Although 2024 was a record breaking year for holiday spending. However, trends going into the 2025 season are indicating that many consumers may be pulling back. Experts have found that middle-income households are experiencing tighter budgets. Additionally, the typical US consumer has seen a 12% decrease in median total assets over the past 3 years. Across generations, different groups are navigating different spending realities, with Generation Z and Millennials seeing the tightest budgets and wealth insecurity.
Due to these findings, experts have pinpointed holiday retail trends to watch for the 2025 holiday season. Early shopping, Buy Now, Pay Later methods, data-driven marketing and domestic travel are amongst the trends dominating this season. This data affects both lenders and retailers from a financial standpoint, preparing for trends going into the heaviest spending season all year. For lenders, this data helps to anticipate the demand for new card originations and higher card balances. Especially due to inflation, some consumers may lean heavier on credit to complete their shopping. For retailers, less savings in shoppers’ packers means less spending. Less disposable income changes the way that people shop and their motivations behind purchasing.
The holiday season has historically been the most popular period for shoppers, however, it is vital to stay sharp to consumer trends to anticipate a volatile market year over year.
Source: Equifax