November 14, 2017
Next week, the traditional holiday shopping season will officially begin. Experts are predicting growth in retail sales this year, especially online, with U.S. consumers predicted to spend more than $6 billion at e-commerce sites. For a little context of what retailers might expect from online consumers in 2017, Bank of America recently released some data on its cardholder spending from last year. For clothing stores targeting shoppers in their 40s, the outlook is especially rosy, if this year’s behavior is like 2016’s.
Not surprisingly, due to their position as the demographic with the most spending power along with having more young kids and teens, Generation X consumers spent the most, on average, in 2016 at $931 per person. Last year, according to B of A, one out of every five card purchases was made online.
While electronics had the highest percentage of orders occurring online (52 percent), consumers shopping for clothing spent the most ($274). And, on average, consumers spent more on clothes when they shopped online ($89 per purchase) than they did in stores ($74 per purchase). The gap was even more pronounced for millennials, who spent $82 per transaction when shopping for clothes online compared to $62 per transaction in stores.
But, while expectations are for online growth this year in the U.S., Cyber Monday and Black Friday again will take a back seat to China Singles Day. On Saturday, Nov. 11, e-commerce giant Alibaba raked in more than $25 billion in a 24-hour period, up from nearly $18 billion in 2016.