What Businesses Can Expect During The Holiday Season

Since the COVID pandemic, consumers have taken a hit and quite been able to recover. The average consumer’s Equifax Market Pulse Index (MPI) dropped from 62.0 to 61.4. This decrease is seen disproportionately in younger generations however. Millennials and Generation Z saw a decrease of 1.1 and 3.3 respectively. Because of the worsened financial state, discretionary spending has seen a drastic drop. The holiday season, especially, has seen major cutbacks in younger generations. It is currently projected that Generation Z plans to spend 23% less than just a year ago in 2024.

So how are consumer finances going to change purchasing behavior? Firstly, the presence of Buy Now, Pay Later (BNPL) options are becoming more of a necessity. 43% of all consumers say BNPL dictates where they shop and 67% of parents already plan to finance holiday shopping via BNPL services. Consumers are also expecting their needs to be met when they shop with your company. Around 70% of consumers expect companies to offer personalized interactions while they shop.

Fortunately, it’s easy to both accommodate consumers and personalize interactions if you properly prepare for both. Thankfully, Equifax’s market insights make it easy to reinforce your business to the everchanging holiday season. Their advisors offer personalized market insight sessions, as well as convenient webinars. Ultimately, to help your business thrive during these tough times, it’s essential to take advantage of Equifax reports for this holiday season trends.