Americans spent more but shifted to discount and thrift stores in 2025 due to economic concerns and tariffs.

Americans spent more during the 2025 holiday season than in 2024, according to Visa and Mastercard data, but shifted spending toward thrift and discount stores amid economic concerns and tariffs. Thrift store traffic rose nearly 11% before Christmas, while off-price retailers saw an 85.1% surge in visits. Department store traffic fell 13.2% compared to 2024, and clothing-only stores saw a 9% sales drop despite higher foot traffic. Return rates declined 2.5% through December 12, indicating more careful shopping. Higher-income shoppers, averaging $75,000 in household income, are increasingly drawn to secondhand retail due to both economic caution and sustainability. Sales at thrift chains like Savers Value Village rose 10.5% in the third quarter, reflecting a broader trend toward value-driven, discovery-based shopping.