It’s the most wonderful time of the year – great food, good times with friends and family, and finally getting your hands on that new gadget you’ve been eyeing all year. But as faux-frosted shop windows pop up in stores across the Gulf South, it’s not uncommon that many of us feel the financial strain of the season as meals, travel and gift costs stack up.
Winter Wallet Watch
We know the economy is the most pressing issue for everyone in the Gulf South and beyond, and we know some wallets have felt extra tight this year as the economy remains in constant flux, at least according to the news.
Saving Up: According to the National Retail Federation and CNBC’s monthly retail monitor, spending slowed in September – but year-over-year growth is holding steady. Consumers aren’t pulling back; they’ve been preparing to save now and spend more later.
And speaking of saving now, spending later… More shoppers than ever are leaning on “Buy Now, Pay Later” models, according to a recent PayPal survey. Over half of consumers plan to do so in order to save money and budget better, and PayPal’s data reports BNPL leads to a 91% higher order value for large companies and 62% higher for smaller businesses. Stretching a purchase across multiple installments is making us feel more in control of our spending, while still letting us buy the things we want.
The ability to spread out payments make us feel more in control, but it’s not without risk. Unsurprisingly, YouGov reports nearly half of U.S. adults who regularly use BNPL struggle to make the payments. From overspending to missing installments, the platforms may be causing more struggles than they’re worth. With ‘holiday magic’ already tempting shoppers to splurge, this may be the season to think twice before adding AfterPay to your apps.
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Scroll, Swipe, Spend, Repeat
Surprise: Social media is influencing our spending habits this holiday season. Unsurprising news to those of us who have fallen victim to a targeted ad showing us the exact item we’ve been looking for – purchasing it with as few clicks as it takes to unlock our phone.
Total Takeover: Recent data from Sprout Social predicts that 80% of shoppers plan to use social media as much or more than last year to find gifts. 69% of them are okay with brands using AI to tailor the experience better towards them. We aren’t escaping social media in any spheres of our lives.
Online shopping isn’t new, but the precision of these digital experiences feels novel. Every site is inundated with personalized ads that are all too easy to fall for, and as Resonate notes, this might just be the beginning: social media’s growth as a shopping hub in 2025 is expected to grow by 10%.
Unavoidable Ads: As annoyed as we might be with them, we can’t stay away from the endless ads. According to the 2025 Gulf South Index, 55% of the Gulf South and 47% of national respondents pay attention to the ads popping up on their social media. Whether we seek out ourselves or are served them, our social platforms are the next frontier for retail.
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Generational Purse Strings
As Gen X and Baby Boomers spoil their Gen Alpha grandkids, younger generations are tightening their budgets. While Gallup reports overall spending will remain consistent this year, the burden isn’t necessarily shared equally.
Gen Z is Anxious. A statement that can stand on its own, the pressure is certainly bigger when it comes to holiday shopping. Deloitte reports Gen Z is 6% more anxious about higher prices than other generations, and PwC says they plan to spend 23% less on average than they did in 2024. Having entered adulthood among economic uncertainty, Gen Z’s cautious spending habits reflect their environment. Millennials, a similarly anxious group, may have less holiday stress than their younger siblings, but not by much.
Buying into Beauty: Remember the lipstick index? In tough economies, beauty and healthcare buys seem like small but indulgent purchases, leading to a rise in sales. And the trend is back for 2025, as Millennial women are some of the most high-frequency beauty buyers according to Morning Consult. And with Gen Z not far behind them, beauty products might be a safe bet for your stockings this year.
Alpha Dogs: Meanwhile, Generation Alpha has undeniable purchasing power before they’re even old enough to vote. Fast Company reports 49% of household spending is influenced by Gen Alpha – and 92% of parents say their children introduce them to new brands and products. For a generation that has already surpassed $100 billion in spending power due to e-commerce accessibility and parental sway, their influence on the holiday markets is only beginning.
***
The holiday season is all about tradition – with many being rewritten yearly by tech advancements, tightening budgets and new generational norms. While it’s important to stay on top of trends and shop smarter, the holidays still have plenty to offer besides what can be found on your phone or in your wallet.
It’s the most wonderful time of the year – great food, good times with friends and family, and finally getting your hands on that new gadget you’ve been eyeing all year. But as faux-frosted shop windows pop up in stores across the Gulf South, it’s not uncommon that many of us feel the financial strain of the season as meals, travel and gift costs stack up.
Winter Wallet Watch
We know the economy is the most pressing issue for everyone in the Gulf South and beyond, and we know some wallets have felt extra tight this year as the economy remains in constant flux, at least according to the news.
Saving Up: According to the National Retail Federation and CNBC’s monthly retail monitor, spending slowed in September – but year-over-year growth is holding steady. Consumers aren’t pulling back; they’ve been preparing to save now and spend more later.
And speaking of saving now, spending later… More shoppers than ever are leaning on “Buy Now, Pay Later” models, according to a recent PayPal survey. Over half of consumers plan to do so in order to save money and budget better, and PayPal’s data reports BNPL leads to a 91% higher order value for large companies and 62% higher for smaller businesses. Stretching a purchase across multiple installments is making us feel more in control of our spending, while still letting us buy the things we want.
The ability to spread out payments make us feel more in control, but it’s not without risk. Unsurprisingly, YouGov reports nearly half of U.S. adults who regularly use BNPL struggle to make the payments. From overspending to missing installments, the platforms may be causing more struggles than they’re worth. With ‘holiday magic’ already tempting shoppers to splurge, this may be the season to think twice before adding AfterPay to your apps.
***
Scroll, Swipe, Spend, Repeat
Surprise: Social media is influencing our spending habits this holiday season. Unsurprising news to those of us who have fallen victim to a targeted ad showing us the exact item we’ve been looking for – purchasing it with as few clicks as it takes to unlock our phone.
Total Takeover: Recent data from Sprout Social predicts that 80% of shoppers plan to use social media as much or more than last year to find gifts. 69% of them are okay with brands using AI to tailor the experience better towards them. We aren’t escaping social media in any spheres of our lives.
Online shopping isn’t new, but the precision of these digital experiences feels novel. Every site is inundated with personalized ads that are all too easy to fall for, and as Resonate notes, this might just be the beginning: social media’s growth as a shopping hub in 2025 is expected to grow by 10%.
Unavoidable Ads: As annoyed as we might be with them, we can’t stay away from the endless ads. According to the 2025 Gulf South Index, 55% of the Gulf South and 47% of national respondents pay attention to the ads popping up on their social media. Whether we seek out ourselves or are served them, our social platforms are the next frontier for retail.
***
Generational Purse Strings
As Gen X and Baby Boomers spoil their Gen Alpha grandkids, younger generations are tightening their budgets. While Gallup reports overall spending will remain consistent this year, the burden isn’t necessarily shared equally.
Gen Z is Anxious. A statement that can stand on its own, the pressure is certainly bigger when it comes to holiday shopping. Deloitte reports Gen Z is 6% more anxious about higher prices than other generations, and PwC says they plan to spend 23% less on average than they did in 2024. Having entered adulthood among economic uncertainty, Gen Z’s cautious spending habits reflect their environment. Millennials, a similarly anxious group, may have less holiday stress than their younger siblings, but not by much.
Buying into Beauty: Remember the lipstick index? In tough economies, beauty and healthcare buys seem like small but indulgent purchases, leading to a rise in sales. And the trend is back for 2025, as Millennial women are some of the most high-frequency beauty buyers according to Morning Consult. And with Gen Z not far behind them, beauty products might be a safe bet for your stockings this year.
Alpha Dogs: Meanwhile, Generation Alpha has undeniable purchasing power before they’re even old enough to vote. Fast Company reports 49% of household spending is influenced by Gen Alpha – and 92% of parents say their children introduce them to new brands and products. For a generation that has already surpassed $100 billion in spending power due to e-commerce accessibility and parental sway, their influence on the holiday markets is only beginning.
***
The holiday season is all about tradition – with many being rewritten yearly by tech advancements, tightening budgets and new generational norms. While it’s important to stay on top of trends and shop smarter, the holidays still have plenty to offer besides what can be found on your phone or in your wallet.
President
The Ehrhardt Group