As the 2025 holiday season approaches, American consumers are tightening their belts amid persistent economic headwinds. According to the Resonate Fall 2025 Consumer Trends Report, a staggering 60% of shoppers are actively seeking discounts on everyday essentials, while 49% are postponing non-urgent purchases. This shift reflects broader anxieties about financial security, with many redirecting funds toward savings and debt repayment rather than festive splurges.

The report, released by Resonate, highlights how economic uncertainty—fueled by rising costs in groceries, utilities, and tariffs—is reshaping holiday plans. Consumers aren’t just cutting back; they’re fundamentally reprioritizing, with discretionary spending on gifts, travel, and entertainment taking the biggest hits. This comes as no surprise given recent data showing a tepid outlook for consumer sentiment.

Economic Pressures Reshape Priorities

A McKinsey analysis from August 2025 notes that early shopping and practical gifting are redefining the season, with consumers settling in for what the firm calls a ‘tepid’ holiday period. ‘Early shopping, generational shifts, and the rise of practical gifting redefine US consumers’ approaches,’ states the report from McKinsey. This practicality stems from ongoing inflation and a weakening labor market, as outlined in Morgan Stanley’s June 2025 insights, which predict a slowdown in spending after a strong start to the year.

Adding to this, Deloitte’s September 2025 State of the US Consumer report reveals that shoppers feel less financially secure, leading to selective spending. ‘Consumers report feeling less financially secure but appear to be spending selectively,’ the Deloitte analysis explains. This selectivity is evident in the Resonate data, where holiday budgets are pivoting toward essentials, pushing brands to emphasize affordability in their messaging.

Value-Seeking Dominates Shopping Behavior

Recent news from Circana’s 2025 U.S. Holiday Purchase Intentions Report, published just three days ago, underscores practicality and price sensitivity as key drivers. The report from Circana points to early planning and digital convenience, with consumers hunting for deals amid expected higher prices. Similarly, a Yahoo Finance article from three weeks ago details how economic headwinds are driving deeper shifts, with many opting for future essentials over holiday indulgences.

Posts on X reflect this sentiment, with users discussing budget cuts and the hunt for discounts. For instance, discussions highlight households earning under $50,000 cutting back on nonessentials by 62%, seeking cheaper alternatives, as shared in various X threads. This aligns with GWI’s January 2025 consumer spending trends, which emphasize value-driven behaviors in the US, helping brands refine strategies amid global shifts, per GWI.

Brands Adapt to Affordability Demands

Small businesses are feeling the pinch, expecting holidays to contribute 47% of yearly revenue—up from 33% last year—according to a FinancialContent article from two days ago. ‘For small business owners, the holidays are crucial to their success,’ notes the piece from FinancialContent. Yet, with 77% of shoppers anticipating higher prices, as per Deloitte’s 40th Annual Holiday Retail Survey, brands must lead with value messaging.

eBay’s recent earnings beat was tempered by a weak holiday outlook due to tariffs and geopolitical uncertainties, as reported in a TS2 Tech article from 18 hours ago. ‘Trade and regulatory changes are one factor – as discussed, new U.S. tariff policies on small imports are a direct drag,’ states the TS2 Tech piece. This mirrors Resonate’s findings, where consumers prepare to cut dining out, travel, and entertainment spending.

Generational Shifts and Digital Influences

McKinsey’s annual State of the Consumer report from June 2025 delves into generational dynamics, noting how younger shoppers are leading the charge in value-seeking. ‘McKinsey’s annual State of the Consumer report looks at the data behind the biggest trends shaping global consumer behavior in 2025 and beyond,’ per McKinsey. This includes a rise in mobile shopping and social media influence, as echoed in Circana’s holiday intentions.

PissedConsumer’s survey from three weeks ago reveals rising prices and shrinking budgets are ending Black Friday’s allure. ‘Discover 2025 holiday shopping trends with PissedConsumer. Learn how rising prices and tighter budgets are reshaping how consumers shop this season,’ from PissedConsumer. X posts amplify this, with talks of delayed purchases and deflationary fears, like those from GC Cooke warning of spirals where ‘Consumers delay purchases expecting cheaper prices tomorrow.’

Navigating Headwinds with Strategic Messaging

U.S. Bank’s October 2025 overview emphasizes consumer spending as the economy’s key driver, yet current trends show resilience tempered by caution. ‘Learn why consumer spending is the key driver of U.S. economic growth,’ notes U.S. Bank. Brands are responding by slashing prices, as seen in Target’s moves reported on X by KTLA, cutting costs on thousands of items for the holidays.

Resonate’s latest X post from October 27, 2025, points to climbing grocery and utility costs shifting spending toward essentials. ‘Holidays may feel tighter this year and not just because of gift budgets,’ shares Resonate on X. This necessitates affordability-focused strategies, with 70% of shoppers per Deloitte seeking value.

Future Implications for Retail

Looking ahead, the volatility in consumer feelings, as detailed in Circana’s three-week-old report, suggests an unpredictable season. ‘The volatility of consumers is evident in their feelings about the holiday shopping season,’ from Circana. With 57% anticipating a weaker economy—the most negative in decades—retailers must adapt swiftly.

GOBankingRates’ piece from two days ago offers tips for fighting inflation during holidays, forecasting average spending at $1,595, down 10% from 2024. ‘This holiday season, shoppers are clasping their wallets tighter,’ per GOBankingRates. As Suzy’s X post notes, ‘U.S. consumers are making every dollar count amid economic pressures,’ urging brands to grasp these shifts for relevance.

Industry Strategies in a Tight Market

NAI Realvest’s recent X post warns of expected lower spending, advising strategies for changing markets. EBC Printing highlights that with 40% expecting fewer discounts, value and quality matter more. These insights, combined with Resonate’s data, paint a picture of a holiday season where affordability reigns supreme.

Ultimately, as economic headwinds persist, the Resonate report’s call for brands to prioritize value messaging could define success. By crediting sources like McKinsey and Deloitte, this deep dive underscores the need for adaptive, consumer-centric approaches in 2025’s challenging retail landscape.