The Rise of Gen Z's Black Friday Fever: A Paradox Unveiled
In a surprising twist, Black Friday, a shopping extravaganza that has long been a staple of the holiday season, is experiencing a surge in popularity among Gen Z, even as it loses its allure for older generations. This revelation comes from a recent survey conducted by AT&T Business and Morning Consult, exclusively shared with CNBC.
The survey findings paint a fascinating picture: while 40% of Gen Z members and 32% of millennials plan to make Black Friday their primary shopping day, older generations prefer a more relaxed approach, opting to shop just a week or two before Christmas. This preference for later shopping could be attributed to a variety of factors, including a desire to avoid the crowds and the stress of early-season shopping.
"Black Friday is a phenomenon, and the deals and advertising during this period are hard to resist, especially for Gen Z, who are heavily influenced by social media," explains Angela Rutherford, AT&T's vice president of mid-market sales. But here's where it gets controversial: Gen Z's enthusiasm for Black Friday persists despite their plans to curb spending this holiday season.
According to consulting firm PwC, Gen Z shoppers intend to reduce their spending by a whopping 23% on average compared to last year, the sharpest decline among all generations. This shift is a stark contrast to their plans last year, when they aimed to increase spending by 37%.
And this is the part most people miss: the economic landscape is changing, and it's impacting shopping behaviors. Reports indicate a "K-shaped" economy, where wealthier consumers continue to spend freely while lower-income individuals adopt more conservative shopping habits due to rising prices and economic uncertainty.
A recent Deloitte survey adds to this narrative, revealing that consumers overall plan to spend 4% less on Black Friday this year, primarily due to financial concerns and a higher cost of living. However, Rutherford observes that consumers are becoming more purposeful and value-conscious in their holiday shopping.
This shift in mindset is reflected in the growing support for small businesses. AT&T's survey found that 77% of consumers would opt for small businesses for all their holiday shopping if prices were competitive. This preference for local businesses is a trend that has gained momentum, with the number of survey respondents shopping at small businesses to support their local economies increasing by 8 percentage points compared to last year.
"There's a growing awareness of pricing and a willingness to support local businesses if it means getting a good deal," Rutherford notes. The survey also reveals an interesting dynamic: 72% of people get their gift ideas from in-person shopping, not social media. This preference for physical shopping experiences could be a response to the rise of AI-driven shopping.
As AI transforms the retail landscape, over half of shoppers say they are more likely to use traditional online search methods for their holiday gifting, with only 9% expressing a preference for AI-assisted shopping. "AI has become ubiquitous, but I believe we'll see a gradual shift towards AI-driven shopping as time goes on," Rutherford predicts.
So, the question remains: will Gen Z's love for Black Friday persist, and will it shape the future of holiday shopping? The answers are yet to be discovered, but one thing is clear: the retail landscape is evolving, and consumers are adapting their strategies accordingly.
