Black Friday is most popular with Gen Z

Black Friday Shopping Trends: A Shift in Consumer Behavior

As the holiday season approaches, a new report from AT&T Business, conducted by Morning Consult, reveals that Black Friday remains a highly anticipated event, particularly among younger consumers. Despite plans to reduce spending, 40% of Generation Z members and 32% of millennials intend to do most of their shopping on Black Friday. This enthusiasm can be attributed to the attractive pricing, offers, and advertising that flood social media during this time.

The survey’s findings suggest that older generations prefer to shop later in the season, typically a week or two before Christmas. However, the younger demographic’s enthusiasm for Black Friday is not without its contradictions. According to a report by consulting firm PwC, Gen Z shoppers plan to spend 23% less on average this holiday season than last year, marking the sharpest decline among all generations.

Economic Uncertainty and the “K-Shaped” Economy

The decline in spending can be attributed to the economic uncertainty and higher prices that non-wealthy Americans are facing. Some reports indicate a “K-shaped” economy, where wealthier consumers continue to spend more, while lower-income consumers adopt a more conservative approach to shopping. A Deloitte survey found that consumers plan to spend 4% less on Black Friday than they did last year, primarily due to financial constraints and a higher cost of living.

Despite these challenges, consumers are becoming more “intentional and value-driven” in their holiday shopping. This shift is reflected in the growing support for small businesses, with 77% of consumers reporting that they would do all their holiday shopping at small businesses if prices were comparable. Compared to last year, there has been an 8 percentage point increase in survey respondents who shop at small businesses to boost their local economies.

The Role of Technology in Holiday Shopping

The AT&T survey also explored the role of technology in holiday shopping, revealing that 72% of people get their gift ideas from in-person shopping rather than social media. While artificial intelligence is increasingly influencing the way people shop, more than half of shoppers prefer traditional online search methods for finding gifts, with only 9% opting for AI. As AI continues to evolve, it is likely that we will see a shift towards more AI-driven shopping experiences in the future.

As the holiday season unfolds, it will be interesting to see how these trends play out. One thing is certain – consumers are becoming more discerning and value-conscious in their shopping habits, and businesses will need to adapt to meet these changing demands. Whether it’s through attractive pricing, social media advertising, or support for local economies, the key to success lies in understanding the evolving needs and preferences of consumers.