NEW YORK, April 30, 2020 /PRNewswire/ -- Klarna, a leading global payments and shopping provider, today released new data that show warehouse clubs saw a 16% week-over-week increase in transactions made through the Klarna app, which allows consumers to shop from any online store, in the week ended April 25. Warehouse clubs saw their second-best day of the year on April 23, behind only the Friday before most of the US went under some kind of quarantine. In addition, home and garden sales continued their upward trend for the sixth week in a row as Gen Zers, millennials and Gen Xers continued to shift share of wallet toward the category.
"We know US consumers have been focusing for several weeks on items that will make their home life more pleasant and comfortable as they wait out partial quarantines aimed at slowing the spread of the coronavirus," said David Sykes, Head of US at Klarna. "Our most recent weekly data show that consumers are embracing buy now, pay later options when they shop at warehouse clubs and home and garden stores. That indicates that people are still concentrating on improving their home environments, even as retail and other businesses begin to return to normal in a number of markets across the US. Stay-at-home orders are being lifted, but people still seem to be planning to stay in most of the time."
Home and garden purchases made by Gen Zers, millennials and Gen Xers through the Klarna app continued their upward trend in the week of April 19-25, according to Klarna's transaction volume data. Klarna has been analyzing share of wallet, or how its app users are dividing their spending among different shopping categories, week by week to identify what product categories Gen Zers, millennials and Gen Xers are shopping for most often using Klarna's flexible payment options and how they are shifting their e-commerce spending as the coronavirus pandemic wears on.
Klarna app users' share of spending on home and garden items-such as furniture, tools and home improvement, pet supplies, kitchenware, plants and flowers, and cleaning products-grew by a whopping 40% among Gen Zers, by 4% among millennials and by 2% among Gen Xers week over week in the week ended April 25.
Over the coming weeks, Klarna, which serves 7 million consumers in the US and 85 million consumers globally, will continue to analyze transaction data weekly to identify how the coronavirus outbreak is affecting e-commerce and consumer shopping behavior.
Other Key Findings
Klarna analyzed purchase volumes for items bought through the Klarna app, which allows consumers to shop at any online store, for the weeks of April 19-25, April 12-18, April 5-11, March 29-April 4, March 22-28, March 15-21 and for an average week based on the five-week period covering February 1-March 7, 2020. The data were distributed as share of total, and did not account for any increases or decreases of volume within any of the age groups analyzed-Gen Zers ages 18 and older (born 1997-2002), millennials (born 1981-1996) and Gen Xers (born 1965-1980). The data indicate only the distribution of purchase volumes among the following categories for each age group:
We make shopping smooth. With Klarna, consumers can buy now and pay later, so they can get what they need today. Klarna's offering to consumers and retailers includes payments, social shopping and personal finances. Over 200,000 merchants, including H&M, IKEA, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch, Nike and AliExpress, have enabled Klarna's innovative shopping experience online and in-store. Klarna is the most highly valued fintech in Europe, with a valuation of $5.5 billion, and one of the largest private fintechs globally. Klarna was founded in 2005, has over 3,000 employees and is active in 17 countries. Klarna's North American offices are in Columbus, Ohio; Los Angeles; and New York. Klarna Credit is issued by WebBank, member FDIC. For more information, visit klarna.com.
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SOURCE Klarna Bank AB