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Will Millennials Increase Holiday Spending?

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By Published On: September 30, 20190 Comments

While sales go down across retail, Millennial shoppers are increasing the amount they spend, says a new study.

According to a survey by OpenX and The Harris Poll, more than 50 per cent of online shoppers are already thinking about Christmas gifts with 37 per cent already making their first purchases for the holiday season.

According to the Spotlight Series – Sales Events: Growing and Evolving, 34 per cent of shoppers have a ‘very sophisticated’ understanding of gift-based sales events, including Christmas and Pre-Christmas.

In the study by OpenX, Millennial shoppers responded more positively than its counterparts for Christmas shopping events. “Millennials are more optimistic about their economic future than any other age group, and this optimism will lead them to spend more this year than any group tested,” explained Dallas Lawrence, Chief Brand Officer at OpenX. “All indications are that the holiday season will be a healthy one for those retailers willing to embrace the important shifts we are seeing in when, where, and how consumers are shopping.”

In-Store vs Online

So, if Millennials are shopping more than the other generations, where exactly do they prefer to do it? The OpenX study predicts that 81 per cent of these shoppers will stick to online channels, with the majority of the spending taking place during the workday.

For gift-based sales events, said the Spotlight Series report, the average spend for a transaction is $395, compared to online-only sales events spending around $416. “Contrary to popular beliefs about overspending at sales events, the vast majority of shoppers appear to have actually spent slightly less ($348) than they had budgeted ($365). Presumably, this is at least partly due to achieving better discounts than expected which offsets any overspending on unplanned items,” said Mark Flecther, the Insights Manager at Power Retail.

Mobile spending is on the rise too, said the OpenX survey, with 69 per cent of Millennials choosing to make a purchase over their phone instead of a desktop or laptop.

“With the right people-based marketing strategy, that reaches the right shopper with the right campaign at the right time, the opportunity is greater than ever to find the right outcome whether it be in-store or online,” said Mr Lawrence.

What Matters to Shoppers?

It shouldn’t come as a surprise that ‘really big discounts’ are the most important aspect for sales shoppers, with 58 per cent saying it’s the most valuable part of an event. Twenty-eight per cent of those shoppers enjoy seeing ‘great discounts on a wide range’, and 25 per cent prefer to see ‘great discounts on top sellers’.

So, what counts as a ‘really big discount’? According to the Spotlight Series report, these prices must offer ‘discounts of at least 50 per cent are required to achieve significant levels of sales conversions’.

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About the Author: Power Retail

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