As the holiday season approaches, an insightful report sheds light on consumer behavior, particularly regarding Black Friday shopping. According to a recent survey conducted by AT&T Business, younger generations such as Generation Z and Millennials are demonstrating a more pronounced inclination towards shopping on Black Friday compared to their older counterparts. However, economic pressures are prompting these younger shoppers to be more deliberate in their spending habits, with many indicating plans to reduce their overall holiday expenditures.
| Article Subheadings |
|---|
| 1) Shift in Consumer Demographics |
| 2) Economic Impact on Spending |
| 3) Preferences for Local Shopping |
| 4) The Role of AI in Shopping |
| 5) The Future of Black Friday Shopping |
Shift in Consumer Demographics
The AT&T Business 2025 Holiday Shopping Survey, conducted by Morning Consult, reveals significant trends among young consumers regarding Black Friday shopping. The data indicates that 40% of Generation Z and 32% of Millennials intend to do their primary holiday shopping on this highly anticipated day. In contrast, older generations, including Gen X and Baby Boomers, are less inclined to shop on Black Friday, preferring to wait until just a week or two before Christmas. This generational divide signals a marked shift in shopping habits fueled by the pervasive influence of social media and targeted advertising.
Economic Impact on Spending
Despite their enthusiasm for Black Friday, younger shoppers express concerns regarding their spending. A report from consulting firm PwC highlights that Generation Z plans to spend an astonishing 23% less this holiday season compared to the previous year, marking the sharpest decline among all generations. This stands in stark contrast to their earlier intentions, where Gen Z indicated they would increase their spending by 37%. During these challenging times, many non-wealthy Americans are grappling with heightened prices and economic uncertainty, leading to indications of a “K-shaped” economy. Wealthier consumers continue to spend, while those with lower incomes tend to approach holiday shopping with more caution.
Preferences for Local Shopping
Consumer preferences are undergoing a notable transformation as a growing majority express a desire to support small businesses. The AT&T survey found that 77% of respondents would choose to do their holiday shopping at small businesses if given the choice between them and larger retailers at similar price points. This represents an 8 percentage-point increase in the number of consumers who prioritize small businesses to boost their local economies compared to last year.
“I think there’s a price consciousness out there, combined with a, ‘If I can still save money or get a good price, I will still shop local,’ type of mentality out there,”
remarked a representative from AT&T. This trend illustrates a consciousness among consumers about the economic impact of their purchasing decisions.
The Role of AI in Shopping
With the advancement of technology, particularly artificial intelligence (AI), many are curious about its influence on holiday shopping. Surprisingly, the survey revealed that more than half of shoppers prefer traditional online search methods over AI-assisted shopping for gift ideas this holiday season. Only 9% of respondents indicated a higher likelihood of utilizing AI for their gifting needs. As noted by an AT&T representative,
“AI has exploded over the last couple years, and it’s infiltrating all aspects of life.”
Although AI is likely to play an increasing role in future shopping trends, consumers remain rooted in familiar methods for now.
The Future of Black Friday Shopping
As Black Friday approaches, there is a sense of cautious optimism among retailers and consumers alike. A Deloitte survey indicates a general expectation for consumers to spend approximately 4% less during Black Friday compared to the previous year, driven primarily by financial constraints and the high cost of living. Nonetheless, AT&T’s Rutherford emphasizes a paradigm shift in holiday shopping, noting that consumers are becoming more “intentional and value-driven.” This change suggests that while overall spending may be restricted, it could lead to more informed purchasing decisions and a preference for deals rather than impulsive buys.
| No. | Key Points |
|---|---|
| 1 | Generation Z and Millennials are increasingly favoring Black Friday shopping compared to older generations. |
| 2 | Generation Z plans to reduce their spending this holiday season by 23%, a significant decline from previous years. |
| 3 | 77% of consumers would opt to support small businesses for holiday shopping if prices were comparable to large retailers. |
| 4 | Most shoppers still prefer traditional online shopping methods over AI for finding gifts. |
| 5 | Overall spending on Black Friday is expected to decline due to heightened financial concerns. |
Summary
The forthcoming holiday season reveals a complex landscape of consumer behavior, particularly as it relates to Black Friday shopping. With younger generations leading the charge, the dynamics of spending are shifting due to economic pressures and a growing commitment to supporting small businesses. As shoppers adopt a more discerning approach to expenditures, the role of technology, particularly AI, may evolve but remains secondary to established shopping habits for now. Ultimately, this season of giving may be marked by increased thoughtfulness and intention, reshaping the future of holiday shopping.
Frequently Asked Questions
Question: What percentage of Generation Z plans to shop on Black Friday?
According to the AT&T Business 2025 Holiday Shopping Survey, 40% of Generation Z members plan to do most of their holiday shopping on Black Friday.
Question: How does consumer spending this holiday season compare to last year?
This year, Generation Z plans to spend 23% less on average during the holiday season than they did last year, marking a significant decline in their spending patterns.
Question: What is the primary shopping method consumers prefer for gift ideas?
Most consumers, about 72%, reported that they prefer getting gift ideas through in-person shopping rather than using social media or AI methods.