The holiday spirit may be dimming for many Americans as financial pressures mount. A recent WalletHub report, titled “The Grinch Economy,” reveals that nearly 63% of U.S. consumers believe economic conditions will make this year’s festivities less enjoyable. With inflation persisting and job market growth slowing, households are preparing to limit spending. n nApproximately 85% of respondents indicated they will spend the same or less on gifts compared to 2024, while 60% plan to reduce charitable contributions. More concerning, one-third of shoppers said they might open a new credit card solely to cover holiday purchases, and close to half expect not to settle their balances by the payment deadline. n nWalletHub discovered that 25% of individuals are still clearing debt from the previous holiday season, suggesting ongoing financial strain. “This could indicate tighter household budgets this year,” noted Chip Lupo, a WalletHub analyst. He added that even maintaining last year’s spending levels doesn’t guarantee better value, given price increases across multiple product categories. n nDespite these warnings, online shopping saw a surge. Adobe Analytics reported $11.8 billion in digital sales on Black Friday, an increase of 9.1% from the prior year and slightly above projections. Vivek Pandya, Adobe’s Director of Digital Insights, attributed the rise to aggressive discounting: “Consumers have learned to time their purchases around major sales events.” n nBetween 10 a.m. and 2 p.m., online transactions averaged $12.5 million per minute. Mobile devices accounted for 55% of e-commerce activity, up 10.2%, hinting at impulsive buying behavior. High demand was observed for electronics, appliances, and toys. n nLupo pointed out that looming tariffs could accelerate purchases in sectors reliant on imported goods, particularly electronics and apparel. Meanwhile, AI-driven traffic—measured by clicks on personalized links—jumped 805% year-on-year. Shoppers arriving via such links were 38% more likely to complete a purchase. n n”Buy now, pay later” transactions rose 8.9%, totaling $747.5 million in online spending. In contrast, in-store foot traffic dropped 3.6% nationwide, according to RetailNext. Joe Shasteen, the firm’s global manager of advanced analytics, described today’s consumer as highly selective: “They’re spending, but with precision—waiting for deals and entering stores with specific goals.” n nKatherine Black of Kearny observed that Black Friday mornings resembled busy Saturdays rather than the usual rush. In-store purchases leaned toward essentials, while discretionary categories like home goods, footwear, and jewelry saw sharper declines. “We’re in the ‘value era’ of retail,” Shasteen concluded. “Shoppers are trained by inflation and focused strictly on priorities.” n— news from New York Post
— News Original —
Americans feeling stingy this holiday season as personal debt, economic uncertainty looms
Maybe Christmas . . . doesn’t come from a store. n nNearly two in three Americans say the economy will make the holidays less fun this year, according to a new report from WalletHub called “The Grinch Economy.” n nWith inflation high, the labor market cooling and fears about tariffs boosting prices, consumers plan to tighten their belts this holiday season. n nAs many as 85% of people surveyed said they’ll spend either the same amount or less compared to last year — while 60% said they planned to give less to charity. n nAnd that’s not all — one in three say they’ll go as far as applying for a new credit card just to help with holiday shopping, and almost half won’t pay for gifts in full by the due date. n nIn fact, one in four people are still paying off last year’s holiday debt, WalletHub found. n n“So that’s a signal that maybe some folks may be getting a little tightening in their budgets this year,” said Chip Lupo, an analyst at WalletHub. n n“Now just by spending the same or less, that doesn’t necessarily mean you’re going to get more bang for your buck — because prices are inflated in a number of product categories.” n nStill, consumers spent a record $11.8 billion online on Black Friday, up 9.1% from last year and slightly above forecast, Adobe Analytics found. n n“The magnitude of discounts yesterday has been a key driver of online demand,” explains Vivek Pandya, Abode Director of Digital Insights. n n“Consumers have been conditioned to wait for big promotional events to buy products they’ve had their eyes on.” n nBetween 10 am and 2 pm, an eye-watering $12.5 million was spent online every single minute, Adobe said. More than half — 55% of online sales — came through a mobile device, up 10.2%, suggesting possible impulse shopping. n nAdobe observed large upticks Friday in purchases of electronics, appliances and toys. n n“Those tariffs looming does mean that there’s going to be a run on electronics and also apparel, because those are the two categories in which the majority of the products are made outside of the US,” said Lupo. n nAI traffic — measured by shoppers clicking on a link – increased by a whopping 805% year over year, and consumers who landed on a retail site through a link were 38% more likely to buy. n nUnsurprisingly, buy now pay later was up 8.9% from last year, representing $747.5 million in online spending. n nMeanwhile, in-store traffic was down 3.6% nationwide on Black Friday, according to RetailNext. n n“We’re seeing a consumer who is still spending, but doing it with surgical precision,” said Joe Shasteen, RetailNext’s global manager of advanced analytics. “They’re waiting for the right price, stretching purchases across a longer promo window, and walking into stores with a far narrower mission than we’ve seen in past holiday seasons.” n n“The morning looked more like a busy Saturday than the traditional Black Friday crunch,” added Katherine Black, Food, Drug and Mass Market retail lead at Kearny, who spent the day at the Westchester mall, the Greenwich Avenue strip and also checked out local discounters. n nIn store spending focused on essentials, while more discretionary sectors like home, footwear and jewelry took the sharper hit, RetailNext found. n n“What we’re watching play out is the ‘value era’ of US retail,” said Shasteen. “Shoppers are deal-hungry, inflation-trained, and unwilling to buy outside their priorities.”