Thrift Surge: 11% Traffic Jump as Tariffs and High Prices Reshape 2025 Holiday Shopping
Thrift store traffic jumped 11% this holiday season as American shoppers pivoted away from traditional malls due to high prices and tariff concerns.
Thrift stores are the new holiday hotspots. While traditional malls saw thinning crowds, thrift store traffic surged by 11% in the week leading up to Christmas. According to data from Placer.ai, Americans are swapping department store aisles for vintage racks, driven by economic anxiety and the looming impact of Donald Trump's tariffs on imported goods.
The Rise of the 'Trade-Down' Consumer
The data tells a stark story of retail divergence. Department store traffic fell 13.2% compared to 2024, and apparel-only retailers saw a 9% decline. In contrast, the second-hand sector is booming. Interestingly, the trend isn't just for low-income earners; the average household income for thrift shoppers hit $75,000 this year, up from $74,100 in 2022. As Savers Value Village CEO Mark Walsh noted, the high-income cohort is becoming a larger part of the consumer mix.
| Retail Sector | YoY Traffic Change | Context |
|---|---|---|
| [object Object] | [object Object] | [object Object] |
| [object Object] | [object Object] | [object Object] |
| [object Object] | [object Object] | [object Object] |
Disciplined Spending Lowers Return Rates
Shoppers aren't just changing where they buy, but how they buy. Adobe Analytics reported that return rates dipped 2.5% between Nov 1 and Dec 12 compared to last year. This suggests a more conscientious consumer who sticks to research-backed lists to avoid wasting a tighter budget. Despite the caution, online sales rose 6% to $187.3 billion, proving that the appetite for spending remains, albeit in a more calculated form.
Investors should watch the 'post-holiday hangover' from Dec 26 to 31, where returns are expected to jump by up to 35%, potentially impacting Q4 margins for major e-commerce players.
This content is AI-generated based on source articles. While we strive for accuracy, errors may occur. We recommend verifying with the original source.
Related Articles
The U.S. Consumer Price Index (CPI) for November rose 2.9% year-over-year, below expectations. This fuels speculation about a Federal Reserve interest rate cut in 2026.
The U.S. economy grew by 4.3% in Q3, sending the S&P 500 to a record high. However, the strong data is dampening hopes for an early Fed rate cut, increasing market uncertainty.
A surprising increase in US core capital goods orders and shipments for October 2025 signals robust business investment, potentially influencing the Federal Reserve's upcoming interest rate decisions.
US manufacturing production was unexpectedly flat at 0.0% in November, according to the Federal Reserve. Here's how high interest rates are impacting the economy and what it means for Fed policy.
The U.S. Consumer Price Index (CPI) for November rose 2.9% year-over-year, below expectations. This fuels speculation about a Federal Reserve interest rate cut in 2026.
The U.S. economy grew by 4.3% in Q3, sending the S&P 500 to a record high. However, the strong data is dampening hopes for an early Fed rate cut, increasing market uncertainty.
A surprising increase in US core capital goods orders and shipments for October 2025 signals robust business investment, potentially influencing the Federal Reserve's upcoming interest rate decisions.
US manufacturing production was unexpectedly flat at 0.0% in November, according to the Federal Reserve. Here's how high interest rates are impacting the economy and what it means for Fed policy.