The Generation Gap In Holiday Shopping

The great holiday shopping rush is upon us and the annual spending extravaganza is underway as retailers do anything and everything within their power to try to lure in that enhanced consumer spend. But according to newly released data from The NPD Group, while every consumer is worth pursuing, depending on their demographic segment, some consumers may well be more lurable than others.

“No consumer can be left behind in today’s increasingly competitive retail environment where shoppers demand a more personalized approach than ever before,” said Marshal Cohen, chief industry advisor, The NPD Group. “In order to win the holiday retail battle, marketers need to address holiday shoppers across every generation, and also make them feel like they matter.”

Baby boomers and Gen X will lead holiday spending this year, according to the 2019 Holiday Purchase Intentions Survey from The NPD Group. Gen X will be the demographic of big spenders, according to the data. Favored areas of spend will likely be clothing and accessories, which 68 percent say they will be purchasing, with entertainment items favored by 44 percent. This is also the generation most likely to shop mass merchants and online pure-plays. About 20 percent will start shopping on Black Friday.

Boomers will be the earliest shoppers out of the gate, with a majority (57 percent) reporting that they plan to shop pre-Black Friday. As a demographic, baby boomers are the most likely to patronize department stores and national chains; they are also the group most likely to give alcohol as a holiday gift.

Gen Z plans to spend the least of all generations, though their spending is increasing year on year. They are also a surprising generation — one third plan to start shopping on Black Friday (the highest generational percentage) but plan to shop online less than both millennials and Gen X shoppers.

Millennials are the generation most likely to shop online — they will also spend less than Gen X and boomers, though their spending is trending up this year.