Generation Z continues its emergence as a primary consumer segment, and, as the group approaches the holidays, it is demonstrating some distinct preferences that can translate to opportunity.

Although sources differ slightly, Gen Z consumers range from 11 to 26 today. Because many are minors, market research often focuses on those 18 to 26, which is likely to reflect most of the younger echelon’s preferences.

At the same time, because they are in a similar life stage, some market research focuses on older Gen Zers and younger Millennials ages 18 to 34. As such, some ambiguity exists in market research derived from Gen Zers, but in general, the numbers suggest Gen Z has been heavily influenced by certain specific events that mark its development on the consumer front.

Gen Z has grown into an essential group of housewares consumers. In the HomePage News 2023 Consumer Outlook Survey published early this year, young adults aged 18 to 34 were the most enthusiastic about purchasing from almost every housewares category examined. The group, comprising older Gen Zers and younger Millennials, consists of consumers starting out and setting themselves up to live independently. That makes them natural home product shoppers.

However, when divided strictly by generation, the Gen Z group tied and exceeded Millennials in their expectation to purchase housewares across multiple categories. In the study, Gen Z tied or edged out Millennials in anticipation of buying drinkware, flatware, kitchen electrics, home storage and organization, home environment, cleaning tools, floor care electrics, luggage and travel accessories, pet accessories, and, by several points, personal care. Whether this suggests a greater affinity for home cooking or entertaining, the result at least provides evidence that Gen Zers are home-conscious and willing to spend on products they can use in the domestic space.

The 2023 IHA Occasions Report published by HomePage News in late 2022 looks at life events and potential housewares purchases associated with them. Millennials tended to be the group looking forward to the most life events in 2023, from leaving for college through to retirement, including marrying and new home ownership. However, Gen Zers were usually close behind and ahead of older echelons. Gen Zers and Millennials anticipated life events upcoming for themselves and their immediate circle of family and friends. In both cases, Millennials tended to have more happenings lined up except where age might make Gen Z more prominent, as in the case of purchasing for their own moves to college.

When it came to purchasing housewares gifts for occasions, Gen Z was a solid second to Millennials throughout the study. Gen Zers edged out Millennials in the likelihood of purchasing a housewarming gift, although Millennials beat Gen Zers when it came to gifts for those leaving for college.

Shopping for major life events is different than doing so for holidays, but one thing that comes out of the two HomePage News reports is that Gen Z is the consumer demographic looking ahead to making housewares purchases throughout this year, certainly more so than Gen Xers and Baby Boomers. Retailers and vendors should be taking Gen Zers seriously in the holiday sales period in terms of products provided and outreach.

Millennial youths were rocked by the Great Recession. That made them somewhat wary of economic institutions and caused them in many cases to enter life stages such as marriage and first home purchases later than might have been expected originally. Gen Z also has grown up under the influence of the COVID-19 pandemic and a more acute concern about environmental change as well as such social issues as equity.

Gen Z also is the first truly digital generation. Unlike Baby Boomers, Gen Xers and even some Millennials, online shopping was never a new revelation for Gen Zers.

As Gen Zers have emerged as consumers, the holiday shopping season has been evolving from its traditional timing. Amazon and then its rivals began launching major October sales events, accelerating an expansion of the holiday shopping season from the traditional Thanksgiving Weekend to Christmas period.

Marsha Everton, principal and founder at the Aimsights Group, a market research company that focuses on Millennials and Gen Zers, told HomePage News that, when it comes to shopping, Gen Zers like the experience of shopping in physical stores.

“It’s all about the experience,” Everton said. “And they are very discriminating and demanding about that experience. They want ‘unique” more than brand.”

In outreach to Gen Z consumers, Everton pointed out, TikTok is “huge. It’s the search engine of choice, displacing Google as the number one search engine in that age cohort.”

Still, although TikTok has become a pervasive influence, social media doesn’t dictate Gen Zer choices.

“Family and friends are still the most important influence on buying a product or brand, actually an even greater influence than we see in other generations/age groups,” Everton said. “For all of the media hype about their online habits, they are very relationship-driven and trust advice from people they know more than general online information.”

Research from Morning Consult indicated far more Gen Zers began their holiday shopping early compared to last year: 34% started late August 2023 versus 21% in 2022, a swing that contributed to shifts in fulfillment channel usage for early orders. Across the early shopping period, Gen Zers edged out Millennials as the top group of early shoppers, with 33% getting a jump on the season versus 28% a year earlier, according to Morning Consult. Gen Xers and Baby Boomers fell back concerning early shopping, with only 21% of each shopping by late August. Although many analysts hypothesize earlier shopping follows the desire to take advantage of retail sales and spread out holiday expenses, Morning Consult asserted its data indicates the opposite: Early shoppers are splurging, not trying to save.

In the Morning Consult research, only Gen Zers, at 6%, plan to spend more on decor for the 2023 holiday season.

Whether Gen Z consumers can sustain the early shopping pace through the holidays is an open question, the Morning Consult opined, but Gen Zers are out in front early and just might stay there.

The disruption and lengthening of traditional holiday shopping seems to be taking particular hold with Gen Z, which may also be true of Millennials. According to market research from shopping rewards app ShopKick, 40% of Gen Xers and 38% of Baby Boomers planned to shop on Black Friday, while only 18% of Millennials and 3% of Gen Zers expressed an intention to do so. The results in this year’s study contrasted sharply with the study conducted by ShopKick a year earlier. Then, 56% of Gen Z and half of Millennials planned to shop on Black Friday, a more significant proportion than the 44% of Gen Xers and Baby Boomers and 36% of the Silent Generation.

Bargain hunting isn’t the only factor driving Gen Z holiday shopping. In a recent study by market researcher Mintel, 48% of winter holiday shoppers said they might consider looking for pre-owned gifts. However, the proportion increased to 68% with GenZ consumers ages 18-24. The number of consumers planning to shop for the holidays in secondhand retailers grew eight percentage points in the study year-over-year, with 23% of Gen Z and Millennials planning on doing so.

In the fight for Gen Z dollars, as Everton of Aimsights pointed out, it’s critical to understand the importance of TikTok. According to Tinuiti Research, 35% of Gen Z consumers point to TikTok as the social media where they discover new products, followed by 18% on Instagram and 10% on Facebook. In contrast, Baby Boomers’ discovery is 3% TikTok, 5% Instagram and 25% Facebook.

When considering which major retailer Gen Zers prefer to start consumer product searches, in a bit of a surprise, 27% say Walmart, followed by Amazon (26%) and Target (12%). That contrasts with Baby Boomer search-beginning preferences of 29% for Amazon, 26% for Walmart and 4% for Target.

In other research, ICSC stated that 47% of Gen Zers will support brands that show concern about sustainability and an equal proportion on equity progress.

Gen Z might be pulling other generations along in their consideration of sustainability and social issues. In a First Insight study, Gen Zers were most likely to say they would spend more for sustainable products in 2019, at 73%. However, in 2021, Gen Z had slipped marginally in its willingness, down two points. Millennial willingness advanced to 72% from 68%, and Gen X willingness advanced to 78% from 55%. First Insight credited much of the change in the older generations’ purchasing to the influence of Gen Z.

Retail Development

Many retailers are introducing or touting AI-supported shopping initiatives ahead of the holiday season. For example, Newegg Commerce, a retailer heavily focused on younger consumers, has updated its consumer-facing AI use by launching summarized customer reviews generated via artificial intelligence, it announced in August. A month earlier, Newegg introduced an AI-based approach to housewares and home furnishing that organized shopping around a virtual home with rooms linked to product assortments. This summer, Wayfair introduced Decorify, which employs AI-enhanced technology to help consumers virtually remodel their home spaces before purchasing the products.

In those cases, the retailers are adding experiential elements that research has deemed important to Gen Zers. That points to an engagement trend, making functional elements more attractive to consumers who have grown up with video games and social media.

The gamification of shopping is an emerging, if not yet a thoroughly embraced, retail trend that also has ramifications for vendors working both with retailers and as part of the direct-to-consumer development. According to market research and advisory firm Mordor Intelligence, the gamification of retail has created a service market including players such as Microsoft and SAP, reaching $57.99 billion, which it suggests will grow slowly through 2028 to 58.7 billion in 2028. Although the compound annual growth rate is just .25%, as the market research and advisory firm sees it, artificial intelligence and machine learning are critical elements in gamification. Since the marketplace is only beginning to work through the opportunities those technologies offer, gamification could gain faster, particularly among consumers who grew up with video games. It also might help solve some of the navigational shortcomings of mobile device navigation and search originally adopted from algorithms developed for PCs.

Talon One, a promotion and loyalty software provider, pointed out that elements making shopping more of an experience through gaming and game-like features are already in use by a range of companies. For example, food delivery company Wolt includes a simple mini-game in its app: If Wolt users tap the app’s delivery timer, they receive a hidden game challenging them to tap as many times as they can within five seconds. If they beat the Wolt team’s score, they win a Wolt coupon.

It’s noteworthy that this approach has been gaining in physical retail environments. As long as four years ago, T.J. Maxx launched and awareness campaign featuring gamified pop-ups in six different locations in New York and Los Angeles. Each featured a selection of products curated by a group of six celebrities and influencers. Consumers could win the contents of each installation by correctly guessing the combined value of the products on display, posting their guesses under Instagram videos from T.J. Maxx or tagging them using the #maxximizing hashtag.

Ghost Retail, which works with companies on livestreaming, personal shopping and shoppable video, has pointed out that loyalty programs are among the areas where retailers explore basic forms of gamification, including point and badge systems, that reward consumers for specific behaviors. The company noted how Sephora awards customers points for their purchases, which can be redeemed for rewards like free products or exclusive experiences. The program incentivizes customers to make more purchases and creates a sense of exclusivity and community among Sephora’s loyal customers, the company stated.

Gen Z shoppers are known for being tech-savvy, social media-adept and highly competitive. They value experiences over possessions, and they also are more likely to make a purchase if they feel like they are getting a good deal. Any game offered should be easy to access, enjoyable in use and provide value to the Gen Z shopper, Ghost Retail said.

As the generation that grew up with the Internet and online shopping, Gen Zers aren’t shy about embracing new technological approaches to shopping.

According to recent consumer research by e-commerce technology company Rokt and the Harris Poll, 89% of Gen Zers globally think AI can improve online shopping. In the research, 55% of Gen Z respondents said they were interested in an AI assistant that would make online shopping more convenient by simplifying product discovery and anticipating their needs and preferences. Moreover, 51% of Gen Zers say they are interested in augmented reality and virtual reality shopping experiences. Walmart and West Elm have recognized that in its work with Roblox. Amazon has a Prime Video initiative linked to its superhero high school series with the evocative title “Gen V.”

Gen Zers identified the top five areas in which they expect AI will improve online shopping: help with comparing prices, cited by 47%; finding deals, at 45%;  receiving relevant offers and product suggestions, at 41%;  receiving personalized assistance, at 37%; and finding reviews at 28%.

Timing

A poll conducted at the beginning of this expanded holiday shopping season from e-commerce platform runner Shopify and Gallup identified consumers 18 to 29, mostly Gen Zers with a few younger Millennials included, as having the most robust spending intentions among generations studied and the greatest willingness to spend early for discounts.

Gen Z has grown up with the expansion of the holiday shopping season. Although Baby Boomers and even older consumers might still see shopping for Christmas in August as odd, Gen Zers see it as more natural.

In the survey, Gen Z consumers were most enthusiastic about holiday deals, saying they would probably or definitely start shopping back in the calendar if retailers rolled out seasonal deals and promotions before the traditional November to December shopping period. Shopify and Gallup called on retailers to make better use of earlier holiday deals specifically to cater to younger consumers. In the survey, 48% of the 18-to-29-year-olds said they could be attracted to earlier holiday discounts, well over the 28% average across all age groups. Shopify and Gallup affirmed younger consumers are ready to shop, with 37% saying they would spend more this year, almost double the average sentiment among all groups polled.

As an operation that’s focused on celebration, The Knot Worldwide has published its first-ever Future of Marriage Report, including trends from a study of more than 1,000 single or dating Millennial and Gen Zers in the United States.

The report concluded that the majority of Gen Zers believe marriage is important in modern society with only 8% believing that marriage is outdated.

The top three words that come to mind when Gen Z thinks of marriage are commitment, at 68%, happiness, at 58%, and forever, at 53%.

When it comes to nuptial consideration, 81% of Gen Zers said they are open to the possibility of getting married, with half saying they definitely see it happening.

When asked about what age they see themselves getting married, 62% of Gen Zers said their late 20s to early 30s, with the average age being 28.

In big-date terms, 72% of Gen Zers look forward to their wedding day and 78% of Gen Z respondents have already taken at least one action related to planning a wedding, even more than Millennials, at 60%. Indeed, Gen Zers have most commonly envisioned what their own wedding might look like, at 51%, and have saved ideas and inspiration, at 32%, and looked up costs, at 32%, for the occasion.

Nine in 10 of Gen Z study respondents who saw themselves getting married in the future plan to put together a wedding reception. Among Gen Zers who said they were unsure about whether they wanted to legally get married, 49% said they still wanted a party to honor their relationship.

Then, 43% of Gen Zers said they would have attended at least one wedding by the end of 2023, and, of those, 76% stated that they are looking forward to it.

About half of Gen Z respondents to the Knot study thought of wedding celebrations as being expensive, but 58% say their wedding is part of long-term financial goals and 66% agree that their wedding day is or will be worth the financial investment.

“There’s a common misconception that younger people don’t believe in marriage, but we’re seeing that the next generation of couples is looking forward to getting married and commemorating their love in a way that’s authentic to them,” said Tim Chi, Knot Worldwide CEO. “Gen Z has proven to be a force for change, and I’m inspired by the way they’re reimagining traditions. Instead of marrying out of necessity or social pressure, many younger people are choosing a partner who complements or shares their values. I think this evolution will lead to a golden age of marriage, in which we will see more long-lasting and secure relationships, focused on celebrating the most important moments.”

A study by creator retailing platform LTK reveals 38% of consumers plan to start holiday shopping in September, a 25% increase from last year.

Shoppers who look to creators for inspiration also plan to shop earlier this year, LTK noted, with 45% intending to start in September.

Although consumers still have economic concerns, LTK observed, shoppers don’t seem to be slowing their spending abruptly, with the majority planning to spend more or the same this year on holiday gifts for others, home decor and self-gifting compared to the year earlier.

Still, for this year’s holiday season, 42% of consumers plan to save money by tapping Black Friday and Cyber Monday sales, up 35% from the year before, according to the LTK study.

In 2023, entertainment-focused gifts such as music, books and games are the top picks among the general population, Gen Z and Millennials, LTK reported. Fashion items are preferred gifts to give among the general population and Millennials. However, Gen Zers lean towards gifting beauty products. In reference to its retail segment, LTK pointed 78% of Gen Z women rank creators as their top source for beauty recommendations. Overall, when it comes to self-gifting, beauty products were tops across age groups.

The LTK study revealed consumers who regularly shop from creators plan to spend more across all categories. As such, 86% of shoppers who turn to LTK creators plan to spend more or the same on gifts year over year, almost 10% more than the general population. In 2022, the company saw a 10% increase in sales per LTK app shopper, the company reported, and results from the first half of 2023 suggest a similar trajectory for this year’s holiday season.

Although consumers in general are more value-conscious these days, LTK shoppers don’t make price their particular priority, the company asserted. The study found LTK shoppers rank quality as the top factor when holiday shopping, with brand, availability and convenience all ranking above price. Still, 62% of LTK shoppers plan to take advantage of Black Friday and Cyber Monday sales.

The study indicated creators are now the most trusted source of holiday shopping inspiration for Gen Z and Millennials, surpassing social media ads and celebrities. LTK this year experienced a 32% increase in Millennial shoppers choosing creators as their go-to source for the holidays, the company indicated, adding its creator sellers drove more than $4 billion in annual retail sales. As of now, 73% of Gen Zers, 69% of Millennials and 57% of the general population have made purchases from creators, LTK reported.

Creators influence a variety of holiday behaviors for those consumers who favor shopping from them, whether gift purchasing, holiday cooking and expressing family traditions. LTK found nine in 10 shoppers who rely on LTK creators for holiday inspiration have purchased a gift based on their recommendations.

Cloudinary, an image and video platform, released the results of its first global e-commerce survey. demonstrating that effectively deploying images and videos to target consumers can slash product returns by up to a third, potentially saving retailers billions of dollars each year, and engaging the interest of consumers, especially younger consumers.

In addition, the survey suggested that every generation relies on reviews to make buying decisions but that younger consumers, who are more likely to shop online frequently, rely on visual and social media testimonials as their final purchase test.

The criteria for what makes great shopping experiences online – which generate higher conversation rates – varies by age group. The top three Gen Z criteria were user reviews with images, at 63%, text-only reviews, at 62%, and detailed product galleries, at 52%. In contrast, Silent Generation consumers’ most valued a detailed product gallery, at 67%, text-only reviews, at 60%, and branded product videos, at 28%.

Overall, according to the survey, the top five factors consumers consider when researching potential purchases are product reviews, at 81%, product pages on retailer websites, at 56%, conversations with friends, at 50%, videos from real customers showing products in use, at 37%, and brand videos, at 27%. Both Generation Z, at 73%, and Millennials, at 74%, primarily shop online using their smartphones. Gen Z is the most likely demographic to shop a brand’s app, at 26%. In contrast, Baby Boomers, at 64%, and the Silent Generation, at 71%, shop online mainly from desktop PCs. Only 52% of shoppers said that they bought a product from a brand they didn’t know, but 47% said they did so because the product page had user images to review.

“Highly visual and informative online shopping experiences are table stakes for retailers today,” said Genevieve Haldeman, vp of corporate marketing, Cloudinary, in introducing the survey. “In order to engage their buyers, brands need to offer innovative and immersive experiences while also delivering exceptional performance, regardless of the channel shoppers choose. Effective use of user-generated image and video content along with innovations like 3D, 360 images and augmented reality applications will help those brands better capture the next generation of shoppers while also improving conversion and reducing returns.”

The survey tapped 2,693 consumers across Australia, Germany, the United Kingdom and the United States. 

Euromonitor’s Nick Stene, during an Innovation Theater presentation at The Inspired Home Show 2023, said consumers are waiting for the next big shock, but they are also looking for reliability. As such, consumers are prepared for the worst but looking over the horizon for something better. And it’s not much different with business.

“Reliability is what they are seeking,” said Stene (pictured above), Euromonitor’s global head of home and garden.

The session explored “Decision Making When Instability Is the Only Constant.” Stene and Catalina Flores, Euromonitor’s senior analyst, home and technology focused on the United States and Canada, looked at big-picture developments and those that have a specific effect on home goods.

Stene noted that the effects of the pandemic, inflation, geopolitical instability, rickety supply chains and related disruptions have made figuring out where things are going much more difficult. Even pricing, which many companies felt as if they had it down to a science pre-pandemic, has been scrambled as companies have tried to roll with inflation and sometimes waited too long to raise prices with the result of undermining their own bottom lines, sometimes to a dangerous degree.

He said even in the forecasting sector, using the past to provide guidance for the future, has become a less reliable model. Much of the past has been buried under the present. “Just in time” is dead, he said, replaced by “just in case” as companies recognize that they have to make a commitment to ensure product keeps moving to consumers even when logistics systems falter. As such, we live in an era of constant vigilance during which companies and consumers are becoming more flexible in their thinking and willingness to make changes to meet sudden shifts in their financial situations.

Flores said amid uncertainty, Euromonitor expects home categories to normalize over the coming months. Food storage and hydration are among those housewares categories that benefited from the pandemic than the return to work, as people wanted to have their own food and drink available for wellness reasons. Saving on food and spending less on restaurants will continue as inflation remains an issue that impacts consumer bank accounts and general thinking about how they should use their money.

In that environment, opportunities exist to drive sales in, for example, products that make cooking faster and easier. Although they learned to cook or expanded their skills, consumers don’t want to spend more time than necessary on the task, even if they are looking for advanced results. So, products that make gourmet or near-gourmet quality food faster and easier are likely to see consumer approval. Non-stick products, for example, win favor because they’re easier to use and less of a cleanup chore.

Flores added that climate change is an issue that all businesses will have to address, particularly as Gen Zers make it a particular issue and even more so than Millennials. Second-hand shopping is becoming more important with more consumers looking to purchase refurbished housewares. As for Millennials, she emphasizes that they shop online more regularly than any other demographic group. So, businesses that make home-related products and who want to target Millennials should be creating products backed by selling initiatives that address their needs. That’s especially the case with products that make life easier for busy young householders and parents, the Euromonitor team concluded.

The Knot 2022 Real Weddings Study revealed 2022 saw 2.6 million couples getting married; Gen Zers want unique elements added to their nuptials; and those planning to get hitched in 2023 are concerned about how the economy might affect their planning.

The Knot surveyed 12,000 couples married in 2022 to provide a comprehensive look at how weddings unfolded as well as emerging trends among Gen Zers getting hitched.

Although new wedding elements are appearing, tradition remains strong as regards trends:

• 91% of receptions featured first dance
• 90% of couples included at least one that wore white
• 84% of engaged couples set up a wedding registry
• 83% of wedding days ran as ceremony, cocktail hour, reception
• 80% of receptions slated a father-daughter and/or mother-son dance
• 78% of nuptials were preceded by a rehearsal dinner
• 76% of couples had one person changing their last name to their partner’s
• 74% of receptions had a cake-cutting ceremony
• 70% of weddings worked in something old, new, borrowed and blue
• 68% of couples established specific table assignments for guests

In what The Knot referred to as a return to normalcy, only 7% of respondents to The Knot’s survey said the COVID-19 pandemic impacted their wedding dates, down from 27% in 2021. Although 25%of those surveyed continued to offer hand sanitizer to guests, highest among couples married in early 2022 at 39%, other health and safety measures dropped significantly.

Average guest size in 2022 was 117 as compared to 105 in 2021, 66 in 2020 and 131 in 2019. Cost per guest was $256 in 2022 versus $266 in 2021, $244 in 2020 and $214 in 2019. Total cost of a ceremony and reception was $30,000 in 2022, versus 28,000 in 2021, $19,000 in 2020 and $28,000 in 2019.

The average engagement length in 2022 was 15 months, though 13% of couples were engaged two years or longer, which would get into the pandemic period. December was the top engagement month as 15% of couples opted to celebrate the milestone with their loved ones already gathering for the holidays.

With personally crafted proposals popular, 58% of survey respondents said they felt pressure to plan a unique proposal, and roughly half planned their proposal one to three months in advance compared to 31% in 2017.

Couples’ top challenges during the wedding planning process include budgeting, at 47%, and determining the guest list, at 36%. On average, couples themselves paid for 49% of the wedding costs, though older Gen X adults, at 81%, and those identifying as LGBTQ+, at 56%, shoulder a greater proportion of costs. Couples are most likely to pay for their portion by tapping into their checking account, at 57%, or paying cash along the way, at 54%, through credit cards, at 39%, and money gifted via wedding gifts/registry, at 28%.  Couples turn to various resources to plan, especially friends/family, at 73%, and wedding planning websites, also at 73%. Then 68% tap Pinterest, most often for inspiration, and 29% hire a wedding planner.

The internet is playing a bigger role in nuptials planning, as 90% of couples created a wedding website to share with guests; 77% followed wedding vendors on social media; 64% used a wedding planning app; 52% video chatted with wedding guests; 45% watched online videos for wedding planning ideas and inspirations; 32% used online chats with vendors or others as they planned; and 13% took a virtual tour of wedding venues.

As for Gen Zers, they’re more likely to have their engagements photographed than other demographics, at 89%, versus 79% for Millennials. Gen Zers rate photos and videos as the most important part of the wedding day, 83% versus 76% of Millennials. Gen Z couples also welcome opportunities to incorporate cultural elements, with about 40% of such couples including ethnic, religious and/or cultural elements into their wedding, such as jumping the broom, compared to 32% of Millennials do the same. Gen Zers are incorporating vibrant and unconventional colors into their weddings, with green especially popular with 56% saying the color was an element in their nuptials decor. 

As for 2023, based on research conducted in January, the Knot maintained that 61% of couples who are set to wed this year say the economy has already impacted their wedding planning. Some 49% specifically cite inflation/rising costs as a top concern.

Executives surveyed by business services provider Deloitte expect inflation to pressure their profit margins in 2023 as six in 10 anticipate inflation raising their operating costs even as other issues, particularly labor loom over the year ahead.

Many retailers face difficult year-over-year comparisons as nesting has become less prevalent since COVID-19 pandemic stay-at-home guidance has eased, bringing an end to strong durable goods sales, Deloitte stated. Also, retailers that benefited from government stimuli and consumers returning to work and school are now getting less of a lift from those inputs, and are left forecasting and providing guidance based on trends that are difficult to decipher, whether structural or episodic.

In 2023, Deloitte pointed out, retailers will also have to deal with rising organized retail theft, more attention paid to ESG and the tight labor market, which seven in 10 polled retail executives said was their biggest concern heading into the new year.

But the retail outlook is not all gloom and doom, Deloitte noted, as retailers have learned about resiliency in the past few years. Demand fluctuation during the pandemic forced retailers to rethink archaic systems in favor of more flexible operating structures including more advanced omnichannel capabilities, Deloitte observed. And they learned that rapidly evolving consumer preferences require more effective analytics and forecasting tools to sustain and build loyalty. 

Deloitte asserted that retail executives should lean into innovations and practices established during the pandemic to gain traction in 2023 by driving profit through curated experiences, providing last-mile options, and emphasizing conveniences they rolled out even as they consider where to tighten purse strings.

Retailers also need to consider the evolving state of consumer connections. According to Deloitte, the majority of retail executives contend that strengthening digital commerce offerings can generate growth opportunities as most expect consumers to make direct purchases on social media platforms in 2023. Under those circumstances, social influencers may represent an opportunity to acquire micro-segmented consumers as demographic changes lead to new, often quite specific needs, desires and preferences. Digitally native generations are gaining more purchasing power and showing up in significant ways on social commerce: In Deloitte research last year, 60% of Gen Z and 56% of Millennials said they planned to use social media in their 2022 holiday shopping.

As summer winds down, LTK, a global influencer marketing platform, released a new study of consumers in the United States, its Holiday Shopping Predictions Report, which determined that consumers are shifting their holiday shopping plans under the influence of inflation to save dollars and to invest in self-care and their homes.

When it comes to choices, 96% of consumers plan to shop online, according to the survey, with 53% saying they plan to do the majority of their purchasing digitally. In addition, LTK noted, 86% of consumers plan to shop from their phones. Indeed, almost half of Millennials plan to do the majority of their shopping on their phones.

In the ongoing shift in shopping behavior, 72% of consumers said their shopping originates from social media, a figure that’s higher for Millennials, at 81%, and Gen Zers, at 83%. Further, 45% of Millennials and 42% of Gen Zers said they shop in-store based on recommendations from online content creators and influencers.

More than half of shoppers intend to spend the same or more on holiday 2022 versus the year-earlier period, according to the study, intending on gift purchases of clothing and accessories, at 26%, candy/food/gift baskets, at 24%, toys, at 23%, and electronics, at 21%. However, as noted, shoppers are putting some emphasis on self-care and their homes after a stressful year, with 61% anticipating spending more or the same on shopping for themselves and their households for holiday 2022. In buying for themselves, consumers ranked beauty/personal care items first, at 32%, followed by electronics, candy/food and beer, wine and spirits. In terms of readying their homes for the holidays, the top planned purchase categories for consumers are candles, decor and electronics.

The COVID-19 pandemic is no longer a major reason to shop online for consumers in the United States, according to market research from Pitney Bowes Boxpoll.

In the research, 56% of participants said their motivation for buying online had changed since the pandemic peak.

The top reason to shop online in the study was that “shopping online saves me a trip to the store and I don’t mind waiting for delivery.” For all consumers, the answer was given by 43% of participants in the study. In regard to generations, Boomers, at 50%, were most likely to give that as a reason to shop online while, at 36%, Gen Zers were the least likely to do so.

“I can find better deals online than in-store” was the next most likely answer, at 36%, with Gen Zers and Gen Xers tied at 40% at the top and Boomers last at 32% in providing that answer. In the third position was the answer “I have a bigger product selection online,” at 29%, with 32% of Gen Xers so saying in the top slot and Gen Zers and Millennials, at 27%, tied for last.

“I am worried about being exposed to COVID in brick and mortar stores” was the seventh most cited reason for shopping online, as 15% of study participants answered that way, with 18% of Millennials emerging as the most likely and 7% of Gen Zers as the least likely to say so.

The number four, five and six reasons for shopping digitally were “searching for unique products only found online”, “more enjoyable” and “not liking to be around other people.” Eight and nine were “difficulty getting to a physical store” and “fear of physical safety in brick and mortar stores.”

Pitney Bowes asked participants to provide their top three reasons for shopping online at a retailer other than Amazon. HomePage News inquired about the Amazon exception but did not get an immediate response from Pitney Bowes.

In a holiday that will be closely watched as an economic gauge, market researcher Numerator stated that, while most consumers plan to celebrate Independence Day, the majority of celebrants expect at least a moderate inflation impact to spend less, purchase items on sale and focus cutbacks on dining out and fireworks.

Respondents to a Numerator survey reported that they intend to cut back on spending and travel and spending due to inflation with 39% planning to buy fewer items this 4th of July than in previous years and 27% traveling, as gas prices weighed especially among those who might otherwise hit the road.

The majority of consumers, 64%, will spend less than $100 this Independence Day although 28% plan to spend more than  $100, with Gen X having the biggest spending intention.

In addition:

• 62% of celebrants said they would purchase items on sale to save on their shopping.
• 37% plan to prepare more budget-friendly snacks and meals.
• 36% will use coupons.
• 26% will switch to private label/store brands.
• 25% will shop at dollar or discount stores. 
• 29% will cut back on dining out and fireworks.
• 25% will purchase less meat or seafood
• 24% will spend less on holiday decorations. 

Grilling remains the most planned activity, with 60% of consumers planning to grill, while 53% plan to gather with family and friends. Both activities lost celebrants as compared to last year, down five points and 12 points, respectively.

Consumers mostly plan to hit the bricks and mortar for Independence Day, at 88% with 68% expecting to shop in-store at a grocery store, 47% at a mass merchant or big box store, 32% at a club store.  

Among those intending digital purchases, younger generations prefer Costco.com and Target.com. Gen Z is more than twice as likely to shop at Costco.com, and Millennials are 33% more likely to shop at Target.com.

Generations plan to celebrate differently as Millennials are more likely to attend or host an Independence Day party, with an Index 112 versus the 100 index baseline for all consumers. Gen Xers are more likely to go out for food or drinks, index 113, and Boomers and other older consumers intend to gather with family and friends, index 109. 

Almost all celebrators, at 95%, plan to purchase something for the holiday, including snacks, at 60%, meat & seafood, at 56%, fruits & vegetables at 45%, and side dishes at 45%. 

In addition, 45% of celebrants plan to purchase alcoholic beverages with beer as the top choice across all age groups.