The trend: Reports of Gen Z’s sluggish holiday spending may be exaggerated.

• Brands like Edikted, Kendra Scott, and Bath & Body Works—favorites of the cohort—saw heavier foot traffic during Black Friday, per Bloomberg.
• Gen Zers now plan to spend 6% more on gifts than they did in June, according to PwC’s updated holiday survey.
• The cohort will account for a greater share of Cyber Five spending this year—18%—while all other generations will see their share decline, per Deloitte.

The data: Gen Zers face a host of challenges, including a weakening labor market, rising cost of living, and broader economic uncertainty. These headwinds are driving many to concentrate spending on sales events like Black Friday and Cyber Monday and to explore cost-saving strategies like buying secondhand or crafting handmade presents.

• The vast majority—92%—of Gen Zers planned to make a purchase during the Cyber Five, per Deloitte, compared with 82% of the general population. More than half (56%) said they would cut back on other expenses in order to shop Black Friday-Cyber Monday events.
• Nearly two-thirds (65%) expect to maintain or increase secondhand spending this holiday season, according to Mastercard.
• And 1 in 4 (24%) plan to save money by making homemade presents, according to a survey from CNBC and SurveyMonkey.

Our recommendations: With the pressures on Gen Z spending set to persist beyond the holiday season, brands and retailers will have to work hard to make their case to the increasingly cash-strapped cohort.

• Jump on the TikTok bandwagon. Brands that can engage audiences where they already spend time, especially on TikTok, have a better chance of staying top-of-mind with shoppers and driving impulse purchases.
• Partner up. Retailers like Urban Outfitters and Gap are leaning on collaborations with brands and artists like Katseye to draw shoppers’ attention and stay culturally relevant.
• Emphasize value. Brands that can keep prices low have a better chance of preventing price-sensitive consumers from switching to cheaper dupes.

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