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- Gen Z led holiday shopping, contributing to record sales of $41.1 billion online.
- Adobe Analytics reported a 10.2% increase in sales compared to last year.
- Many Gen Z shoppers face financial pressure, with some considering loans to manage debt.
SALT LAKE CITY — Many Americans didn't hold back their wallets during the biggest shopping week of the year.
Adobe Analytics reported $10.8 billion in sales, a 10.2% increase compared to last year's. Three days later, Cyber Monday hit a record $13.3 billion in online spending.
From Thanksgiving to Cyber Monday, $41.1 billion was spent online in the U.S.
Wesley Rebisz, a senior general manager at Westfield Garden State Plaza in Paramus, New Jersey, told Forbes that the foot traffic on Black Friday was the highest it had been since the pandemic.
"Gen Z really showed up to shop," Rebisz said. "They turned out very strongly in the morning and stayed the whole day."
Did Gen Z shoppers get the most bang for their buck?
Those in Generation Z — who are between the ages of 12 and 27 — with a credit card seemed unable to pass up a good deal. Ahead of the holiday shopping week, Statista reported the youngest adult generation was likely to outspend every other age group.
How much each generation was expected to buy:
Black Friday:
- Gen Z — Very likely: 44%. Rather likely: 30%.
- Millennial — Very likely: 36%. Rather likely: 21%.
- Gen X — Very likely: 24%. Rather likely: 20%.
- Baby Boomer — Very likely: 13%. Rather likely: 22%.
Cyber Monday:
- Gen Z — Very likely: 33%. Rather likely: 26%.
- Millennial — Very likely: 35%. Rather likely: 29%.
- Gen X — Very likely: 23%. Rather likely: 25%.
- Boomer — Very likely: 15%. Rather likely: 30%.
"Gen Z is driven by instant gratification, heavily influenced by social media, influencer culture and targeted ads. These factors create a sense of urgency and FOMO (fear of missing out), often prioritizing immediate rewards over long-term financial planning," David Robbins, a Gen Z behavioral expert and media analyst at EduBirdie, said in a statement via email.
EduBirdie surveyed 2,000 Gen Zers and found that 84% of them bought something on Black Friday, and 53% spent more than half of their monthly income on their purchases. Hopefully, the instant gratification of a new item lasts longer than the debt that follows.
As many as 87% of surveyors said they didn't regret their splurges, but 44% cannot rely on their next paycheck to cover the debt from Black Friday shopping. One in four plans to reduce spending on essentials to manage their budget, while 1 in 10 is contemplating taking out loans or borrowing money to pay off their shopping debt.
Deseret News asked a few Gen Zers how much they spent on Black Friday. Asked if she spent more than $300, London Piggott responded, "I'd say around that," but added, "I didn't really shop Black Friday." Another, Lizzy Kelshaw, said, "Not really. Maybe like 150 bucks."
According to the Edubirdie study, only 1 in 7 regret their purchases:
- 87% were happy with the "great deals" they got.
- 9% felt like they overspent.
- 4% said they felt "depressed" over the financial burden they'll now have.
"The financial pressure is clear: With one of the most expensive months of the year ahead, many are already in debt and cutting back on essentials to get by," Robbins added. "Gen Z needs the tools to spend smart without risking their financial stability, but in a world full of hot deals and 'you deserve it all' hype, finding a balance may take time."
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Emma Pitts
