Bank Study Finds, This demographic also does more research before buying and owns more retail store cards
WILMINGTON, Del.—Millennials have been the major spenders, and that trend is expected to continue, according to the TD Bank Retail Experience Index.
According to TD’s research, Millennials were the generation to make the most major purchases in the last year—four on average—and are the most likely to make another major purchase, defined as a purchase of $500 or more, in the next six months.
Although Millennials are leading the way, survey results showed spending is up across the board, with Americans spending $245 more per major purchase than in 2017, and the average price take for the most recent major purchase coming in at $1,884. And nearly 70 percent of Americans are planning to make a large purchase in the next six months, up about 10 percent for 2017.
As for shopping categories, furniture continues to be the top one for major purchases, increasing to 26 percent in 2019 versus 22 percent two years ago.
While they buy more, Millennials also are doing more research, spending nearly 4.5 hours on this task, and also doing more research on financing options. And Millennials are taking advantage of retail store credit cards. The average number of cards held by Millennials is 2.9 vs. 2.5 for all shoppers. They also use their cards more frequently, using their cards 3.1 times per month versus 1.8 and 1.3, respectively, for Gen X and Baby Boomers.
“The myth that Millennials aren’t out there putting money into the economy is just that—a myth,” said Mike Rittler, general manager of retail card services, personal lending and business development at TD Bank. “Millennials are a discerning and price-conscious set of consumers, and while it may not be easy to earn their business, retailers should take notice.”
One key to success is to generate brand loyalty. The survey found satisfied cardholders spend more than nonengaged customers—about $700 more on average for major purchases. And more than half of consumers (57 percent) pick the same brands when making major purchases.
The survey was conducted by Maru/Matchbox, which sampled a targeted panel of 998 Americans who participated in holiday shopping. The online survey was fielded between Sept. 25 and Oct. 1, 2019.
Courtesy of Home Furnishing News
Written by: Joanne Friedrick, Contributing Editor