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Gen Z loves the convenience of mobile shopping
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Retailers helped drive the trend with easy-to-use apps
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Adobe sees Nov-Dec mobile purchases jumping 12.8% YOY
By Arriana McLymore
NEW YORK, Nov 28 (Reuters) - U.S. holiday shoppers have
big plans to use small screens for a head start this year on
Thanksgiving Day, and retailers have spent weeks priming them,
touting pre-Black Friday online discounts for everything from
TVs and toys to Bluetooth speakers.
Major retailers including Walmart ( WMT ) and Target ( TGT )
close their brick-and-mortar stores on Thanksgiving Day,
reopening their doors on Black Friday. But tech-savvy 18- to
24-year-olds who may be with their families for Thanksgiving are
likely to make mobile purchases from their sofas.
Shoppers have been lured by the convenience of apps that
have made it much easier in recent years to make purchases from
retailers' websites using mobile devices.
"What we've always seen is this gap between shoppers
looking and browsing from their phones, but then they go back to
their computers and buy," said Caila Schwartz, director of
consumer insights at Salesforce ( CRM ). That gap is shrinking as
retailers streamline payment methods including Google Pay and
Apple Pay, store billing and shipping information for loyalty
members and tailor merchandise suggestions to users.
For the months of November and December, mobile spending is
set to hit a record $128.1 billion, up 12.8% from last year,
according to Adobe Analytics, which keeps track of the type of
devices that use Adobe's software to help power more than 1
trillion visits to U.S. retail sites.
Gen-Z consumers, who are comfortable shopping and comparing
prices on their mobile phones, are driving the shift toward
mobile spending, and are likely to influence their families to
do the same over Thanksgiving, noted Minkyung Kim, Assistant
Professor of Marketing at Carnegie Mellon University's Tepper
School of Business.
Mobile spending -- transactions made on a smartphone,
tablet or laptop -- is expected to account for 53% share of
online spending in November and December, totaling about $128.1
billion to surpass last year's record high expectation of $113
billion, Adobe said.
Thalia LeBlanc, 33, said "nine times out of 10" she is
shopping on Target ( TGT ) or Nordstrom's ( JWN ) retail apps from her phone or
iPad. LeBlanc plans to spend $2000 on gifts for her family
throughout the holiday season, with most of her purchases being
on Amazon's ( AMZN ) app.
Convenience is a significant factor for shoppers who want to
avoid long lines and crowded stores on Black Friday and
throughout the holiday season. In the first 24 days of November,
51.6% of online shopping happened on a mobile device, an
increase from 49.5% during the same time period last year,
according to Adobe Analytics.
U.S. shoppers spent $39.9 billion through their phones,
tablets and other mobile devices during that time, a 13.3%
year-over-year increase, Adobe Analytics said.
The ease of shopping from mobile apps is also enticing
shoppers to spend more money and make frequent purchases at
their favorite retailers.
LeBlanc said apps from retailers like Amazon ( AMZN ) and
Nordstrom ( JWN ) make it easier for her to shop and complete
other tasks, like paying off store-branded credits cards.
LeBlanc, a Dallas, Texas resident, said exclusive deals and
discounts also give her a reason to revisit the shopping apps.
Surf apparel brand Roxy said 60% of its web traffic is from
mobile devices and most purchases come from loyalty members.
"The average basket is higher on the app and the conversion
rate is also higher," said Nur Ghossien Martin, a retail
information technology director at Roxy's parent company
Boardriders. Roxy's average basket size on its app is 85 euros
(USD $89) compared to 80 euros (USD $83.80) on its mobile
website, according to Ghossien Martin.
She said in previous years, the company has launched deals
to get more shoppers to download the Roxy app during the
holiday.
Amazon ( AMZN ) is known as a leader in mobile shopping given the
capabilities of its online store. Ahead of the holidays, the
company expanded its generative AI chatbot Rufus and launched
Amazon Haul, its low-priced store set to compete with Shein's
and PDD Holdings ( PDD ) to sell $12 dresses and $10 toys. The catch:
shoppers can only access Amazon Haul through the e-commerce app.
Bringing that exclusivity of Amazon Haul to the app shows
there is more room for growth in encouraging consumers to shop
from their phones, said Melissa Minkow, global director of
retail strategy at consultancy CI&T. She said "habitual"
purchases on Amazon ( AMZN ) are likely to encourage more shopping on its
mobile app.
Even as Amazon ( AMZN ) lures mobile shoppers with cheap holiday
merchandise, Schwartz said Salesforce ( CRM ) is seeing "more high
ticket item buyers transacting on their phones" due to retailers
giving detailed product descriptions and better mobile apps and
websites.
Typically, retailers including Amazon ( AMZN ) and Mango will boost
capacity and stress-test their websites and apps in the weeks
leading up to the holiday season in preparation for an influx of
bargain-hungry shoppers.
The boost in online traffic makes it "even more imperative
for brands and retailers to invest in mobile-first technology,"
Schwartz said.