NEW YORK (AP) — The shopping spree leading up to Christmas is over and, like every year, another one has begun as millions of people hunt for post-holiday deals and line up to return gifts that didn’t fit, or didn’t quite hit the mark.
Holiday spending using cash or cards through Sunday surpassed last year’s surge, according to data released this week by Visa and Mastercard’s Consulting & Analytics division SpendingPulse.
But growing worries about the American economy and higher prices in part due to President Donald Trump’s tariffs have changed the behavior of some Americans. More are hitting thrift or other discount stores instead of malls, according to data from Placer.ai. The firm tracks people’s movements based on cell phone usage.
And they are sticking more closely to shopping lists and doing more research before they buy. This may explain why returns so far are low compared to last year, according to data from Adobe Analytics.
Here are three trends that have defined the holiday shopping season so far:
A weaker holiday season for traditional gift giving
Americans are still spending on gifts, but increasingly that shopping is being done at thrift and discount stores, according to data from Placer.ai.
That’s likely to force traditional retailers like department stores to fight harder for customers, Placer.ai said.
Clothing and electronics, which traditionally dominate holiday sales, saw strong growth but struggled to grow, according to Placer.ai. Both items are dominated by imports and therefore, vulnerable to tariffs.
For example, traffic doubled in department stores during the week before Christmas, from December 15 to Sunday, compared to the average shopping week this year. But the traffic in the week before Christmas this year decreased by 13.2% compared to 2024.
Traffic is up 61% at traditional clothing retailers alone in the week leading up to the holiday compared to the rest of the year. But again, compared to the run-up to Christmas last year, sales were down 9%.
Some of that lost traffic may have migrated to so-called off-price stores—chains like TJ Maxx. That sector had a strong increase in seasonal traffic of 85.1% and an increase of 1.2% in the week before the holiday.
But it was thrift stores that were on fire, with traffic up almost 11% in the week before Christmas compared to last year.
“Whether they were hunting for a designer deal or uncovering a unique vintage piece, consumers have always favored discovery-driven experiences over the standardized assortments of traditional retail,” said Shira Petrack, head of content at Placer.ai, in a blog post Friday.
Thrift stores broaden their appeal
In the past it may have seemed gauche to give your mom a gently used sweater or a pair of pants from a local thrift store, but it seems not so amid all the economic uncertainty and rising prices, according to Placer.ai.
By the second half of 2025, thrift stores have seen at least 10% increases in traffic compared to last year. This suggests that environmental concerns as well as economic issues are attracting more Americans to thrift stores, Placer.ai said. Visits to thrift stores generally don’t go up during the holidays, but over the last Black Friday weekend, sales jumped 5.5%, Placer.ai. reported.
In November, as customer traffic at traditional clothing stores fell by more than 3%, traffic at thrift stores increased by 12.7%, according to Placer.ai.
The thrift migration has changed the demographics of thrift stores. The average household income of savings customers reached $75,000 during October and November of this year, a slight increase from $74,900 last year, $74,600 in 2023 far higher than the average income of 74,100 in 2022, based on demographic data from STI:PopStats.ai combined with data.
U.S. sales at thrift chain Savers Value Village rose 10.5% in the three months ended Sept. 27 and the momentum continued into October, store executives said in late October.
“The high household income cohort continues to become a larger portion of our consumer mix,” CEO Mark Walsh told analysts. “It’s down business for sure, and our younger cohort is also continuing to grow in numbers.”
Fewer returns, so far
For the first six weeks of the holiday season, return rates are down from the same period a year ago, according to Adobe Analytics.
This suggests shoppers are doing more research before adding something to their shopping list, and are being more disciplined about sticking to the lists they create, according to Vivek Pandya, principal analyst at Adobe Digital Insights.
“I think it’s very indicative of consumers and how conscientiously they bought,” Pandya said. “Many of them are being very specific about how they spend their budget.”
From November 1 to December 12, revenue was down 2.5% compared to last year, Adobe reported. In the seven days following Cyber Week — the five shopping days between Thanksgiving and Cyber Monday, revenue was down 0.1%.
From Nov. 1 to Dec. 12, online sales rose 6% to $187.3 billion, on track to exceed its outlook for the season, Adobe reported.
Between December 26 to December 31, revenue is expected to increase by 25% to 35% compared to earnings between November 1 to December 12, Adobe said, and it expects returns to remain elevated during the first two weeks of January, up to 8% to 15%.
This is the first year Adobe has tracked returns.
Still, the last week of December sees the greatest concentration of returns: one in eight returns in the 2024 holiday season occurred between December 26 and 31, a trend that is expected to persist this year, Adobe said.