Brands are enticing shoppers to spend more by offering more limited-time sales.
For retail lovers, nothing beats the excitement of coming across a great deal, and whether it’s a TikTok shop or discounts on Instagram’s digital boutiques, a bargain always seems to be within shoppers’ reach.
A digital trend called “thrifting,” which involves spending more money and saving more overall, is spreading online.
“Brands have always done their best, but the levers they have at their disposal are now greatly enhanced because of the technology and data available to them,” Natasha Knox, financial planner and founder of Alaffia Financial Wellness, told ABC News.
Despite inflation, Americans are still spending money, with credit card debt reaching $1.2 trillion, according to the Federal Reserve Bank of New York’s first quarter financial report.
Meanwhile, online promotions are up 26% compared to the same period last year, according to Numerator.
Knox explained that “advanced technology that understands our specific purchasing patterns and habits” is making it even easier for shoppers to spend.
Kristen Klein, a mother of two, told ABC News that “sparring” is a trend she’s heard more and more about online in recent years.
“About half the time, maybe a little more, I try to spend money on savings. I think especially in the last couple of years, I spend a lot more on TikTok and online and Instagram advertising,” she said. “It’s really appealing.”
Klein says she “doesn’t mind spending a lot” on ordering basic necessities, but she also sometimes spends money simply because something seems like a good deal.
“They’re like, ‘This is going to sell out,’ and last time it did, so I was always like, ‘Oh, I’ve got to buy this,'” Klein recalled. “So I’ve sent a lot of the things I’ve bought that I might not really need to my daughter.”
When it comes to spending and saving, or quitting altogether, Knox suggests being realistic.
“For example, if it’s a consumable item that you use regularly and can budget for, then it makes sense,” she says, “but if it’s something that you didn’t plan for – that you end up buying two in order to get a third for free, then most importantly, if you haven’t accounted for it or budgeted for it, then that’s a problem.”
