PwC: Gen Z Plans to Spend 23 Percent Less On Holiday Purchases

"Data from consulting firm PwC found that Gen Zers plan to spend 23 percent less on holiday this year than they did in 2024. As a point of comparison, in 2024, the same demographic said they planned to spend 37 percent more than they did in 2023. Gen Z 's hesitancy around holiday is influencing at-large consumer spend expectations for holiday."

"PwC projects a 5 percent decline in overall average consumer spend, led largely by Gen Z; millennials said they planned to decrease spending by 1 percent, and Baby Boomers plan to spend 5 percent more than they did in 2024. The firm believes the average consumer spend for holiday will fall at about $1,552 per person."

"Retailers need to understand not just what consumers do, but what they aspire to," Furman said. "I don't think retailers are moving fast enough, particularly for Gen Zers and Gen Alphas that are looking for social to shelf. They should focus on creating categories around unmet needs. It's just this moment where retailers need to fundamentally reimagine how their company connects with consumers."

Consulting firm PwC data show Gen Z intends to spend 23 percent less on holiday this year versus 2024, after previously indicating a large planned increase. That pullback is expected to drive a roughly 5 percent decline in overall average holiday consumer spend, with millennials down 1 percent and Baby Boomers up 5 percent. The projected average holiday spend is about $1,552 per person. Gen Z uses social media for gift discovery as often as search engines, creating a "social to shelf" effect that many retailers are not equipped to respond to rapidly. Retailers are urged to rethink category creation and connections to younger consumers.

Read at Sourcing Journal