By contrast Gen Z shoppers plan to spend $573, 43% less than the $1,007 average; millennials plan to spend $947, which is 6% less than average.
For girls, Barbie tops the list of must-have toys, a coveted spot that it has held since 2008. Dolls hold six of the top ten spots in the list of must-have toys, including #2, a generic “doll” and #9, “baby dolls.” LEGO is a hot #5 for girls anWd leads the list at #1 for boys, followed by generic cars and trucks, and then video games.
Shopping and Giving
In addition to shopping, 70% of holiday shoppers plan to engage in charitable activities, from donations (both financial and products) to volunteering at soup kitchen and purchasing from retailers that donate to social causes. Of those donating, 78% said it would have no effect on their overall holiday spending. Older generations are more likely to donate financially (48.6% of ages 65+ will give financially versus 26.1% of those ages 18–24), while younger consumers lean more toward tangible donations.