Holidays Unzipped: Zip’s 2021 Holiday Spending Report
Fascinating insights on
consumer shopping, gifting, and
budgeting trends this holiday season.
After a highly unusual holiday season in 2020, it seems that consumers are embracing the holiday season much as they have in years past: traditional gifts like clothing reign supreme, and many plan to spend the holidays close to home.
However, our Zip users are a trendsetting bunch, and hints at a crack in the status quo have emerged in their approach to budgeting, gifting, and experiencing all that the holiday season has to offer. This report covers everything retailers should know to make the most of a return to the new normal during the 2021 holiday season.
This report is based on findings from a Zip survey as well as proprietary Zip data.
Online survey conducted by YouGov, on behalf of Zip USA
Completed by n=1685 respondents aged 18+
10 minute online survey among US Nat rep sample
Natural fall out of n=451 BNPL users
Before we jump into the details, let’s take stock of the big picture.
Here’s a quick look at macro consumer trends and what we’ve seen at
Zip year over year.
Retail sales between November 2020 and January 2021 totaled $1.19 trillion.
Despite the reopening of stores this holiday season, a steady share of consumers are still opting to shop online.
Last year, big box retail was big business.
Compared to Zip US’s overall growth during the holiday season, we saw:
It’s early yet, but these Zip retailers have been on fire in October (week of 10/11):
While the majority of Americans are creating budgets ahead of this holiday season, BNPL users are more enthusiastic—setting aside larger quantities of cash and planning to spend more.
of Americans are creating budgets for the holiday season.
of BNPL users are setting aside $101 to $250 monthly.
Consumers are eager to return to a sense of normalcy for this holiday season. As the survey data shows, retailers can expect to see bigger holiday shopping budgets—particularly from BNPL users—looking not only for the best deals earlier than ever before but also flexible, transparent payment terms for all their holiday purchases.Brad Lindenberg, Zip US Co-CEO
Convenience reigns as the majority of BNPL users aim to complete holiday shopping online and early, to secure their gifts on time in the face of supply chain issues.
More than half of Americans will do their shopping online this year.
Almost 51% of Americans plan to finish their Christmas shopping by November and more than half of BNPL users plan to finish shopping by Thanksgiving. Both groups are motivated by fear of shipping delays and product shortages.
Like younger Americans, Zip users are more likely to shop in digital channels, participate in digital shopping events, and seek inspiration from brands, media, and influencers for holiday gifts.
of Zip users prefer personalized suggestions from brands.
find online influencers a great source of inspiration for gift-giving.
find inspiration via magazines or broadcast TV.
Younger Americans cite payment flexibility as a leading factor in their decision-making process.
What factors most impact consumers’ decisions on where to shop during the holiday season?
Traditional gifts top the wish lists for Millennials, Generation X, and Baby Boomers, but experiential gifts are making headway among mid- to high-earners and BNPL users.
of Americans prefer traditional gifts, such as tech products, clothing, and accessories.
BNPL users are particularly interested in gifting the following during this season:
their time & services (i.e. babysitting)
Zip users in particular are interested in gifting:
No place like home for the holidays! The majority of Americans are
planning for local travel this holiday season.
Zip users, however, are more likely to jet set or road trip domestically to
visit family and friends.
of Americans do not plan to
spend anything on holiday
travel this year.
of Americans decided to set aside a budget for holiday travel, but 68% of Zip users are planning to spend on travel this year.
Zip users traveling this season are likely to do so:
Generation Z and Millennials desire travel as a gift
and friends this season.
Ready to put these insights into action?
Here's the high-level summary:
Interested in learning more about the benefits of offering Buy Now, Pay Later ahead of the holiday season?
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