With the holiday season in full swing, millennials are expected to play a significant role in this year’s shopping trends. In today’s episode of The Small Business Show, Charlie Wise, Senior Vice President and Head of Global Research and Consulting at TransUnion, joins us to discuss these trends.
TransUnion found in their Q4 2024 Consumer Pulse Study that despite the fact that inflation is still weighing on consumers’ minds, there’s still a lot of optimism going into the holiday season. The majority of shoppers anticipate spending just as much or more than last year.
Out of all the generations, millennials show the highest level of optimism regarding their household finances, with about two-thirds indicating that they would spend just as much or more than last year on their holiday expenses.
Wise attributes this optimism to a strong job market and wage growth that outpaced inflation in the past few years. However, he acknowledges that not all consumers feel the same, as some struggle. Nevertheless, the U.S. economy remains strong, reflected in consumers’ resilience and optimism nationwide.
Wise also highlights that technology has significantly impacted holiday shopping. Millennials typically opt for a hybrid approach, going to physical stores to research and then making the final purchase online. This approach allows them to thoroughly research products in person, and then streamline their experience and maximize the value of their purchase.
To stay ahead of the phenomenon, Wise advises small business owners to maintain an online and in-store presence to remain competitive. Businesses need to meet the consumers where they are and the best way to do so ifs by offering a seamless transition between browsing and buying across platforms.
Wise highlights that the power in the shopping experience has shifted from retailers to consumers. If consumers don’t find exactly what they’re looking for, they will quickly find it elsewhere.
Additionally, the balance of power in the shopping experience has shifted toward consumers. With countless options at their fingertips, today’s shoppers won’t hesitate to turn elsewhere if they can’t find what they need. Businesses must focus on personalization and convenience to remain competitive in the market.
"The consumer overall, even beyond holiday shopping, is feeling optimistic about their household finances." – Charlie Wise
