Consumer Behavior

Young shoppers spending most this holiday season

Photo by istock.com

October 19, 2021

While a good number of shoppers expect to spend the same or slightly more on holiday gifts this year, it will be the youngest consumers spending more than other generational segments.

Consumers plan to spend $598 on average compared to $539 in 2020 and 71% will spend as much or more than last year. Older millennials will spend $705 on average, according to the 15th annual Holiday Shopping Survey from research firm Accenture.

A hefty number of consumers, 70%, will be making charitable gift contributions.

The survey, which polled more than 1,500 U.S. consumers, found 76% are looking forward to spending time with loved ones this holiday season, with 75% planning to buy gifts for close family and 41% buying gifts for neighbors, colleagues and friends.

The research also highlights the ongoing desire to support local communities, with 58% of consumers aiming to buy from local and independent retailers, according to a press release on the findings.

"While the anticipated increase in consumer spend will come as welcome news to retailers, our survey shows that the events of the past year are likely to affect the spending habits of different generations of people this holiday season," Jill Standish, a senior managing director at Accenture and head of its retail industry group globally, said in the release. "Retailers need to respond by keeping safety protocols in place and tapping into the shopping temperament in each community they are trying to serve. This requires increased local decision making assisted by analytics tools to spot changing market conditions and evolving patterns of behavior as they happen."