California has an abundance of stores that buy back their clothing — namely Eileen Fisher, and Canada Goose. Others resell high-end clothing such as The Real Real.

Last week, California Governor Gavin Newsom signed legislation requiring apparel companies to accept unwanted clothing. The state will have the nation’s first mandatory take-back program.

Under the new law, companies that make clothing, footwear and textiles — including drapes, towels and bedding — must create a nonprofit by 2026 that would set up collection sites at thrift stores, and begin mail-back programs by 2030.

Consumers this holiday season said they will turn more toward resale items. Some 45% of consumers are trying resale and used products — up 7% from 2023 — and 31% are exploring rental programs — up 5% — according to holiday data released from PwC.

A breakdown by generation shows Millennials are the strongest believer of shopping more for resale, upcycled or used product.

• Gen Z: 57% agree / 43% disagree
• Millennial: 58% agree / 42% disagree
• Gen X: 45% agree / 55% disagree
• Baby Boomers: 21% agree / 79% disagree

Gen Z is spending more on travel these days — and on themselves — during the holiday season, says Kelly Pedersen, retail lead at PwC U.S.

 “A lot is probably promotion driven, rather than gift giving,” he says. “Store traffic continues to increase. Gen Z, although they are digital natives, they love to go into stores. A lot of the increase in traffic is generated by Gen Z. Not only shop, but for a social outing with friends and to experience products.”

Comparison shopping has seen an uptick in 2024, particularly across online marketplaces, brand websites and in stores, according to the data, as consumers anticipate financial pressures. Technology lets consumer research items across channels like generative AI chatbots, search engines, brand websites, online marketplaces, and social media.

This trend is pronounced among Gen Z and Millennials, who engage with multiple research channels more frequently than other generations. Gen Z leads with 50% using GenAI channels during this phase, compared with 29% of Baby Boomers.

The payment method of choice has shifted, with 65% saying they will pay for holiday purchases with a debit card, 58% said they will use cash, and 55% saying they will use a credit card.

Holiday shoppers on average expect to spend $1,638 more this year — up 7% compared with 2023, up 15% from 2022, and up 38% from 2015.

The data comes from a PwC survey describing the outlook and what marketers can expect.

PwC described the 2024 holiday season as “strategic spending, personalized experiences and technological integration,” based on the survey of 4,000 consumers who were asked about their priorities for the holiday season.

The uptick masks a behavioral change, according to the results. Inflationary costs have impacted consumers who have become more selective in their spending. Despite this group’s decision to spend more, 59% cite inflation and 57% describe their financial situation as strained.

The first thing I thought about when Pedersen said the data shows an increase in gift-card spending as a way for those giving gifts to better control their money and inflationary costs was passing the buck. Some 65% of consumers plan to buy card gifts for others this holiday season, the data shows.

About 29% of consumers said they will spend less this year compared with last year — up by 10% from last year and the highest percentage noted since the survey began in 2020. Just 26% of consumers will spend more this year — down 9% from last year — the lowest number seen for this study.

Those who say they will spend more this holiday season are allocating $3,076 — up 33% from 2023 — while those planning to spend less expect to spend $776.

In 2015, 70% ranked price as the primary driver on spending choices. This year, 89% cite the price of items as an important factor.

Gen Z has increased in shopping and buying power this year compared with prior years, and many retailers have begun to experience this shift, says Pedersen, who calls it a typical cycle.

Gen Z shoppers are offsetting generations that plan to spend less, Pedersen says.

• Millennials will spend the most on average — $2,222, up by 16% from last year
• Gen Z said they will spend on average $1,752, up by 37% from last year
• Millennials plan to spend $2,222, up by 16% from last year
• Gen X plan to reduce their budgets by 9% with average spends of $1,454
• Baby Boomers plan to reduce their budget by 6% with average spends of $1,454

Men overall plan to spend $2,018 — a 13% increase compared with last year — while women plan to spend $1,292, the same amount as they did in 2023.

Holiday shopping is projected to rise 7%, although 57% of respondents to a PwC survey describe their financial situation as strained.