Spending data shows Gen Z digs real stores

Economists say the holiday purchasing trends of Idaho’s Generation Z could reveal a fiscal gift that keeps on giving.

By sheer population and dollar amount, the Baby Boomers — both in the Gem State and nationwide — led in every significant statistical spending category over Thanksgiving weekend, fulfilling economists’ prophecies of a strong close to a strong year. But the young adults spearheading Gen Z — the term commonly describing those born between 1995 and now — have broken 2019’s mold by exceeding online sales predictions while also shopping happily in brick-and-mortar stores.

Thanksgiving Day’s boom of $4.2 billion in total online sales, per Adobe Analytics, spiked over 2018’s same-day figures by 14.5 percent but prompted concerns of a potential doldrum at brick-and-mortar retailers. While the online trend blossomed for Black Friday 2019 — where consumers broke records with a $7.4 billion one-day splurge — retailers reported better-than-expected numbers carrying into the weekend.

As Cyber Monday this year set the benchmark once again with $9.4 billion in online purchases, many economists waited for discouraging reports from in-store managers. By the time the last of the leftover turkey was vanquished, the final numbers gave good news to brick-and-mortar stores from coast to coast.

The trend of slumping in-person sales had finally been snapped.

While the days of record purchases between shoppers and cashiers might be a thing of the past, stores still took the lion’s share of overall dollars spent. The boom broke America’s in-store cold snap, as Black Friday sales jumped 4.2 percent, erasing three-year losses and ending nearly a decade-long streak of decline, all while foot traffic maintained an even keel compared to 2018.

In other words, roughly the same number of people walked through retailers’ doors this year but were far more willing to spend money than any other holiday season since the Great Recession.

“Early deals get some attention, but many consumers will wait for the real thing to get their holiday started,” said Marshal Cohen, chief industry advisor for the NPD Group, the analytics company that follows consumer trends. “Black Friday may not have the same bustle as it did 10 years ago, but it has retained its holiday spirit.”

So how does this data suggest the few qualifying adults in Generation Z — let alone Idaho’s Gen Z — could carry the torch forward in years to come?

UNiDAYS, a shopping app targeting college students, reported Idaho’s users — predominantly Gen Z — led the country in dollars spent per purchase at $569. The generation’s national average of $544 is significantly less overall than its Millennial, Gen X, Baby Boomers and Silent Generation predecessors, but those generations have both numbers and time.

Even though 27.7 percent of Americans are Gen Z overall, only 31 or 32 percent are adults, compared to the 100 percent of the latter four groups. This comes in concert with reports that the youngest generation is bucking Generation X and Millennial trends, opting for in-store purchases over smartphone clicks by both purchase price and cart quantity.

“It’s clear that when Gen Z students are given the opportunity to shop with deep discounts, they’re guaranteed to spend their money the most on fashion, lifestyle, and technology products,” UNiDAYS spokesperson Sarah Appelblatt said.

While the most senior adult to fall into the category is only 24 years old, and well more than half its population is under the age of 10, the up-and-coming age group appears willing to kick down doors to spend what money it has.