Exclusive | Grinch economy: Americans feeling stingy this holiday season as personal debt, economic uncertainty looms
The holiday season feels a bit off this year because most people are saying the economy is going to make it less fun.
Nearly two‑thirds of Americans agree that the cost of living will put a damper on the holidays, a finding from WalletHub’s new “The Grinch Economy” report.
With inflation still high, the labor market cooling, and people worried that tariffs could push prices even higher, many shoppers say they’re tightening their belts for the upcoming months.
In fact, a whopping 85 percent of respondents plan to spend the same or less than they did last year, and 60 percent expect to give fewer gifts to charity.
Adding to the caution, one in three are so worried about paying for presents that they’re considering applying for a new credit card, and nearly half say they won’t be able to pay for gifts in full by the due date.
WalletHub notes that about one in four people are still paying off holiday debt from last year, a sign that some budgets are getting a tighter squeeze.
“Even if people are spending the same or less, they may not actually get more value because many prices have gone up in key categories,” says analyst Chip Lupo.
Meanwhile, online sales kept soaring. According to Adobe Analytics, a record $11.8 billion was spent online on Black Friday—up 9.1 percent from last year and just a touch above analysts’ expectations.
“Massive discounts are the main reason shoppers are snapping up deals,” explains Vivek Pandya, Adobe’s Director of Digital Insights. “People have come to wait for big sales events before making a purchase.”
During the early afternoon (10 am to 2 pm) on Black Friday, Adobe reported that shoppers were spending $12.5 million per minute online. More than half of online sales (55 percent) came from mobile devices—a 10.2‑percent jump—suggesting impulsive buying.
Friday also saw a spike in sales of electronics, appliances, and toys. “Tariffs that are looming are encouraging a rush on electronics and apparel, up here the two biggest imported categories,” says Lupo.
AI‑driven traffic for retail sites grew by a staggering 805 percent compared to last year, and shoppers who clicked through a link were 38 percent more likely to make a purchase.
Buy‑now‑pay‑later arrangements were up 8.9 percent from last year, translating to $747.5 million in online spending.
In contrast, in‑store traffic dipped 3.6 percent nationwide on Black Friday, according to RetailNext.
“Shoppers are still buying, but they’re doing it with precision,” notes Joe Shasteen, RetailNext’s global manager of advanced analytics. “They’re waiting for the right price, stretching purchases over longer promotion periods, and entering stores with a much narrower focus than in past holiday seasons.”
Katherine Black, a retail lead at Kearny, observed that the morning’s foot traffic resembled a busy Saturday more than the usual Black Friday frenzy, having spent time at the Westchester mall, Greenwich Avenue, and several neighborhood discount stores.
According to RetailNext, in‑store purchases concentrated on essentials, while discretionary categories—home décor, footwear, and jewelry—saw the steeper drop.
Shasteen concluded, “We’re witnessing the ‘value era’ of U.S. retail,” adding, “Deal hunters are price‑trained, inflation‑stiffened, and reluctant to buy outside their top priorities.”
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