Millennials Are Killing Department Stores This Holiday, According To An Economist

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Where do you buy holiday gifts for your family and friends? If you’re anything like us, you’re likely to say Amazon or the online version of your favorite stores like Macy’s and H&M. We not only get that, but we’re with you — who wants to haul 10 gift boxes home? Well, one economist told CNBC that millennials’ preference for online shopping could spell trouble for department stores.

Diane Swonk, economist at DS Economics, spoke with reporters at CNBC’s “Trading Nation” about millennial spending habits around the holidays and how they’re negatively affecting department stores. “[Department store execs] can’t seem to lure into the department stores those millennials,” she told CNBC. “The move from bricks to clicks, and the hybrid of the two is going to be a real problem.”

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A recent National Retail Federation survey found that not only are 39 percent of consumers aged between 25 and 34 planning to spend more money this year as compared to last year, but that their major destination is — yep — online shopping.

“The department stores are really being left behind,” Swonk said. “Overall, spending will do great this holiday season, but will it be enough to sort of stave off some bankruptcies going forward? I don’t think so.”

We can’t help our love for Amazon Prime, okay?! While Swonk is correct that we’re leaning heavily into online shopping, we’re unapologetic about our choices. Convenience overrides keeping the struggling Macy’s open in our already-dying shopping malls. RIP department stores?

Watch what Swonk has to say below:

Strong economy points to holiday retail cheer, but not for all: Diane Swonk from CNBC.