Christmas might, well, feel a bit different this year.
A recent WalletHub report indicates that nearly two-thirds of Americans believe the economy will make the holidays less enjoyable. It seems many are bracing for a tighter budget due to concerns over rising inflation, a slowing job market, and increased costs from tariffs.
According to the survey, 85% of respondents expect to spend the same or even less than last year, and around 60% plan to donate less to charitable causes.
Moreover, about one in three individuals intends to apply for a new credit card just to manage holiday shopping, while nearly half admit they won’t finish paying for gifts on time.
Quite revealing, one in four respondents is still trying to pay off debt from last year’s celebrations, as found in the WalletHub survey.
“This suggests that some people are likely planning to tighten their financial belts this holiday season,” says Chip Lupo, an analyst at WalletHub.
“Even if you spend the same or less, it doesn’t necessarily mean you’ll get the same value in return, especially since many prices are climbing,” he added.
That said, consumers did spend an impressive $11.8 billion online on Black Friday—a 9.1% increase from last year and slightly exceeding expectations, according to Adobe Analytics.
As Vivek Pandya, Director of Digital Insights at Adobe, points out, “The scale of discounts available drove significant online demand.” He notes that shoppers are increasingly waiting for big promotional events to make their purchases.
Adobe revealed that online spending peaked at around $12.5 million every minute between 10 a.m. and 2 p.m. Interestingly, more than half (55%) of online transactions were made via mobile devices—a 10.2% rise—indicating a surge in spontaneous purchases.
There was a notable uptick in sales of electronics, appliances, and toys during the Black Friday shopping spree.
Some experts believe that panic buying in electronics and apparel categories is expected due to looming tariffs, as most items in these sectors are imported.
Shopping behaviors have shifted, with year-over-year increases in traffic from shoppers clicking on links, up by 805%. Those arriving at retail sites through links were 38% more likely to make a purchase.
In a sign of the times, “buy now, pay later” options surged by 8.9% compared to last year’s Black Friday, translating to approximately $747.5 million in online transactions.
Nonetheless, in-store traffic on Black Friday dropped by 3.6% nationwide, per RetailNext analysis.
“Shoppers are still making purchases; however, they are doing so with more deliberate intentions,” notes Joe Shasteen, global manager of advanced analytics at RetailNext. “They’re waiting for the right prices and spreading their shopping over extended promotional periods, approaching stores with a clearer purpose than in previous years.”
Interestingly, Kathryn Black, who observed the shopping scene at Westchester Mall, remarked, “The morning felt more like a busy Saturday than the usual Black Friday rush.”
RetailNext’s findings suggest that while in-store spending focused mainly on necessities, sectors like home goods, footwear, and jewelry are experiencing more significant impacts.
“We are now in what could be termed the ‘era of value’ in U.S. retail,” Shasteen stated. “Shoppers are keen on finding deals, have adapted to ongoing inflation, and are prioritizing their purchases.”
