Acumen Insights

New Consumer Spending Patterns Amongst Younger Generations

By April 12, 2017 No Comments

A survey by HRC Retail Advisory as reported in BusinessWire examined shopping habits, attitudes, and influences driving Millennials’ and Generation Z’s purchasing decisions. A total of 31,000 participants in the United States and Canada were surveyed. Significant findings from the research include:

Malls are being shopped differently. Contrary to beliefs, malls are still popular, especially among Generation Z shoppers. Approximately 60 percent of all survey respondents said they visit a mall or shopping center at least once a month. Even more Generation Z respondents (72 percent) reported going to the mall this frequently. However, unlike before, shoppers are going to malls with a specific purpose and in search of specific items. Generation Z respondents are also spending more time at the mall and visiting more stores. Approximately 22 percent of Generation Z respondents reported spending more than 90 minutes at the mall when they visit. In addition, they go to an average of four to five stores.

Gifts cards are most popular. All generations prefer gift cards over actual gifts. In fact, 62 percent of all survey respondents said they would rather receive a gift card. This is even more prevalent for Generation Z. Approximately 69 percent of Generation Z respondents reported having a preference for gift cards.

There are different social influences on shopping behaviors. Social media is a significant influence on purchasing decisions. Half of the Millennials and Generation Z respondents reported using social media while they shop. Facebook was the most popular social media platform in terms of time spent, followed by YouTube and Instagram (24 percent).

Amazon is preferred choice for online shopping. Amazon is the leading choice for online shopping. Seventy-nine percent of all respondents reported making purchases on Amazon in the last year. Approximately 66 percent of Millennials reported using the site at least once a month. Ebay, Groupon, and Apple were also popular websites.