Holiday shopping is taking a detour from department stores to thrift shops, data shows.
Spending Surges Despite Economic Uncertainty
Holiday spending using cash or cards through Sunday topped last year’s haul, according to data released this week by Visa’s Consulting & Analytics division and Mastercard SpendingPulse. The surge comes amid growing unease over the U.S. economy and higher prices, partly driven by President Donald Trump’s tariffs.
Shift to Thrift and Discount Stores
Consumers are increasingly hitting thrift stores or other discounters instead of malls, according to Placer.ai, which tracks people’s movements based on cellphone usage. The trend also shows shoppers sticking more closely to shopping lists and doing more research before buying, a factor that may explain why returns so far are down compared with last year, according to Adobe Analytics.
Traditional Retail Faces Traffic Decline
Placer.ai reports that traffic doubled in department stores during the week before Christmas, from Dec. 15 through Sunday, compared with the average shopping week this year. However, traffic in the week before Christmas this year fell 13.2% compared with 2024. Sales at traditional sellers of only clothing surged 61% in that week versus the rest of the year, but sales slid 9% compared with the run-up to Christmas last year.
Off-Price Stores See a Mixed Performance
Off-price chains like TJ Maxx experienced a sharp seasonal traffic bump of 85.1% and a gain of 1.2% in the week before the holiday, according to Placer.ai. Yet that traffic increase did not translate into a proportional rise in sales, which fell 9% versus last year.
Thrift Stores Jump Ahead
Thrift stores were the hottest destination, with traffic jumping nearly 11% in the week before Christmas compared with last year. “Whether hunting for a designer deal or uncovering a one-of-a-kind vintage piece, consumers increasingly favored discovery-driven experiences over the standardized assortments of traditional retail,” Shira Petrack, head of content at Placer.ai, said in a blog post Friday.
Thrift Stores Broaden Their Appeal
Through the second half of 2025, thrift stores have seen at least a 10% increase in traffic compared with last year, suggesting that environmental concerns as well as economic issues are luring more Americans to second-hand stores, Placer.ai said. Visits to thrift stores generally do not take off during the holidays, yet in the most recent Black Friday weekend, sales jumped 5.5%, Placer.ai reported.
November Traffic Shift
In November, as customer traffic in traditional apparel stores fell more than 3%, traffic in thrift stores surged 12.7%, according to Placer.ai. The thrift migration has altered the demographics of second-hand stores.
Demographic Shift
The average household income of thrift customers hit $75,000 during October and November of this year, a slight uptick from $74,900 last year, $74,600 in 2023, well above the average income of 74,100 in 2022, based on demographic data from STI:PopStats combined with Placer.ai data.
Savers Value Village Momentum
U.S. sales at thrift chain Savers Value Village rose 10.5% in the three months ended Sept. 27 and the momentum continued through October, store executives said in late October. “High household income cohort continues to become a larger portion of our consumer mix,” CEO Mark Walsh told analysts. “It’s trade down for sure, and our younger cohort also continues to grow in numbers.”
Fewer Returns, So Far
For the first six weeks of the holiday season, return rates have dipped from the same period a year ago, according to Adobe Analytics. That suggests that shoppers are doing more research before adding something to their shopping list, and they’re being more disciplined in sticking to the lists they create, according to Vivek Pandya, lead analyst at Adobe Digital Insights. “I think it’s very indicative of consumers and how conscientiously they’ve purchased,” Pandya said. “Many of them are being very specific with how they spend their budget.”
Return Rates vs. Last Year
From Nov. 1 to Dec. 12, returns fell 2.5% compared with last year, Adobe reported. In the seven days following Cyber Week-the five shopping days between Thanksgiving and Cyber Monday-returns fell 0.1%.
Online Sales Performance
From Nov. 1 through Dec. 12, online sales rose 6% to $187.3 billion, on track to surpass its outlook for the season, Adobe reported.
December 26-31 Return Expectations
Between Dec. 26 to Dec. 31, returns are expected to rise by 25% to 35% compared with returns between Nov. 1 through Dec. 12, Adobe said, and it expects returns to remain elevated through the first two weeks of January, up 8% to 15%.
Adobe’s First Year Tracking Returns
This is the first year that Adobe has tracked returns. Still, the last week of December sees the greatest concentration of returns: one out of every eight returns in the 2024 holiday season took place between Dec. 26 and Dec. 31, a trend expected to persist this year, Adobe said.
Closing Note
A sheriff’s deputy in Fulton County, Ohio, pulled over a speeding vehicle with a couple familiar faces inside.
Key Takeaways
- Holiday spending tops last year’s totals despite economic uncertainty.
- Thrift stores now lead holiday traffic, with a nearly 11% jump in the week before Christmas.
- Return rates are down, indicating more disciplined shopping habits.
The holiday season continues to evolve, with shoppers favoring discovery-driven experiences and tighter budgets shaping the retail landscape.
