Discover Finds Digital Divide In Consumer Spending

The holiday shopping season is officially in full swing and as a recent survey points out, so are the spending habits of millennials.

Discover’s Annual Holiday Shopping Survey found that the overall spending this holiday season is on the rise, but so are the spending predictions for millennials. Nearly 43 percent of shoppers between the ages of 18-34 plan to spend more money this holiday season than they did last year, compared to 22 percent of shoppers ages 35 and older.

The spending of millennials may be growing at a faster rate, but 66 percent of the group said they will budget their holiday spending, with 52 percent of non-millennials planning to do the same.

While millennials and non-millennials are expected to spend similar amounts overall during the holidays — $941 and $926, respectively — the Discover survey found significant differences in the two groups’ shopping habits.

When it comes to mobile shopping experience, millennials are projected to outpace non-millennials more than 2-to-1 this year.

Roughly 73 percent of the millennials surveyed plan to use a smartphone or tablet for their holiday shopping, showing a drastic difference compared to their non-millennials counterparts (32 percent). Similarly, 52 percent of millennials said most of their holiday shopping will take place online, while only 42 percent of non-millennials expressed the same.

The national survey of 1,508 consumers also found that factors like sales/discounts, convenience and customer service will weigh heavily in the decision to shop at a retail store or not this holiday season.

In general, consumers plan to spend a total of 3 percent more in 2015 than in previous years. In comparison to 2010, when holiday shoppers only planned to spend an average of $730, this year’s anticipated spend of $927 represents a 27 percent spike in average spending.