Holiday shoppers prioritize value as economic confidence weakens

CHICAGO – U.S. consumers are entering the holiday season amid growing economic concerns, yet many remain determined to uphold their holiday traditions while adopting more deliberate spending strategies, according to Circana’s 2026 U.S. Holiday Purchase Intentions Study.

The study found that 57% of consumers rate current economic conditions as fair or poor, while 49% plan to spend less because of changes or uncertainty in their financial situations. Despite these concerns, shoppers are finding ways to stretch their budgets rather than abandoning holiday purchases altogether.

Nearly three-quarters of holiday shoppers plan to use money-saving strategies, including buying more items on sale (30%), redeeming rewards points (19%), buying more private-label products (18%), and increasing their use of loyalty programs (18%).

More than half have already taken steps to prepare financially for the season. These include limiting impulse purchases (23%), reducing spending earlier in the year (19%), purchasing gifts throughout the year (18%) and setting aside dedicated holiday funds (17%).

Despite tighter budgets, discretionary purchases remain important. Circana found that consumers who describe their personal finances as fair or poor are more likely than financially secure shoppers to plan to buy gifts for themselves, indicating that personal rewards remain a priority even amid economic uncertainty.

“The most striking finding is the tension between economic sentiment and consumer behavior,” said Kiara Barrett, head of global thought leadership at Circana. “Consumers may not feel better about the economy, but they are taking deliberate steps to manage uncertainty.”

For retailers, the findings underscore the importance of competitive pricing, promotions, private-label assortments, and loyalty incentives as consumers become more selective about where they spend.

Circana said retailers and manufacturers will need to demonstrate clear value while helping shoppers feel confident about purchases competing for limited household budgets.