Dive Brief:
- Following forecasts of higher holiday retail sales, nearly three-fourths (74%) of shoppers expect their holiday gift budget to remain the same or increase compared to last year, according to a Shopify and Gallup survey of 1,761 U.S. consumers conducted last month. Thirty-seven percent of Gen Z shoppers expect to spend more on their holiday purchases than last year, the survey also found.
- Less than half (41%) of shoppers plan to start their holiday shopping in October, followed by 39% who are doing so in November and 20% in December. Though nearly all (93%) of shoppers plan to buy at least some of their gifts online, almost half of shoppers (47%) anticipate purchasing all or most of their gifts online.
- Shopify found that nearly half (48%) of Gen Z consumers plan to buy at least some gifts through social media, a greater share than the third of all U.S. consumers that plan to do so. Forty-eight percent of Gen Z survey respondents also said they would buy their holiday gifts early if retailers began introducing their holiday deals and promotions sooner.
Dive Insight:
Shopify’s research builds upon other reports detailing Gen Z shopping habits this holiday season. Though Gen Z consumers are expected to buy some of their gifts on social media, the cohort also might return to malls this holiday season. A JLL survey released in September found that 49.6% of Gen Z shoppers expect to do their holiday shopping at malls, more than the 40.8% average.
Shopify’s survey echoes other reports indicating that consumers plan to spend more over the holidays this year. A September report from Deloitte predicted that retail sales would rise between 3.5% and 4.6% year over year, driving holiday sales to between $1.54 trillion and $1.56 trillion between November 2023 and January 2024.
Despite planned increases in holiday budgets and retail sales, consumers are relying more on their credit cards, which could weigh down their budgets this holiday season. In the second quarter, U.S. consumer credit card balances rose 4.6% from the previous quarter to $1.03 trillion, according to the Federal Reserve Bank of New York’s Center for Microeconomic Data. A LendingClub survey released in August found that 29% of Gen Z consumers are living paycheck to paycheck, which they attribute to nonessential spending.