DENVER — Americans are expected to spend more than ever this holiday shopping season — more than $1 trillion for the first time in history — but it’s not because they’re buying more gifts.
The report from the National Retail Federation said shopping is expected to increase, but at its lowest rate since 2019.
The record totals could also come from tariffs, which are causing prices to rise.
A new LendingTree study shows the tariffs are expected to add $132 in expenses to your individual holiday shopping total.
“What tends to wreck an awful lot of holiday budgets is impulse buying,” Matt Schulz, chief consumer spending analyst at LendingTree, said. “You really change the whole vibe of the shopping trip if you have a list. It changes from going browsing, looking for inspiration, to going out, specifically seeking things that you want.”
Despite the record projections, more people are finding themselves turned off from holiday shopping this year.
On the chat forum Reddit, several users on the r/economy page said they were either going to adjust their holiday shopping or scrap it altogether.
McNalienBro posted, “I’m not spending a dime for Xmas this year sadly.”
Others, like user kpphoneshome said, “I can’t afford anything for Christmas, not even food.”
This has been a persistent issue for months.
The most recent numbers from the United States Bureau of Labor Statistics show prices rose 3.0% in September with some of the biggest gains coming in apparel at 0.7%.
Schulz said if gift giving is giving you anxiety, chatting with loved ones about expectations can be a good way to cut down on your spending while still making your loved ones feel special.
