Research Findings: A Quarter of Holiday Shoppers Plan to Purchase Pre-owned Presents
In the face of rising inflation, consumers are adjusting their spending habits as the holiday season approaches. According to recent surveys, more than half (52%) of households report their income as unstable, a significant 36% increase from Q2. This economic uncertainty has led many to seek cost-saving measures.
One such strategy is the growing popularity of the secondhand market. A report predicts that the U.S. secondhand market will reach $82 billion by 2026. This trend is not limited to just the younger generation. According to a 2019 Deloitte report, 61% of Gen Z consumers and 43% of millennials planned to give secondhand items as holiday gifts.
Retail giants like Target, Walmart, and Best Buy have already felt the pinch of reduced consumer spending. In response, these companies have had to cut their guidance as they prepare for a leaner holiday season. However, specific companies have not yet publicly adjusted their sales expectations for the 2025 Christmas season due to inflation.
Despite the economic challenges, consumers are not giving up on holiday traditions entirely. Shoppers are least likely to cut gifts for their children, grandchildren, and partners or spouses. Instead, they are adopting strategies such as reducing the number of people they buy for (38%), paying less per person (54%), and purchasing used items (25%) to save costs.
Other research suggests that consumers are altering their shopping behaviours in response to high costs. For instance, 44% of respondents in a ThredUp survey released in May said they are cutting back their clothing spending. Furthermore, 79% of respondents in a Morning Consult survey were looking for deals, and 77% had reduced their shopping.
In addition to changes in spending, consumers are also cutting back on holiday activities and travel expenses (34%). This shift in behaviour has led 85% of respondents in the Morning Consult survey to attribute their changing shopping habits to inflation.
In conclusion, as inflation continues to impact household incomes, consumers are adapting their spending habits to navigate the holiday season. While some traditions remain intact, a growing number of shoppers are turning to secondhand markets, reducing their spending, and seeking out deals to make the most of their budgets.
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