A greater percentage of Millennials have now entered adulthood and with the boom of e-commerce businesses, they’re spending more online than in any brick and mortar store.
When you’re young the flow of money into your pockets is limited, hence it’s highly likely that you control your expenditures, but that’s just not the case with Millennials — both young and mid-aged.
Research by Checkout Tracking shows that Millennials spend more shopping online than in stores and spend less than previous generation’s young adults.
Although Millennials shop more in brick and mortar stores, they end up spending more when shopping online.
The data was gathered using shopping receipts paid by Millennials between the age of 18-34 for both online and on-ground shopping.
“Millennials are learning to do more with less and spending has become an art form. Understanding what is most likely to influence that spend is critical for success today,” said Marshal Cohen, Chief Industry Analyst, NPD Group (parent company of Checkout Tracking).
People are likely to have increased expenditure as they start to earn their own bread, but the research suggests that this generation of young adults is frugal when compared to the preceding generation of Boomers and Gen X.
Millennials shop twice as much online than they end up spending in brick and mortar stores, especially in these three categories: Apparels, Electronics and Home/Kitchen.
The data shows that on an average a Millennial aged 18-24 spends $53.45 on electronics while shopping online and $23.96 on electronics when shopping at stores.
Millennials aged 25-34 spend a little more at $66.10 on electronics while shopping online and $24.83 when shopping at stores.
Factors Leading to Increased Spending Online
The data goes to show that although there is negligible difference between the spending of the two age groups in brick and mortar stores, the gap between two age groups considerably increases if you take into account their online spending.
Free shipping attracts a large number of shoppers, which is an added convenience. Shoppers can easily compare products and their pricing easily online and return policy of major e-commerce sites makes things all the more convenient as everything can be done through a click of a button.
Shopping online is the more preferred method since it gives you the ease of browsing through a large collection of items while sitting in the comfort of your home or even taking the bus back from work.
As it is, Millennials are said to be impatient and have a shorter attention span, shopping online just facilitates these qualities and maybe that’s why brick and mortar stores need to start worrying — or maybe shift their business online.