Consumer Behavior
Discount retailers big holiday shopper focus
October 21, 2025
Nearly three-quarters of U.S. consumers, 73%, will shop at discount retailers this holiday season, according to a VTEX research report.
"Last holiday season was dominated by Shein and Temu. But with tariffs and higher costs reshaping the playing field, this year could be the moment for American discount retailers to win big," Mariano Gomide de Faria, founder and co-CEO at VTEX, said in a press release on the findings.
Millennials showed the strongest intent, with 53% saying they are very likely to make discount stores part of holiday shopping.
Social media is also fueling purchase decisions — more than one-quarter of respondents (28%) said they had been influenced by TikTok or Instagram holiday shopping content featuring discount stores, a number that rises to 52% among Gen Z.
"Discount store chains are no longer holding an advantage with their competitive pricing alone," Gomide de Faria said in the release. "They have continued to take noticeable share from Amazon and the big-box giants on value, while social media apps such as TikTok have turned dollar stores into discovery engines for Gen Z. At the same time, Gen X and millennials, already familiar with these formats, continue to rely on discounters as trusted destinations as the heavy cost of daily life requires them to keep holiday spending in check."
