Shoppers flocked to stores like the Citadel Outlets, enduring long lines and parking waits, all in a determined hunt for the best deals. However, data shows a clear trend of caution, with consumers in the Los Angeles area planning to spend 14% less this holiday season, and a national expectation of a 10% decrease. This pullback is a direct response to economic uncertainty and the perception of higher prices, causing shoppers to tighten their wallets.
Economic anxiety is a major driver, with 62% of L.A.-area shoppers expecting the economy to weaken. Consumers across all income groups are making trade-offs, such as switching to cheaper brands, with more than half of respondents willing to abandon their first choice if it’s too expensive. This behavior, termed ’trading down,’ is now common even among higher-income brackets, as continuous inflation and tariff concerns drag on consumer morale.
The National Retail Federation still predicts record turnout and sales growth, but the motivation has shifted. Shoppers are not spending out of confidence, but out of a desire to stretch their dollars and buy now to avoid anticipated future price hikes. The focus is squarely on value, with many using the deep discounts to counteract the effects of inflation on their holiday budgets.
