lifting, while other consumer segments will still show relatively strong spending momentum. On October 22, Coresight Research released a report examining how US consumers across four generations – Gen Z, millennials, Gen X and boomers – plan to shop during the 2026 holiday season. The report also explored each generation’s holiday purchase intentions, including planned spending levels and budgets, preferred product categories, sales events and shopping channels, retailers they expect to visit, and payment methods. “We continue to view holiday 2026 as a dollar-growth story more than a volume story, with part of that growth financed by credit,” said John Mercer, Coresight Research’s head of global research. Younger consumers are more likely than older shoppers to plan to spend more this holiday season than last year, including by relying more on credit. These shared plans may invite retailers to treat Gen Z and millennials as one group. However, Coresight’s report found that the two generations differ in their budgets, retailer preferences and reasons for choosing where to shop. It also found that millennials are more likely to shop across a wider range of categories and channels, likely reflecting their life stage. These generational differences may reflect age-related needs as much as, or more than, attitudes. How different generations plan to shop during the 2026 holiday season Compared with Gen X and boomers, the youngest cohorts – Gen Z and millennials – are likely to support dollar growth by absorbing price increases, Mercer noted. Both groups are equally likely to plan to spend more than last year, at 43 per cent each. Among younger shoppers, 52 per cent said price increases would prompt them to spend more in dollar terms, while 34 per cent plan to put a greater share of their spending on credit. However, millennials are also the generation most likely to say price increases will prompt them to buy fewer items. Millennials have the highest median holiday budget, at about $625, followed by Gen Z at $540, Gen X at $485 and baby boomers at $460. Boomer shoppers (54 per cent) reported being the most concerned about inflation, compared with Gen Z (34 per cent). Gen X and boomers were equally likely to rank personal finances as their top budgeting factor, at 37 per cent each. While 52 per cent of Gen Z and millennial shoppers said price increases would prompt them to spend more in dollar terms, the figure was 38 per cent among older shoppers. However, the generations showed similar expectations around purchase volumes: about 65 per cent of younger shoppers and 63 per cent of older shoppers agreed that price increases would prompt them to buy fewer items. This suggests younger shoppers remain the most deal-driven, even as they plan to spend more. Gen Z shoppers are the most likely to shop early to secure the best deals, at 48 per cent, compared with 25 per cent of boomers. The pattern follows a broader trend across the four generations. Additionally, younger consumers are more likely to rely on credit, including buy now, pay later (BNPL), to manage higher costs this holiday season. Implications for retailers and brands Mercer highlighted several implications for retailers and brands as they plan how to connect with each of the four generations. Plan separately for Gen Z and millennial shoppers Millennial shoppers plan to spend more across most product categories. They also lead on purchases during Black Friday and October sales events, and are more likely than Gen Z to prioritize the lowest price, quality and promotions when choosing where to shop. Retailers should offer deals, bundles and tools that help millennials shop for multiple recipients. Win Gen Z on timing and experience rather than depth of discount Gen Z puts less weight on the lowest price when choosing a retailer, yet leads all generations on shopping early for the best deals. “We view this as choosing retailers on other grounds (brand, assortment, store experience) while still timing purchases to maximize value, which may point to stronger brand preference and loyalty that companies can tap,” explained Mercer. Support units With about 65 per cent of younger shoppers expecting to buy fewer items as prices rise, companies should not interpret higher dollar budgets as a sign of stronger demand. Price-pack architecture – such as value-per-item offers, gift sets and multipacks – could help retailers support unit sales without relying on blanket promotions, particularly among millennials. Build resale into the Gen Z offer Three-quarters of Gen Z shoppers reported that they plan to buy or sell secondhand items, and one-quarter plan to sell through online marketplaces. While it is too late to implement programs from scratch for holiday 2026, retailers should consider these resale findings when planning for 2027. “We expect cyclical tailwinds (such as inflation) to continue adding to secular consumer migration toward fashion resale. We also consider secondhand a key entry point for younger consumers to luxury brands,” said Mercer. Treat BNPL as a marketing opportunity An estimated 38 per cent of Gen Z shoppers and 39 per cent of millennials plan to use BNPL, compared with 8 per cent of boomers. Younger shoppers increasingly expect BNPL options at checkout. Retailers can also promote these payment options earlier in the shopping journey to reach Gen Z and millennial customers. Help older shoppers decide One-quarter of older shoppers – Gen X and boomers – have not decided which categories they will spend more on, while 18 per cent of this combined group are unsure which sales events to shop. Boomer shoppers favor gift cards, standard delivery and choosing gifts themselves over AI tools. Mass retailers that already win this audience, like Walmart, can defend it with curated gift guides, simple delivery and AI features that are visibly optional. Calibrate AI discovery tools to the shoppers who use them Millennials are the most likely to plan to use AI for gift ideas, while 52 per cent of boomers prefer to choose gifts themselves. Social media remains the larger discovery channel for Gen Z, so near-term reach for shoppable content and creator-commerce tools is broader than for AI assistants. AI tools that help shoppers manage multiple recipients and budgets are best suited to millennial consumers. Further reading: New insights into Gen Z and how brands can tap into their search for connection