Holiday shoppers are adjusting to financial pressures in real time with 83% of respondents to a survey from AI service provider Qlik saying they are making changes to their holiday shopping plans to address economic realities.
Of those changing plans, 40% are buying fewer gifts, and 35% started their shopping earlier to stretch budgets across more pay periods, according to Qlik. Inflation is the key factor prompting decisions to change shopping patterns for 39% of consumers, with tariffs at 15% coming in second and concerns about an AI bubble that might deflate under the weight of expectations and hurt the economy following at 9%.
A shift to lower-cost alternatives from premium brands, led by Gen Z, has arisen as a prime response to macroeconomic concerns, Qlik observed. In the generational case, 32% of Gen Z shoppers said they deliberately seek out substitutes for premium brands, for example, by choosing private labels. Value retailers, private labels and less expensive emerging brands all come into play as shoppers look for lower price alternative products rather than simply like-for-like copies, Qlik maintained. Such swaps demonstrate how younger shoppers are determined to pace trends while staying within tight seasonal budgets, the company added.
Given circumstances, retailers are seeing significant shifts in consumer behavior, including the mainstreaming of second-hand gifting across generations, Qlik maintained. Indeed, the Silent Generation, aged 80 and over, shops at second-hand or thrift stores for holiday gifts at nearly the same rate as Millennials (23%), and Gen X (21%). Still, GenZers leads with 31% thrifting for the holidays. Boomers, at just 13%, overwhelmingly avoid pre-owned gifts, which could be considered ironic as second-hand goods became commonplace purchases during their younger days in the 1960s and ‘70s.
Generational differences affect returns as well. According to Qlik, 20% of consumers spend more at the time of return than the value of the item they are returning, with Gen Z again leading. One in three GenZers routinely top up their return by purchasing something more desirable. However, GenZers are most prone to bracketing or otherwise buying more than they intend to keep, with 54% acknowledging that they have purchased something online expecting they will likely return the item, followed by Millennials at 43% and GenXers at 32%.
“Gen Z is giving retailers a preview of the next decade,” said Qlik CEO Mike Capone. “They want the latest trends, they are ruthless about value, and they treat returns as a normal part of how they shop. Our research shows the real opportunity is to design for that entire journey, from the first search to the moment a customer walks in with a return and leaves with something better. The retailers that come out ahead will use solid data and agentic AI to get their price points right, protect their brands, and turn returns from a cost center into one of the most profitable parts of the season.”
