That’s a Wrap: Afterpay’s Insights from the 2021 Holiday Shopping Season

Partywear, pets, and a festive “homecoming” for in-store shopping marked the 2021 holiday shopping season. More people shopped outside their homes and beyond their usual categories, using Afterpay in-person at their favorite retail stores.

Each year, we dive into the data from Afterpay users and merchants to find the leading holiday shopping season trends, from where people shopped to what they bought. Here are the top six trends from 2021, plus advice for retailers as they prepare for the year ahead. 

1. In-store shopping returned

2021 saw an in-store shopping growth of 384% year-over-year, with a 442% increase on Black Friday alone. Last year, consumers embraced ecommerce and BOPIS (buy online, pick up in store) to check off their holiday shopping lists. While online shopping remained strong, more consumers were open to visiting their local malls and shops to browse and buy in-person. This is good news for merchants with brick-and-mortar locations. As Omicron may dampen social activities for a few more weeks, expect a bustling spring shopping season. 

2. Mobile-first shopping drove referrals

This season, we invited shoppers to “Afterpay it” with their holiday shopping lists–and they did. Consumers discovered new brands and products via Afterpay, driving a 41% increase in referral traffic to merchants. More than 90% of those referrals came from the Afterpay mobile app. Much of that was driven by young shoppers, with 11% more Gen Z consumers shopping our platform year-over-year between Black Friday and Cyber Monday.

3. Shoppers favored convenience and variety

Department stores, a retail format that had lost favor among younger shoppers in recent years, saw a resurgence this season. Shopping with department stores was up 256% year-over-year, in part due to the convenience of finding gifts for everyone in the family all at one place. Consumers also turned to gift cards to ease the holiday shopping burden, especially given the ongoing supply chain issues - spending on gift cards multiplied 50x year-over-year.

4. People got out in style

The return of holiday office parties and social gatherings drove an uptick in spending on partywear. Shoppers sought to dazzle, with velvet and sequin clothing increasing 188% and 146% year-over-year, respectively. Glamorous outfits like these have the added benefit of helping people feel more confident and outgoing–traits that will help us all ease back into social events in 2022. Consumers also boosted their confidence by hitting the slopes, with a 10x increase in spending at ski and snow merchants. 

5. Pets were pampered 

From leashes and collars to bespoke bowls, consumers upgraded their pet’s apparel and accessories this season. Quarterly sales in the pet category were 376% - a strong indicator that more consumers are using Afterpay for more than just their apparel and beauty spending. Expect this category to continue growing as people further integrate their furry companions into their lives this year.

6. Not to be forgotten: home makeovers

Holiday outings aside, consumers still spent a lot of time at home. Spending in the home goods category grew 49% year-over-year. During the busy Black Friday and Cyber Monday period, leading items included air fryers, candles, and coffee makers - up 22% year-over-year. As cold weather and Omicron loom over the next few months, expect this category to continue to perform well. 

6. Inclusivity is in

Gender-fluid and gender-inclusive clothing continued to grow as a category. Sales for products described as “unisex” grew 57% year-over-year as more brands expanded their gender-fluid and unisex product lines. Shoppers also gravitated toward diverse businesses for their holiday shopping, with more than a half a million customers supporting Black and female-owned businesses.