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Retail spend is up and millennials are to thank

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January 24, 2020

Retail spending is up, according to a TD Bank report, and millennials are the consumer generation leading the charge.

The bank's biannual survey, Retail Experience Index, reveals millennials are likely to make a major purchase in the next six months – a big ticket item of $500 or more, according to a press release. Millennials made, on average, nearly four major purchases in the past year, while Gen X and baby boomers combined averaged just 2.8 major purchases during that time, stated the release.

"Retailers should take notice, as millennial purchasing habits are driving the retail world," said Mike Rittler, general manager of retail card services, personal lending and business development at TD Bank.

The report also revealed other statistics:

• Americans are spending $245 more per major purchase than they did in 2017, averaging a $1,884 price tag on their last major purchase.
• Nearly seven in ten Americans (69%) say they plan to make a large purchase in the next six months, up 10% from two years ago.
• Additionally, more than half (57%) of Americans are creatures of habit, often picking the same brand when making major purchases.
• With regard to customer retention, 69% of consumers are members of a retailer loyalty program and cite that cash back and discounts are the most appealing and useful rewards.

"Capturing and retaining engaged customers will continue to be an essential part of retailers' strategy. As consumer's shopping habits evolve and the factors that drive customer loyalty change, it's important that retailers work with partners who will help them analyze data and behaviors to create new programs that cater to their customer bases across generations, preferences and levels of income," Rittler said.