Shoppers shift e-commerce spending towards leisure and home goods in the run-up to Black Friday
New Klarna data reveals consumer purchasing patterns ahead of Thanksgiving weekend
Nov 25, 2020, 12:29 ET
NEW YORK, Nov. 25, 2020 /PRNewswire/ -- Klarna, the leading global payments provider and shopping service, today released new holiday shopping data that indicates shoppers in the US shifted their share of e-commerce spending towards the leisure, sports & hobby and home & garden categories in the week ahead of Thanksgiving (November 16-22). Analyzing transactions made through the Klarna app, which allows consumers to shop from any online store, Klarna also identified the most-shopped categories among US Gen Zers, Millennials, Gen Xers and Baby Boomers leading up to Black Friday.
"US shoppers are focusing more on leisure, sports, and home goods purchases as we approach Thanksgiving and Black Friday," said David Sykes, Head of US at Klarna. "Klarna's new data also indicates that younger shoppers are taking advantage of mobile shopping and flexible payment options to purchase home supplies, appliances and furniture. This spending shift may reflect an increase in the number of consumers planning to cook and bake for Thanksgiving - a holiday that many younger households will be celebrating on their own this year due to safety concerns amid the ongoing pandemic."
- The leisure, sports & hobby category saw 6% week-over-week growth in share of wallet across all generations in the week ended November 22, with the most-shopped retailers being book stores, sporting goods stores, and gift card and souvenir shops. This growth was especially pronounced among Millennials (up 6%), Baby Boomers (up 7%) and Gen Xers (up 6%).
- The home and garden category's share of wallet also grew by 11% across all four generations, with the most-shopped retailers being furniture, home supply and household appliance stores. This growth was especially pronounced among Millennials (up 13%), Baby Boomers (up 13%) and Gen Xers (up 11%).
- Gen Zers and Gen Xers shifted more of their spending toward the health and beauty category, increasing their share of wallet spent on these items by 12% and 2%, respectively, week-over-week. Meanwhile, share of wallet spent on this category fell among Millennials (down 4%) and Boomers (down 17%).
- Shoppers were divided on electronics during the week ended November 22. Boomers and Gen Xers shifted more of their spending towards the category, increasing their share of wallet spent on electronics by 17% and 8%, respectively, week-over-week. Electronics were less of a spending priority for Gen Z shoppers, with their share of wallet spent on the category falling by 8%.
- All generations shifted spending away from the marketplace category, which registered a 5% drop in share of wallet week-over-week.
Klarna has been analyzing share of wallet, or how its app users are dividing their spending among different shopping categories, to identify which categories consumers are shopping most often through the Klarna app. Throughout November and December, the company will continue to analyze proprietary data on a weekly basis to identify notable insights around consumer behavior during the critical 2020 holiday peak season period.
Klarna analyzed purchases made through Klarna's US in-app shopping feature for the week of November 16-22, 2020, versus the previous week. The data indicates the distribution of purchase volumes among the following selected categories:
- Home and garden: furniture, tools and home improvement, pet supplies, kitchenware, plants and flowers, and cleaning products
- Leisure, sports & hobby: sports and outdoor gear, concept stores, hobby articles, prints and photos, costumes, and party supplies
- Health and beauty: health, beauty and cosmetics; body and haircare; personal care; dietary supplements; fragrances; and prescription optics
- Marketplace: items purchased from the likes of Amazon.com, Walmart.com, Target.com and eBay.com
- Electronics: diversified electronics, electronic equipment and related accessories, household electronics (including white goods and appliances), office machines and related accessories (excluding computers), and car electronics
We make shopping smoooth. With Klarna, consumers can buy now and pay later, so they can get what they need today. Klarna's offering to consumers and retailers includes payments, social shopping and personal finances. Over 200,000 retail partners, including H&M, IKEA, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch, Nike and AliExpress, have enabled Klarna's innovative shopping experience online and in-store. Klarna is ranked number five on the 2020 CNBC Disruptor 50 list, is the most highly valued fintech in Europe with a valuation of $10.65 billion, and is one of the largest private fintechs globally. Klarna was founded in 2005, has over 3,500 employees and is active in 17 countries. For more information, visit klarna.com.
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SOURCE Klarna Bank AB
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