Consumers under 56 are focusing online purchases on certain categories as the COVID-19 outbreak continues.
According to analysis of transactions made through payments provider Klarna, younger shoppers are focusing on what they will wear and their home environment as most Americans are now under some type of “stay-at-home” order. Klarna analysed purchases by shoppers in the Gen Z (ages 18–23), millennial (ages 24–39) and Gen X (ages 40–55) demographics over the weeks of March 22–28 and March 15–21, as well as a base period of 1 February – 7 March 2020. The company broke out purchases into seven major categories and then analysed how each category’s share of all Klarna purchases has shifted over time in each age group.
According to the analysis, Gen Z, millennial and Gen X consumers who use Klarna have increased their share of e-commerce spending on apparel, footwear and accessories as well as home and garden items. Week-over-week in the week ended 28 March 2020, the apparel, footwear and accessories category’s share of all Klarna-enabled purchases increased by 18 per cent among Gen Zers. Shoppers in this age group grew their share of apparel, footwear and accessories spending from 44 per cent in the week ended 21 March to 52 per cent in the week ended 28 March.
Apparel, footwear and accessories spending also increased 13 per cent among millennials, from 32 per cent in the week ended 21 March to 36 per cent in the week ended 28 March. E-commerce spend in this category grew four per cent among Gen Xers, accounting for 26 per cent of the volume of Gen Xers’ purchases in the week ended 21 March, with that share growing to 27 per cent in the week ended 28 March.
The home and garden category’s share of all Klarna-enabled purchases also grew across all three age groups. The category’s volume share increased slightly among Gen Zers and millennials and by nine per cent among Gen Xers week-over-week in the week ended 28 March.
Sales volumes in three other major categories—leisure, sport and hobby; marketplace; and intangible products (which includes event tickets and travel services)—fell week over week from March 22–28 among all three demographic groups.