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How the Different Generations Will Shop for the Holidays in 2025

Written by: Parcel Pending

7 Min Read

Published: October 28, 2025

As consumers begin their annual holiday shopping, it’s essential to examine forecasts and trends that will shape the season. This blog explores how different generations shop and how these shopping patterns, in turn, influence how retailers can utilize lockers to deliver a better customer experience and drive sales.

The 4 Trends Influencing Holiday Shopping

Retail analysts predict a range of trends that will influence the upcoming shopping season. These include:

Economic Uncertainty

Changes in the economy continues to dominate shoppers’ buying habits. One-third of shoppers have reduced their purchases over the past six months, while two-thirds are trading down to lower-priced alternatives regardless of their overall spending levels.1 Consumers expect their seasonal spending to decline by an average of 5% in 2025, marking the first notable drop since 2020.2 However, the Mastercard Economics Institute is still forecasting an uptick in overall spending, with online shopping expected to grow an estimated 7.9% this year.3

Tariff Impact

Tariffs remain a waiting game for both consumers and retailers. 40% of global shoppers stated that they are waiting out trade implications, and retailers are continuing to debate whether their customers will absorb price increases.4 Regardless of which path retailers take, inventory shortages will likely play a role in this year’s holiday shopping season.

Late Holiday Season

Thanksgiving, Black Friday, and Cyber Monday are arriving late this year. These five days are estimated to make up almost 40% of holiday gift spending.5 PWC also estimates that 80% of all planned spending will be complete by the end of Cyber Monday.6

‘Tis the Season for Gift Cards

With budgets under greater than normal strain, expect shoppers to buy more gift cards this season, as it keeps their spending within budget while allowing the recipient to choose the gift they want. Since 38% of gift card spending occurs throughout December and January, sales often spill over into the 2026 calendar year.7

Meet the Generations & Their Usual Shopping Habits

It’s easy to lump shoppers into one category, but each generation has distinct preferences. Here’s a handy guide to help differentiate the generations.

  • Baby Boomers: Born between 1946 and 1964, this generation was the top spending shopper before they moved into their golden years. They remain the largest generation, comprising 37% of US households.8
  • Generation X: Born between 1965 and 1980, Gen X are the current top purchasers in the United States. They are increasingly becoming empty nesters and therefore have more disposable income. They spend $16,880 annually on CPG & general merchandise.9
  • Generation Y (aka Millennials): Born between 1981 and 2000, millennials are the next largest shopping generation, and tend to be deal-conscious consumers. Walmart is their top retailer, alongside other big box and club retailers like Amazon, Costco, and Target. As this generation shifts into parenthood, children’s and baby brands are also gaining share.
  • Generation Z: Born between 2001 and 2020, Gen Z has never known life without the Internet. They prefer to experience brands digitally but are increasingly more likely to shop at a mall than other generations.
  • Generation Alpha: Born between 2010 and 2024, this next generation mainly influences purchase decisions rather than making them outright. 69% of Gen Alpha children have already requested something they saw in an advertisement, with 50% asking for it before the age of six.10

The Great Generational Divide on 2025 Holiday Shopping

This holiday season reveals a stark generational split in consumer spending, with economic pressures hitting different age groups in dramatically different ways. The contrast is most evident between the youngest and oldest shoppers, who are moving in opposite directions despite facing the same broader economic uncertainty.

Baby Boomers to Increase Spending

Baby Boomers stand as the most financially resilient generation this holiday season, planning to increase their spending by 5% compared to last year.11 Boomers will be gift-focused, allocating 67% of their spending to family presents rather than themselves.12 While they value traditional factors like brand trust, product quality, and excellent customer service, they are increasingly embracing omnichannel shopping options, including buy online, pick up in-store (BOPIS) and curbside pickup, to reduce stress and improve convenience. However, don’t expect to see them in-store during the peak shopping weekend; only 30% of Boomers prefer shopping in-store on Black Friday, compared to 65% of Gen Z.13

Gen X Seeking Value

Gen X is maintaining steady spending levels despite economic headwinds, demonstrating resilience similar to that of their Boomer counterparts. Like other generations focused on family, they’re shopping earlier to capture deals and they value having a variety of fulfillment options available around significant promotional periods. However, Gen X appears to be navigating the holiday season with less dramatic shifts than the generations on either side of them.

Millennials Balancing Earning Power & Obligations

Millennials find themselves in the middle of the generational spectrum, with holiday spending expected to be nearly flat year over year, down just 1%.14 While many are in their peak earning years, they’re simultaneously managing high fixed expenses and elevated cost of living. Despite this, millennials are expected to direct 62% of their budgets toward family gifts, reflecting their life stage as parents and established family members.15 They started shopping earlier this year (some as early as August and September) to take advantage of holiday deals and they continue to emphasize both value and speed of fulfillment, with about 30% preferring same-day delivery options.16 Their spending reflects a careful balancing act between earning power and financial obligations.

Gen Z: The Key Generation in the War for Sales

Gen Z is pulling back more sharply than any other generation, planning to slash holiday budgets by 23%. This marks a dramatic reversal from last year, when Gen Z’s holiday spending surged 37% year-over-year, highlighting how quickly their spending patterns can shift in response to changing economic realities.17 The pullback stems from a confluence of challenges: a tough job market, early career instability, major life transitions, and limited savings.

Despite these budget constraints, Gen Z’s shopping behavior reflects distinctive values and priorities. They’re directing 39% of their smaller budgets toward self-gifting rather than presents for others, and they’re notably focused on sustainability and wellness.18 They’re also leading the adoption of AI shopping tools, with 10% now starting their product searches with AI chat assistants like ChatGPT, which is double the rate of shoppers overall, according to Salesforce.19

Retail Parcel Lockers: the Key to Omnichannel Success

Online and in-store shopping have reached near channel parity, with consumers across the board starting their research journey online and increasingly preferring to go in-store to interact with products, access promotions, and experience the holiday atmosphere.

Retailers must not only look to ensure seamless transitions between online and in-store experiences but also create in-store experiences for every generation – from customers who want to wander the aisles and ask store associates for insights to those who want to grab their orders and go without battling peak season crowds.

Retail parcel lockers deliver these and other measurable benefits for both customers and retailers:

  • MORE Convenience: Up to 24/7 order retrieval on shoppers’ schedules, with quick self-service pickup in less than 30 seconds.
  • MORE Customer Loyalty: 45% of locker users indicate they will purchase again within 30-60 days, and customers who wait under 2 minutes are four times more likely to be repeat shoppers.20,21
  • MORE Sales: 40% of shoppers make additional purchases when visiting stores for pickups or returns, while loyal customers spend 20% more during the holiday season.22,23
  • MORE Operational Efficiency: Lockers have reduced manual order management by up to 50% for national retailers, freeing associates to focus on in-store shoppers with minimal margin impact.24
  • MORE Cost Savings: Fulfilling orders from store inventory creates a one-stop shop for deliveries and returns.
  • MORE Sustainability: Consolidating deliveries to stores reduces greenhouse gas emissions, roadway congestion, and CO2 pollution.

This holiday season’s success hinges on meeting diverse generational needs with seamless fulfillment. Smart lockers deliver the convenience, efficiency, and sustainability that drive loyalty and sales across all age groups.

Ready to lock in your order management solution? Speak with a Parcel Pending representative today.

Sources:

  1. Schwartz, Caila. AI and Agents Present a $236B Holiday Opportunity for Retailers in 2025. www.salesforce.com. September 16, 2025. https://www.salesforce.com/blog/holiday-predictions-2025/
  2. Furman, A., Ketzel, J., Pedersen, K., & DeSantis, C. A seasonal remix: Value, meaning and generational shifts. www.pwc.com. September 3, 2025. https://www.pwc.com/us/en/industries/consumer-markets/library/holiday-outlook-trends.html
  3. Hyman, Vicki. Holiday spending trends unwrapped. www.mastercard.com. September 22, 2025. https://www.mastercard.com/us/en/news-and-trends/stories/2025/mei-holiday-report-2025.html
  4. Schwartz, Caila. AI and Agents Present a $236B Holiday Opportunity for Retailers in 2025. www.salesforce.com. September 16, 2025. https://www.salesforce.com/blog/holiday-predictions-2025/
  5. Furman, A., Ketzel, J., Pedersen, K., & DeSantis, C. A seasonal remix: Value, meaning and generational shifts. www.pwc.com. September 3, 2025. https://www.pwc.com/us/en/industries/consumer-markets/library/holiday-outlook-trends.html
  6. Ibid.
  7. Hyman, Vicki. Holiday spending trends unwrapped. www.mastercard.com. September 22, 2025. https://www.mastercard.com/us/en/news-and-trends/stories/2025/mei-holiday-report-2025.html
  8. Numerator. Discover the Boomer consumer. www.numerator.com. n.d. https://www.numerator.com/boomer-consumer-behavior/
  9. Numerator. Discover the Gen X consumer. www.numerator.com. n.d. https://www.numerator.com/gen-x-consumer-behavior/
  10. Paustian, Shawn. Gen Alpha Shopping Trends to Expect in 2025 and 2026. www.numerator.com. September 16, 2025. https://www.numerator.com/resources/blog/generation-alpha-future-consumers/
  11. Accelerant Research. Holiday Shopping 2025: What Market Research Reveals about a Season in Transition. www.accelerantresearch.com. September 30, 2025. https://www.accelerantresearch.com/articles/holiday-shopping-2025-what-market-research-reveals-about-a-season-in-transition
  12. Furman, A., Ketzel, J., Pedersen, K., & DeSantis, C. A seasonal remix: Value, meaning and generational shifts. www.pwc.com. September 3, 2025. https://www.pwc.com/us/en/industries/consumer-markets/library/holiday-outlook-trends.html
  13. Schwartz, Caila. AI and Agents Present a $236B Holiday Opportunity for Retailers in 2025. www.salesforce.com. September 16, 2025. https://www.salesforce.com/blog/holiday-predictions-2025/
  14. Furman, A., Ketzel, J., Pedersen, K., & DeSantis, C. A seasonal remix: Value, meaning and generational shifts. www.pwc.com. September 3, 2025. https://www.pwc.com/us/en/industries/consumer-markets/library/holiday-outlook-trends.html
  15. Ibid.
  16. Ibid.
  17. Ibid.
  18. Ibid.
  19. Schwartz, Caila. AI and Agents Present a $236B Holiday Opportunity for Retailers in 2025. www.salesforce.com. September 16, 2025. https://www.salesforce.com/blog/holiday-predictions-2025/
  20. Based on customer data. Your results may vary.
  21. Rakuten Ready & Solis, Brian. Rakuten Ready 2019 Time Study. www.rakutenready.com. October 29, 2019. https://www.rakutenready.com/time
  22. RetailCustomerExperience.com. In-store shopping sentiment on rise, consumers expect omnichannel experience. www.retailcustomerexperience.com. October 7, 2024. https://www.retailcustomerexperience.com/news/in-store-shopping-sentiment-on-rise-consumers-expect-omnichannel-experience/
  23. Schwartz, Caila. AI and Agents Present a $236B Holiday Opportunity for Retailers in 2025. www.salesforce.com. September 16, 2025. https://www.salesforce.com/blog/holiday-predictions-2025/
  24. Based on customer data. Your results may vary.
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