Consumer Behavior
Consumers feeling a bit Grinch-like this holiday season
October 20, 2025
Consumers will spend an average of $1,595 this holiday season — reflecting a 10% drop compared to the 2024 holiday season.
The holiday spending decline comes at a time of economic uncertainty with more than three-quarters of consumers expecting higher prices on holiday items and 57% expecting the economy to weaken in 2026, according to a Deloitte study "The 2025 Holiday Retail Survey."
It is the least optimistic outlook since Deloitte started tracking economic sentiment in 1997, according to a press release on the study's findings.
Additional findings include:
- GenX shoppers appear to be in a slightly better position as they plan to increase their spending by 3% this year.
- Consumers plan to exhibit value-seeking behavior by searching for deals (89%), trading down on brands and retailers (77%), reusing or recycling items (73%), and making DIY gifts (49%).
- Two-thirds (68%) of respondents plan to use digital tools for their holiday shopping including to compare prices and products.
"While the upcoming holiday season is marked by economic uncertainty, the pull of tradition seems to have many consumers doing all they can to spread holiday cheer. This includes seeking out value and expanding the shopping window to ensure they capture the best deals to make their holiday dollars go further. To meet and engage shoppers where they are, retailers that provide value, not just the lowest price could be positioned for a more successful holiday season and 2026," Natalie Martini, vice chair and U.S. Retail and Consumer Products sector leader, Deloitte, said in the release.
