U.S. consumer behavior during the 2025 holiday season revealed a significant transformation in how Americans approached retail spending, with economic headwinds prompting a shift toward more frugal and calculated purchasing habits. Despite a modest year-over-year increase in overall holiday spending, patterns indicate that many shoppers opted for more affordable and value-oriented retail options rather than splurging at traditional department stores or upscale apparel outlets.
This trend was evident in the surge in popularity of thrift stores, discount retailers, and off-price chains leading up to Christmas. While major retailers still experienced seasonal foot traffic, data showed a relative decline in visits to department stores and mall-based clothing outlets. In contrast, secondhand shops and budget-focused chains saw a notable uptick in customer visits, pointing to a change not only in spending habits but in broader consumer values.
Retail analytics firms reported that traffic to thrift stores jumped significantly in the weeks leading up to the holidays. In the week before Christmas alone, visits to these outlets rose by more than 10 percent compared to the same period in 2024. This increase was not an isolated event, but part of a consistent trend throughout the latter half of 2025, during which thrift and discount shopping gained renewed traction among a wide spectrum of American consumers. Analysts suggest that this shift was driven by a mix of inflationary pressure, economic caution, and a growing cultural acceptance—if not preference—for secondhand goods.
What was once primarily associated with low-income or ultra-frugal shoppers has now expanded to include a broader demographic, including middle- and upper-income Americans. In part, this change reflects a desire to maximize value amid persistent concerns about cost-of-living increases, but it also speaks to the evolving perception of thrift shopping. Today, it is seen not just as a budget-friendly option but also as a savvy, sustainable, and even trendy choice. Social media influencers and eco-conscious consumers have helped popularize the practice, lending thrift shopping a newfound cultural cachet.
Off-price retailers—those offering brand-name merchandise at reduced prices—also reaped the benefits of this shift in spending behavior. These stores saw significant seasonal increases in customer traffic, driven by shoppers looking to balance quality with affordability. With economic uncertainty still lingering, consumers appeared less willing to pay full price for holiday gifts or apparel. Instead, they sought out deals and discounts without compromising on perceived value.
Another telling development was a decline in early-season returns. Historically, holiday purchases are often followed by a wave of returns, particularly in the days immediately after Christmas. But this year, retailers and analysts noted a measurable drop in return rates during November and early December. Data from Adobe Analytics showed a decrease of approximately 2.5 percent in returns compared to the same period last year.
This reduction suggests a more deliberate and strategic approach to gift-buying. Rather than making impulsive or speculative purchases, shoppers appeared to take greater care in selecting items that were both meaningful and likely to be appreciated. This could be the result of tighter budgets prompting more thoughtful spending, or it may reflect a broader cultural shift toward intentional consumption. Either way, the trend points to a holiday season defined less by volume and more by value.
E-commerce also played a key role in shaping this year’s holiday retail experience. Online sales continued their upward trajectory, with a growth rate of around 6 percent over 2024. Consumers increasingly relied on digital platforms not only for convenience but also to compare prices, check product reviews, and make more informed choices. These tools may have contributed to the lower rate of returns, as shoppers were able to conduct more research before making purchases.
Retailers across the spectrum are taking note of these developments. Some traditional stores have responded by expanding their discount and clearance offerings or partnering with secondhand platforms to appeal to cost-conscious consumers. Others are refining their e-commerce operations to offer more seamless omnichannel experiences, recognizing that the digital storefront is now just as critical as the physical one. Companies are also investing in loyalty programs and personalized promotions to retain customers in an increasingly competitive landscape.
These changes are not isolated to the holiday season but may signal a more enduring realignment of American consumer behavior. With economic indicators remaining mixed and inflation still a concern for many households, shoppers are likely to continue seeking value and meaning in their purchases well into the new year. The 2025 holiday season may have marked a turning point—one where spending was guided less by tradition and more by pragmatism, sustainability, and digital fluency.
In the face of evolving expectations and economic challenges, retailers that can adapt to these shifts will be better positioned to thrive. Whether by embracing the thrift economy, enhancing digital experiences, or offering curated discounts that feel both personal and practical, the future of retail appears to be grounded in flexibility and consumer-centric innovation.
