According to research by the National Retail Federation (NRF), millennials will make or break this holiday shopping season. Matthew Shay, president of NRF, explained, “This holiday season retailers will experience the growing purchasing power of Gen Z and millennials.”
Another NRF spokesperson, Ana Serafin, attributed these spending projections to a “strong labor market, robust economy, and tax cuts” that left millennials “in a good economic state to be able to splurge.” And the surveyed millennials definitely plan on splurging.
Data shows that 38 percent of the young adult generation plans to increase their holiday spending—compared to only 9 percent of older generations. The NRF research was confirmed by a second survey done by Discover’s 2018 Holiday Shopping Survey.
CNBC reported that the average millennials spends $861 on holiday shopping. How do businesses plan on earning millennial patrons? Online shopping.
Black Friday has been a long standing tradition in the American economy, followed by Small Business Saturday. However, deals on Cyber Monday are where millennials will spend the most. Online promotions targeted at young adults are the key to growth—and 57 percent of retailers plan to focus their holiday marketing on millennials.
After being labeled the most in-debt generation, and the generation who couldn’t afford a house, millennials are finally feeling economic freedom just in time for the holidays. Maybe if you’re lucky, a millennial will draw your name for Secret Santa!