Amid Shopper Vacation Spending Pullback, Here’s What They Plan to Purchase

If one factor defines the vacation outlook this season, it’s “uncertainty.” While some retailers expect consumers to spend more, others are predicting a decrease. One factor that continues to be regular is the expectation that attire can be a prime gifting merchandise. But consultants say manufacturers and retailers want to supply the very best worth—not essentially the least costly gadgets—this 12 months.

“Apparel remains one of the top items consumers plan to purchase this holiday season,” stated Circana’s Kristen Classi Zummo, attire trade advisor on the world market analysis and tech firm, in an interview with the Lifestyle Monitor™. “Value is the key purchase driver—whether that’s reflected in the best sale price, free shipping or quality. Price alone won’t spark interest; it’s the right balance of the value equation that will win over shoppers this season.”

Romain Fouache, CEO of Akeneo, a product expertise firm, additionally feels attire will prevail this season, however provides a caveat.

“Apparel will likely continue to be a top holiday gift,” Fouache advised the Lifestyle Monitor™ in an interview. “But consumers will undoubtedly alter how and where they go about making those purchases. In an era of tariffs and global trade wars, brands can’t rely on low prices as a crutch—the model is eroding under scrutiny. Value, especially for apparel, will be less focused on price alone and more on what you get for what you pay. And in times of economic uncertainty, that will mean storytelling, substance and most importantly, transparency.”

When searching for attire items this vacation, most shoppers (65 %) say they are going to be in search of cotton clothes, in response to the Cotton Incorporated 2025 Lifestyle Monitor™ Survey. The survey completes 500 interviews per 30 days with U.S. shoppers between the ages of 13 and 70. Following cotton are denim (6 %), polyester (3 %), silk, linen, wool and nylon (all 1 %).

At 55 %, T-shirts prime the record of clothes gadgets shoppers say they want to obtain this vacation, in response to the Monitor™ analysis (amongst 348 surveyed shoppers). Men are more likely to need T-shirts than girls (69 % versus 46 %). Meanwhile, 52 % of girls need sleepwear like robes, pajamas or nightgowns in comparison with simply 27 % of males. Sweaters (42 %) are additionally a prime vacation merchandise, together with denims (36 %), informal shirts (36 %) and outerwear (35 %). Both women and men would additionally like athletic attire like yoga pants and operating shorts or shirts (34 %). And the outdated standby—socks—are sought by 33 %.

Overall, shoppers surveyed by the Lifestyle Monitor™ plan to tug again on spending this 12 months, saying they plan to spend a median of 6 % much less this vacation: $796 this season, down from the $844 in 2024. This 12 months’s determine can be much less in comparison with 2023 ($914) and 2021 ($837). On common, shoppers additionally say they’ll spend barely much less this 12 months on clothes items in comparison with 2024 ($324 versus $337).

While one-third of shoppers (33 %) say they plan to buy the identical this 12 months as they’ve in earlier vacation seasons, greater than two-thirds (68 %) point out they plan to rein of their spending, in response to the Monitor™ analysis. More than one-quarter (26 %) say they plan to be stricter with their budgets. Another 21 % say they plan to chop again as a result of “things are too expensive,” and an extra 21 % plan to cut back spending on account of restricted funds.

PwC’s outlook mirrors the Lifestyle Monitor™ survey, with its forecast predicting a 5 % drop in common vacation spending. The agency additionally predicts an 11 % drop within the common present spend. PwC says Gen Z is feeling the strain greater than most and can spend 23 % much less this vacation. “For retailers, the takeaway is to look beyond price cuts—and to understand how life stage, values and emotion drive spending.”

Fouache stated in idea, gross sales and promotions can be essential this season, as shoppers look to profit from their budgets. He stated Akeneo is already seeing predictions for an uptick in spending on key days corresponding to Black Friday and Cyber Monday, in addition to in using purchase now, pay later (BNPL) fee choices. He added that Adobe has estimated between Nov. 1 and Dec. 31, BNPL spending might hit $20.4 billion, a 9 to 12 % improve from final 12 months. “Consumers want to continue shopping and gift giving but are taking to alternate ways to spend during economic hardship,” Fouache stated.

The National Retail Federation (NRF) expects shoppers to spend 1.3 % much less this vacation, for a complete of $890, with $628 going towards items. The the rest of $263 is predicted to go towards seasonal gadgets corresponding to meals and décor. The NRF says the highest items shoppers wish to obtain are present playing cards (50 %), clothes and accessories (46 %), books and different media (27 %), private care or magnificence gadgets (23 %), and electronics (22 %).

Mastercard Economics Institute’s (MEI) vacation forecast predicts on-line gross sales progress will improve 7.9 % within the U.S. over final 12 months, in comparison with a 2.3 % rise for brick-and-mortar. MEI says inflation can be a bigger contributor to gross sales progress, versus precise gross sales quantity. It provides that the affect of tariffs on client costs and spending just isn’t but clear. “Some retailers betting on sales volume may choose to eat the tariff increases, but there are signs that others will be passing them along.”

Circana’s Classi Zummo says as costs proceed to rise, shoppers are shifting their vacation spending towards practicality.

“One in five plan to invest more in items people truly need rather than splurging on luxury goods—a clear continuation of the selective purchasing behavior we’ve seen all year, where utility trumps extravagance,” Classi Zummo stated. “In apparel, this means a focus on seasonal staples and basics they’ve been holding off on, waiting for the right deal. There’s still room for fashion, but versatility is the new must-have.”

As for the way they’ll store, almost three-quarters of all shoppers (72 %) say they’ll do a minimum of some buying in bodily shops this 12 months, in response to the Monitor™ analysis. Men (79 %) usually tend to say they’ll store in-store than girls (67 %). Additionally, half of these surveyed say they plan to begin researching vacation items earlier than October. Only a 3rd (33 %) point out they may begin researching items between October and December.

Fouache stated in the present day’s shoppers have much more assets at their disposal to hunt out data concerning the standard and origins of the attire they purchase.

“Consumers are combining AI tools, reviews and pre-purchase research to make smarter, more informed decisions,” he advised the Lifestyle Monitor™. “Our research found that 89 percent of consumers will look into products before buying, and 77 percent will leave a site if key details are missing. Shoppers have a lot more weighing on their minds and wallets this year, and they aren’t taking any chances.”

The Cotton Incorporated Lifestyle Monitor™ Survey is an ongoing analysis program that measures client attitudes and behaviors regarding attire, buying, style, sustainability, and extra.

For extra details about the Lifestyle Monitor™ Survey, please go to https://lifestylemonitor.cottoninc.com.