New Study Reveals Gen X’s Big Spending Power and Overlooked Needs

NEW YORK, NY — New research highlights the significant purchasing power of Generation X, those born between 1965 and 1980, who contribute to a staggering 31% of all retail spending despite making up just 19% of the U.S. population. The study, conducted by the International Council of Shopping Centers (ICSC), finds that this often-overlooked demographic drives substantial sales both online and in-store.

Stephanie Cegielski, ICSC vice president for research and PR, shared insights with Marketing Daily about the research findings. Initial skepticism turned into surprise as Cegielski learned that Gen X is responsible for a third of consumer spending. ‘I was even a latchkey kid. But we’re so often forgotten,’ Cegielski noted.

The ICSC analyzed $5 trillion in purchases from 426 retailers over five years, uncovering the unique challenges Gen X faces. About 74% of this group are caregivers, balancing the care of aging parents with supporting children, which Cegielski pointed out affects their spending habits significantly.

Interestingly, while thrifting appears trendy among younger generations, Gen X spends twice as much on secondhand clothes. Despite their perceived apathy, they exhibit more optimism than baby boomers and remain brand loyal, with over half reporting stronger brand loyalty in the last five years.

Gen X prefers practical solutions that improve convenience, with 80% regularly using self-checkout kiosks and two-thirds relying on mobile apps and social media platforms for shopping.

However, there is a significant gap in marketing outreach, as only 5% of influencer marketing budgets target this generation. Cegielski believes this will change, citing brands like E.L.F. and Stripes Beauty, which is co-founded by Gen X actress Naomi Watts, that are starting to address Gen X women’s needs directly.

Despite their worries about retirement and family support, Gen X continues to spend, illustrating a complex economic and social portrait of this generation. ‘They feel squeezed and stressed,’ Cegielski adds, reflecting the broader concerns impacting their spending power.