The holidays are historically a period defined by high spending and peak consumer shopping. In order for businesses to prepare for a successful holiday season, it is important to understand current consumer spending priorities and trends for the upcoming year. 2024 was a record-breaking holiday season, however, the pulse of today’s consumer market is indicating a slower season. This conjecture was born from increasing delinquencies, wealth and income volatility, student loan impacts and high savings rates amongst predominant generations. Especially Generation Z and Millennials are beginning to tread lightly.
This data has led to a number of important behavior trends to watch, such as early shopping and Buy Now, Pay Later methods. 80% of all planned holiday spending is expected to occur during periods like Cyber Monday and Black Friday, and many consumers are relying on credit based systems to make their purchases. Domestic travel and personalized marketing are also on the rise, meaning that both lenders and retailers have to remain conscious of the spending power of consumers during this time.
Lenders must anticipate the demand for more card originations and increase credit lines, while retailers have to prepare for consumers to focus on value in their purchases. Overall, less discretionary spending money has changed the landscape for holiday shopping in the year 2025.
Source: Equifax