What: The 2025 holiday season was defined by heightened price sensitivity, with value-oriented formats and “treasure hunt” experiences outperforming traditional retail categories.

Why it is important: The outperformance of value-driven formats highlights changing consumer priorities and the need for traditional retailers to adapt their strategies to remain competitive.

The 2025 holiday shopping season revealed a decisive shift in consumer behavior, as shoppers gravitated toward discount, off-price, and thrift retailers, leaving traditional gifting categories and department stores struggling to match previous years’ performance. While physical retail and malls remained central to the holiday experience, the most significant gains were seen in formats offering perceived value and the excitement of discovery, such as dollar stores and off-price chains. Economic prudence and heightened price sensitivity led consumers to make smaller, more targeted purchases, favoring affordable essentials and unique finds over discretionary splurges. The “treasure hunt” dynamic, characterized by inventory freshness and the thrill of finding deals, proved especially powerful in attracting traffic and driving engagement. Meanwhile, traditional retailers faced double-digit declines in key categories, underscoring the urgency to innovate and compete on both value and experience. As the season closed, it became clear that while consumers are still shopping, they are doing so with greater discernment and a sharper focus on affordability and novelty.

IADS Notes: The 2025 holiday season’s retail landscape is marked by a pronounced shift toward value-driven shopping and heightened price sensitivity, as documented by the Financial Times in December 2025, which reported robust growth at US dollar stores like Dollar General and Dollar Tree, now attracting shoppers across all income brackets. Inside Retail’s December 2025 analysis confirms that, despite economic headwinds and weak consumer sentiment, overall holiday sales rose, with discount, off-price, and warehouse retailers outperforming traditional categories and physical store visits increasing. PwC’s September 2025 outlook highlights a 5% decline in overall holiday spending, led by Gen Z’s sharp cutbacks and a generational divide, with value, secondhand gifting, and flexible shopping channels shaping demand. Forbes, in December 2025, underscores the rise of the resale market as a growth engine, driven by consumer interest in thrift, sustainability, and innovation, while Retail Wire’s October 2025 report reveals that department stores are struggling to engage younger shoppers, who increasingly prioritize experiential and digital retail. Collectively, these sources illustrate how value, experience, and adaptability are redefining holiday retail performance in a more cautious, discovery-driven consumer environment.

In the US, Super Saturday data reflects more selective holiday shopper