2017 Holiday Shopping Report
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2017
Holiday Shopping ReportStrong year-over-year growth driven by a surge in mobile use, male and millennial shoppers
2017 Holiday Shopping Report
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2017 just may be seen as a pivotal year for retail. From stores closing at record rates to major brands placing increased focus on their e-commerce channels, there has been a feeling of an industry in shift. This isn’t to say that it’s all bad news for retailers—in fact, online sales grew 15 percent in Q3.
That’s why it’s so important for retailers to stay attuned to progressive consumer shopping behavior and leverage those emerging trends to align with consumers in order to win their business. All eyes were on the biggest shopping weekend of the year to see what trends emerge ahead of the new year.
2017 Holiday Shopping Report
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2017 Holiday Shopping Report
The “Amazon Effect” Continues to Snowball
The dominance of Amazon continues. Their
ability to beat nearly everyone on price is one
reason why they claimed a staggering 45-50
percent of online sales over the four-day
holiday weekend.
This price pressure creates an ever-present
need for retailers to provide deep discounts
to compete. And it’s why two-thirds of retail
executives predicted promotions playing an even
bigger role in 2017’s holiday season.
However, persistent discounts only condition
customers to expect lower prices and can impact
the perceived value of that product—or the price
integrity of those items. Offering consumers a
superior shopping and customer experience
without resorting to constant discounts is going
to to be the best way to compete in the age of
the “Amazon Effect.”
Shoppers Are Still Spending, But Also Searching for Stress-Free Credit Alternatives
While shoppers are still on the hunt for the best
holiday deals, many stress over how they’ll cover
holiday spending. Affirm conducted a survey of
1,000 U.S. adults prior to the holiday weekend
about their shopping habits. 61 percent reported
that holiday spending is a source of marital
or familial strife. Over a third (34 percent) said
they’re worried about how they’re going to afford
holiday spending costs.
Much of this worry arises from the uncertainty
that comes with credit cards. 15 percent of
respondents said that they have maxed out a
credit card just to cover holiday purchases, while
58 percent who used a credit card last year don’t
know how much they ultimately paid in interest
charges. Deferred interest credit products,
particularly pervasive during the holiday
shopping season, only adds to the confusion.
In another recent survey of 1,600 U.S. adults,
we asked about their use and views of deferred
interest credit cards (e.g. 0% APR for 12 months).
One of the top three reasons respondents
reported using them was for holiday-related
purchases. Yet, 67 percent of respondents
believe that some credit products are designed
to purposefully cheat consumers. 55 percent
also said that they would think less favorably of
a brand that offers financial products that are
known to harm some consumers.
Paying Over Time is a Better Experience for Many Shoppers
No wonder 87 percent of consumers have
expressed interest in a simple way to pay over
time that is not a credit card. 68 percent also
cited “knowing exactly how much I’ll owe and
when, including interest,” as the most appealing
element of a simple credit card alternative.
It’s reasons like these that more shoppers are
turning to Affirm. Not only does our unique
underwriting model approve 126 percent more
than industry averages—especially those
underserved by traditional credit or those
deemed credit invisible—but it’s our predictability
when it comes to spending that keeps
25 percent of users coming back to use
Affirm again.
That’s because what Affirm users see is what
they get. There aren’t any of the hidden or
“gotcha” fees that most credit cards have.
Affirm charges no late fees or any penalty fees.
Ever. We show users upfront the amount they’ll
owe, each month and in total, including interest
charges. It’s that simple.
2017 Holiday Shopping Report
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Affirm’s 2017 Holiday Shopping Results
Strong Year-Over-Year Growth Driven by a Surge in Mobile Use, Male and Millennial Shoppers
We had an unprecedented holiday weekend, shattering expectations and seeing huge year-over-year
growth. Shoppers flocked to our retail partners and took advantage of the ability to break down their
holiday purchases into transparent, and more manageable, monthly payments. This was true for both
the total number of purchases made with Affirm, as well as the total amount shoppers spent.
For the entire holiday weekend, beginning on Black Friday and ending Cyber Monday, the number
of purchases made with Affirm increased by 115 percent over 2016, while the total amount shoppers
spent on holiday purchases rose by 91 percent.
2017 Holiday Shopping Report
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Black Friday & Cyber Monday Spending
Shoppers Spent More This Year Than in 2016
Black Friday saw an astounding 124 percent
increase in the total number of purchases
made than in 2016, while shoppers spent an
eye-popping 106 percent more on gifts and
goods.
Cyber Monday saw similar results. 110
percent more purchases were made with
Affirm leading to 81 percent more sales
volume than last year.
The number of purchases increased exponentially
Leading to a spike in total dollars spent
2017 Holiday Shopping Report
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The peak hours of shopping for both days
were similar, with some notable differences.
Black Friday actually peaked later this year at
1 p.m. to 2 p.m EST instead of before noon
at 11 a.m. to 12 p.m. EST in 2016. Conversely,
Cyber Monday peaked earlier at the 9 p.m. to
10 p.m. EST hour, whereas it climaxed an hour
later last year.
Black Friday & Cyber Monday Spending
Peak Hours of Shopping Were later for Black Friday & earlier for Cyber Monday
2017 Holiday Shopping Report
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Mobile vs. Desktop Mobile continues to be the preferred platform for Affirm
users, outperforming industry averages once again.
Interestingly, but perhaps unsurprisingly, men waited just
a bit longer to finalize their shopping on both days. Men
peaked at 12 p.m. EST on Black Friday, while women got the
bulk of their shopping done at 11 a.m. EST. Similarly, women
had their busiest Cyber Monday shopping hour at 10 p.m.
EST while men waited slightly longer, peaking at 11 p.m EST.
Similar to 2016, Affirm users heavily favorited mobile over
desktop. In fact, mobile use increased by 14 percent on
Black Friday for a 73 percent share of all purchases made.
While mobile accounted for slightly less of the total share of
purchases made—perhaps because many shoppers were
back behind their desks—mobile use actually grew by 25
percent, accounting for 66 percent of all purchases made.
Black Friday & Cyber Monday Spending
BLACK FRIDAYAVG. PURCHASE TIME
CYBER MONDAYAVG. PURCHASE TIME
Men Waited Longer to Buy
BLACK FRIDAY CYBER MONDAY
2017 Holiday Shopping Report
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Men made more purchases with Affirm over
Black Friday and Cyber Monday and also
spent more. Their average order values
were consistently higher than women
leading to a significantly larger share of
dollars spent on both days.
* We recognize gender as a protected class and do not collect data on gender. We use an open source statistical probability model to infer
Holiday Shopping by Gender*
2017 Holiday Shopping Report
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Women and men both favored spending on furniture and
homegoods throughout the holiday weekend, accounting
for 41 percent of all purchases made but only 22 percent of
men’s. Instead, consumer electronics was a close second
for men and may account for why men ended up spending
more. They even outspent women on jewelry. Meanwhile,
women chose to buy apparel over electronics, and also
spent on travel-related purchases.
Yet, women turned out to be the savvier shoppers over the
weekend, favoring mobile over men. 74 percent of women
chose to checkout with mobile, in contrast to 69 percent
of men.
Holiday Shopping by Gender
Women Favored Furniture While Men Spent More on Electronics and Jewelry
Women Used Mobile More Over the Holiday
2017 Holiday Shopping Report
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Both Millennials and late Gen Zers spent more with
Affirm this year. The number of Millennials (24-34) who
leveraged Affirm to make holiday purchases increased
by 15 percent over the entire holiday weekend. But it
was Gen Z who saw the biggest lift—57 percent more
shoppers between 18 and 21 years-old spent more this
year over 2016.
The older generations, however, actually spent more on
average per purchase. Over the four-day weekend,
Gen Xers (35-51) spent an average of $702 on purchases
while Baby Boomers (51+) spent an average of $690
per purchase.
Holiday Spending by Age
TOTAL SALES VOLUME FOR 2017 HOLIDAY WEEKEND
Millennial & Gen Z Sales Volume Grew This Year
But Gen X and Boomers Bought more large ticket items over
the holiday weekend
Gen X(35-51)
Millennial(22-34)
Gen Z(>21)
Boomer (52+)
$558
$639
$702
$690
Affirm is modernizing consumer credit and changing
the way people shop. We partner with 1,000+ retailers
to enable consumers to buy what they want today
and pay over time—boosting conversion rates
and AOVs. Our simple and transparent financing
options (no hidden fees, no compounding interest)
improve customer satisfaction, driving up repeat
purchase rates. We also enable retailers to expand
their consumer reach: Our advanced underwriting is
designed to reach those overlooked by the traditional
credit system. With a lightning-fast, mobile-first UI,
we’re built to seamlessly integrate with your checkout
flow and make purchasing quicker, simpler, and more
consumer-friendly.