A new survey revealed that consumers in the United States are going to challenge retailers as they evaluate where to shop this holiday season by looking for a variety of ways to fund their purchases, including credit cards and buy now, pay later loans.
In the survey conducted by researcher Censuswide for invoice and billing service Invoice Home, 37% of respondents said they believe buying gifts is more important than avoiding a credit card balance this season.
Consumers are concerned about prices this holiday season, with half of those surveyed by Invoice Home indicating they will not shop with a retailer if they confront overall increases in prices, versus 25% who said the same in 2024. Other reasons not to shop at retailers are an increase in cost to return merchandise, at 25% versus 11% in 2024; poor experience with the shipping carrier the retailer used, at 23% versus 11% in 2024; and poor communication from a retailer around delayed shipping, at 22% versus 10% in 2024.
A quarter of respondents said they plan to use buy now, pay later (BNPL) services to navigate holiday spending this year, and 16% said they will also use ChatGPT/AI to help them shop effectively. Gen Z, at 20%, and Millennials, at 19%, are the most apt to lean heavily into BNLP, with Gen Z, at 20%, and Millennials, at 19%, considering using it as a top way to buy gifts. Millennials are also particularly willing to go into credit card debt this year, at 27% versus 21% in 2024. For their part, Gen Zers are also especially likely to dip into savings this year, with 40% willing to do so.
Decisions won’t necessarily be made based on straight-up discounts alone. If a brand or business isn’t offering a discount at holiday shopping time, 42% of consumers responding to the survey would still feel incentivized to buy if free shipping/returns is offered, while 34% would look favorably on loyalty points as a reason to complete a purchase, 28% would look kindly on a gift with purchase, and 19% would take solace from the promise of a discount code for the next order.
As to retailers, 47% of respondents anticipated doing most of their holiday spending with Amazon, and 32% with big box retailers such as Walmart and Target. A quarter of consumers surveyed by Invoice Home reported they will focus holiday spending on Black Friday/Cyber Monday.
If prices continue to increase due to inflation or other factors, GenZers and Millennials will consider various ways to hold on to cash, including:
- Not travelling, for 46% of Gen Zers and 30% of Millennials
- Buying thrift gifts, for 38% of Gen Zers and 26% of Millennials
- Pushing seasonal celebrations to post-holiday 2026, when less expensive options are available, for 16% of Gen Zers and 16% of Millennials.
However, 30% of Gen Zers and 27% of Millennials are considering opting out of gifting.
“This data shows that consumers aren’t shifting away from spending but being strategic in how they spend and in how they’ll afford the season,” said Petr Marek, Invoice Home co-founder and CEO. “With rising costs being out of many businesses’ controls, now is the time to ensure your customer experience is flawless from the moment they begin interacting with you. Look for avenues to connect with your customer, like providing financing options or suggesting alternate products to ones that aren’t available or out of their price range. Small acts like this can be the difference between a sale and moving onto your competitor.”
Conducted by third-party research firm Censuswide for Invoice Home, the annual holiday spending survey included responses from 2,000 U.S. consumers aged 18 and over.
