75% of Consumers Prioritize Price and Value in Holiday Purchases, Says Report
The holiday shopping season has undergone a major shift, with a new Klarna study revealing that 40% of consumers began their holiday shopping earlier in 2021 than they did the previous year.
The holiday shopping season has undergone a major shift, with a new Klarna study revealing that 40% of consumers began their holiday shopping earlier in 2021 than they did the previous year. This trend, detailed in Klarna’s 2021 Holidays Unwrapped report, reflects changing consumer priorities and the evolving retail landscape in the wake of pandemic disruptions and ongoing supply chain challenges.
Why Are Shoppers Starting Earlier?
Several key factors are driving this early shopping surge:
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Desire for Holiday Sales: Nearly three-quarters (72%) of shoppers cite the need to capitalize on early holiday deals as the main motivator for getting a head start on gift buying.
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Supply Chain Concerns: With widespread reports of inventory shortages and shipping delays, half of shoppers (50%) are shopping early to ensure product availability, while 45% want to avoid shipping delays.
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Stress Reduction: 39% are eager to avoid the last-minute rush and the stress that comes with it.
This early start is not just anecdotal. Klarna’s data, based on surveys of over 24,000 US shoppers and proprietary shopping trends from 20 million consumers, found that 71% of shoppers planned to begin holiday shopping before December, and 22% had already started by the time of the survey.
The Impact on Retailers and Spending
Early shoppers are not only more organized—they’re also more lucrative for retailers. Klarna’s report highlights that this group plans to spend 16% more, on average, than those who wait until later in the season. Over a third (34%) of all shoppers intend to spend more on gifts than last year, with Gen Zers (57%) and Millennials (53%) leading the charge in expanding their holiday budgets.
Retailers are taking note, launching promotions and sales events earlier than ever. Major chains like Target, and Walmart rolled out holiday deals and price match guarantees as early as October to capture these proactive shoppers.
Shopping Preferences: Online, In-Store, and Omnichannel
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Digital Dominance: Shoppers planning to do most of their holiday shopping online have bigger budgets, intending to spend 9% more than those shopping primarily in-store.
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Omnichannel Expectations: 80% of shoppers expect a seamless, connected experience across both online and offline channels, with convenient payment options and high-touch customer service.
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Flexible Payments: The appeal of “Buy Now, Pay Later” options like Klarna’s Pay in 4 is especially strong among shoppers with larger budgets and among younger consumers.
Black Friday vs. Cyber Monday: The Battle for Biggest Shopping Day
The report also found that Black Friday is poised to overtake Cyber Monday as the biggest online shopping day, with 49% of shoppers planning to make the bulk of their purchases on Black Friday compared to 38% on Cyber Monday. Notably, 56% of Black Friday shoppers said they would shop mostly online, reflecting the sustained shift to digital commerce.
| Shopping Day | % Planning Major Purchases | % Shopping Online | % Shopping In-Store |
|---|---|---|---|
| Black Friday | 49% | 56% | 23% |
| Cyber Monday | 38% | - | - |
Social Media and “Shoppertainment” Influence
Social media continues to drive discovery and purchasing decisions, especially among younger shoppers. A striking 78% of Gen Z and 79% of Millennials reported buying products after seeing them on social platforms, and a majority are interested in livestream shopping events and T-commerce.
Top Categories and Retail Destinations
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Electronics reigns as the top shopping category, with sales surging on Black Friday and Cyber Monday.
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Big-box retailers (62%) remain the most popular holiday shopping destinations, followed by department stores (37%) and malls (34%).
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Gen Z is more likely than other age groups to shop at malls and engage with brands on social media and livestream events.
Key Takeaways for Retailers
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Start Promotions Early: With consumers shopping sooner, brands must launch deals and marketing campaigns ahead of the traditional holiday calendar.
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Offer Flexible Payments: Interest-free installment options are increasingly expected, especially by younger and higher-budget shoppers.
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Deliver Omnichannel Excellence: Seamless, convenient experiences—online and in-store—are now table stakes.
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Leverage Social Media: Influencer partnerships and social commerce can be powerful drivers of discovery and sales, especially among Gen Z and Millennials.
Looking Forward
The 2021 holiday season marked a turning point in consumer behavior. Driven by a mix of deal-seeking, supply chain anxiety, and new digital habits, 40% of shoppers started their holiday shopping earlier than ever before. Retailers that adapt to these trends—by starting promotions early, offering flexible payment options, and delivering seamless omnichannel experiences—will be best positioned to capture the expanding holiday budgets of today’s proactive shoppers.
