The holiday season is an important time of year for consumers and retailers in business. In order to be truly prepared, it is useful to pay attention to consumer finance data and patterns. Let’s explore holiday season shopping trends below.
Consumers are approaching the 2025 holiday season with more caution than they did in 2024. This is especially true for young Americans. In fact, holiday spending for Gen Z is down 23% from 2024.
There are several explanations for increased consumer caution. For one, middle-income Americans are experiencing tighter budgets, as the cost of necessities has outpaced the increase in income. More specifically, the cumulative change in cost of spending for necessities has gone up 31.6% since 2021, while income has only increased by 22%.
However, Americans still want to spend on their loved ones. 82% of consumers say that they will try to save on essentials like groceries to cover holiday expenses. Consumers are also shopping earlier and turning to Buy Now, Pay Later plans to manage their finances.
Another emerging trend is a preference for personalization and data-driven marketing. Consumers are seeking out companies that offer personalized experiences. On the company’s side, working personalization into the mix can boost revenue.
These patterns are important information for retailers, as it can help them adapt and meet consumers where they are at. The holidays are a busy time of year, so even a small amount of preparation goes a long way in finding success.
Source: Equifax