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Holiday Spending Trends Show Caution Among Consumers

Shoppers exploring holiday deals in Dallas

Dallas, TX, November 29, 2025

Recent studies reveal a significant decline in holiday spending among consumers this year, with forecasts indicating a 10% drop from 2024. Factors such as economic uncertainty, inflation, and fears of a recession are prompting Americans to be more cautious in their expenditures. Retailers will need to adapt their strategies to meet these changing consumer behaviors and ensure continued engagement during the holiday season.

Dallas, TX

Holiday Spending Trends: Caution in Consumer Expenditures

Consumers are expected to reduce their holiday shopping expenditures this year, according to recent studies.

Recent studies indicate that consumers are expected to spend less on holiday shopping this year, with Deloitte’s 2025 Holiday Retail Survey projecting an average of $1,595, representing a 10% decrease from 2024. This marks the first anticipated decline in U.S. holiday spending since 2020, driven by economic uncertainty and persistent inflation.

A separate PwC survey anticipates Americans will reduce their holiday expenditures to an average of $1,552 per person, a 5% decrease from 2024, indicating that this trend could represent the largest drop since the pandemic began.

Factors Influencing Reduced Holiday Spending

Several factors are contributing to this trend:

  • Economic Uncertainty: Many consumers expect the economy to weaken further in 2026, leading to a more cautious approach to spending.
  • Inflation: Rising costs are prompting consumers to prioritize value and discounts, with many actively seeking deals and making brand trade-offs.
  • Recession Fears: Concerns regarding a potential recession are causing consumers to tighten their budgets and closely evaluate their purchasing decisions.

Implications for Retailers

As spending patterns shift, retailers may need to reconsider their approaches:

  • Emphasize Value: Retailers should focus on competitive pricing and promoting discounts to attract budget-conscious shoppers.
  • Enhance Online Shopping Experience: With online shopping becoming more prevalent, improving digital platforms and offering convenient delivery options can help meet changing consumer preferences.
  • Focus on Experiences: Consumers are increasingly valuing experiences over products, so offering memorable shopping experiences may encourage spending.

Conclusion

The anticipated reduction in holiday spending reflects a more cautious consumer mindset amid economic uncertainties. Retailers must adapt to these changing behaviors to maintain consumer engagement and drive sales during the holiday season. Supporting local businesses and understanding these trends will be crucial for nurturing Dallas’s economic resilience.

FAQ

What is the expected decline in holiday spending this year?

Consumers are expected to reduce their holiday shopping expenditures by 10% compared to 2024, with an average spend of $1,595.

What factors are contributing to reduced holiday spending?

Economic uncertainty, inflation, and recession fears are leading consumers to tighten their budgets and seek value in their purchases.

How can retailers adapt to changing consumer spending behaviors?

Retailers can adapt by emphasizing value, enhancing online shopping experiences, and focusing on providing memorable shopping experiences to attract consumers.

Key Features

Feature Description
Expected Decline in Spending Consumers plan to spend 10% less on holiday shopping compared to 2024, averaging $1,595.
Contributing Factors Economic uncertainty, inflation, and recession fears are leading to more cautious spending behaviors.
Retailer Adaptation Strategies Retailers should emphasize value, enhance online shopping experiences, and focus on providing memorable shopping experiences.

Deeper Dive: News & Info About This Topic

HERE Resources

Recent Developments Impact Dallas Residents
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STAFF HERE DALLAS WRITER
Author: STAFF HERE DALLAS WRITER

The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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