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Klarna report suggests most holiday shoppers won’t be deterred by rising costs

By Rachel Douglass

Oct 7, 2022

Retail

Image: Unsplash

A new report by online payment provider Klarna has suggested that US shoppers are likely to not be deterred by rising costs for the holiday season.

According to its data, 68 percent of shoppers said they planned to spend more or the same on holiday shopping this year compared to last year.

This compared to the 24 percent that said they had tightened their budgets and planned to spend less, while 31 percent were planning to spend more.

The results of the report differ from retailer’s prior expectations for ‘peak season’ shopping, as rising costs continue to have an impact on households throughout the region.

Noting the stark contrast in behaviour, Raji Behal, Klarna’s global head of partner success, said: “The common denominator is that the majority are approaching the holiday season sales in a much more savvy way.

“The vast majority of all holiday shoppers this season are focused on budget-friendly products, discounts, and smarter ways to shop.”

This could be seen in the responses of 66 percent of shoppers that stated they were planning to stick to budgets this year, up from last year’s 14 percent.

Respondents also expressed an interest in more flexible payment options, with 55 percent saying they will actively seek them out.

This trend was particularly prominent among younger generations, with Millennials making up 72 percent of respondents and 58 percent being Gen Z.

The report also covered a rising interest in discount stores, the return of in-person shopping, a demand for video shopping content and a gifting shift towards essential products.

Despite this, it seems fashion and apparel is continuing to remain as the most popular category to shop for this upcoming season, both online and in-store. Additionally, the most popular consumer brands were found to be Calvin Klein, Victoria’s Secret and H&M.

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