Spending Gains Momentum Through Holiday Season
Young adults are likely to increase their spending.
With Black Friday and Cyber Monday behind us, the holiday shopping season is in its final weeks, and with it comes a surge of sales. According to The NPD Group, retail sales for the first two weeks of the season are up 6 percent across key merchandise categories.
Sales in the second week of November were 9 percent higher than this time last year, with small home appliances, prestige beauty, apparel and athletic footwear seeing double-digit dollar growth. NPD reports the growth is driven by increases in the volumes of items sold and the average price paid for products.
Most consumers say they will spend about the same as they did last year, but a survey released by the National Retail Federation and Prosper Insights & Analytics shows that young adults between 18 and 24 years old are most likely to show an increase in spending.
“As Gen Z and Millennials gets older, their purchasing power increases, and the rise in disposable income is sure to be seen by retailers,” says NRF President and CEO Matthew Shay. “This group of consumers has spent time carefully researching gifts for friends, family and themselves, and are ready to begin knocking out their shopping lists.”
Just like last year, 61 percent of consumers will be spending their money on clothing and accessories, while 59 percent will give gift cards, a jump from 56 percent last year. “Gift cards continue to be a popular low-risk option for gift givers, and this year we’re seeing food increase in favor as well,” says Prosper Principal Analyst Pam Goodfellow. “As Americans look to celebrate with even more of the special people in their lives, food serves as a great way to come together.”