U.S. consumers spent more this holiday season while simultaneously changing how they shopped.
More customers are turning towards thrift stores, discount retailers and fewer impulse purchases as economic factors shape consumption behavior, The Associated Press reported.
Shoppers continue to open their wallets despite concerns about inflation, interest rates and household budgets. However, they are shopping intentionally. Data from Mastercard SpendingPulse and Visa Consulting & showed that total holiday spending using cash and cards increased modestly from 2024 levels.
At the same time, shoppers demonstrated increased caution. Traffic at thrift stores rose sharply in the days leading up to Christmas, with visits climbing nearly 11 percent compared with the same period last year, AP News reported. Consumers also favored off-price retailers, including chains that emphasize discounted apparel and household goods.
Another notable shift was a decline in pre-Christmas returns. According to data cited by AP News, return rates between Nov. 1 and Dec. 12 fell about 2.5 percent from the same period in 2024. Shoppers appear to be planning purchases more carefully, buying fewer excess items and sticking closer to budgets. Vivek Pandya, lead analyst at Adobe Digital Insights, told the Associated Press that consumers are making wiser choices this holiday season.
“I think it’s very indicative of consumers and how conscientiously they’ve purchased,” Pandya said. “Many of them are being very specific with how they spend their budget.”
ABC News reported similar trends, noting that early holiday data pointed to more intentional spending patterns, including increased secondhand shopping and fewer returns before Christmas. Retail experts interviewed by the outlet said consumers were reacting to economic uncertainty by prioritizing value and durability over novelty.
Online shopping remained strong, though brick-and-mortar stores continued to account for the majority of sales. While e-commerce played a significant role, many consumers still preferred in-store shopping, particularly at discount and resale outlets where price comparisons are easier to assess in person.
Retailers now anticipate a post-holiday surge in returns, though the volume may be lower than in previous years due to more deliberate purchasing.
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