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Holiday Spending Soars Amidst High Prices
27 Nov
Summary
- Americans plan over $1,000 increase in holiday spending this year.
- 62% of shoppers alter habits due to tariffs and high prices.
- Retail sales projected to exceed $1 trillion this holiday season.
Americans are anticipating a substantial increase in holiday spending, with average expenditures projected to reach $2,800, over $1,000 more than the previous year. This rise in spending occurs as persistent high prices, influenced partly by tariffs, continue to affect consumer budgets.
Consequently, a significant majority of shoppers, 62%, are modifying their purchasing behaviors to cope with these cost pressures. Strategies like seeking sales, buying less expensive gifts, and opting for more affordable brands are becoming prevalent as consumers aim to manage their budgets effectively.
Despite these challenges, the overall outlook for holiday retail sales remains robust, with projections indicating they will surpass $1 trillion. This suggests a strong consumer demand that is expected to continue through the busy shopping period, with Black Friday anticipated to draw a record number of shoppers.
