JLL: Mass merchants top holiday destination; most shoppers — not all — to cut spend
The economic climate has finally caught up with holiday enthusiasm as many — but not all — American households scale back their spending plans for 2025.
Average holiday budgets have dropped 10.2% from $1,261 to $1,133 per person, marking a significant retreat from last year's more optimistic spending levels, according to JLL’s 2025 U.S. Holiday Shopping Survey. But not all households are cutting back. Higher-income households earning over $150,000 are increasing their planned spending by 26% to $1,963, while lower-income households under $50,000 are cutting back severely to just $699 — a steep 24% decrease from $915 last year.
“This growing divide indicates a holiday season that's increasingly bifurcated: budget-conscious and constrained among lower earners, but indulgent and experience-focused at the top,” the report stated.
The study also found that economic pressures are driving consumers toward value-oriented, efficient shopping destinations over more premium retail experiences. Mass merchandisers bounced back this year to capture 62.2% of holiday shoppers' plans, reclaiming their position as the most popular shopping destination after falling in popularity last year.
The resurgence reflects consumers' demand for competitive pricing, extensive product selection, and convenient one-stop shopping experiences that mass merchandisers deliver effectively, according to JLL. While department stores maintain strong appeal at 50.4% of shoppers, their relative position has been weakened by this mass merchandiser revival.
Bargain Hunting
The overwhelming majority (71%) of shoppers will prioritize stores offering low prices or sales above all other factors, while 60.6% actively seek more sales than usual. The percentage of shoppers planning to take advantage of deal days like Black Friday and Cyber Monday has increased to 46.4%.
While shoppers plan to take advantage of deal days, nearly half (44.6%) also plan to look for deals throughout the season, demonstrating that promotional periods are no longer confined to specific days but extend across the entire shopping calendar.
Dwell Time
JLL said that one of the most striking discoveries in this year's research is the power of dwell time in driving holiday revenue. Shoppers who stay longer spend much more — $1,416 on visits over 90 minutes, while those spending under 30 minutes spend $792.
“This trend reinforces that retailers and shopping centers must invest heavily in creating comfortable, engaging environments that encourage customers to linger,” the report stated.
Other findings from the JLL survey are below.
•Only 16.3% of consumers plan to shop exclusively online, meaning over 83% will incorporate physical stores into their holiday journey in some capacity.
•Nearly half (46%) of shoppers planning to visit only three to five stores to complete their holiday lists. An additional 13.2% plan to visit only one to two stores, meaning nearly two-thirds of shoppers will finish their holiday shopping with five or fewer retail stops. Only 23.7% plan to visit six to nine stores, while just 7.8% intend to visit 10 or more locations.
"With 84% of consumers still visiting physical stores but concentrating their trips to just three to five destinations, the opportunity lies in becoming one of those chosen few," Naveen Jaggi, president of Retail Advisory Services, JLL, told Chain Store Age. "The resurgence of mass merchandisers proves that value and convenience are paramount, but the real differentiator will be creating that 'long linger' experience that transforms a quick shopping trip into meaningful engagement and significantly higher basket values."
•Only 16.3% of consumers plan to shop exclusively online, meaning over 83% will incorporate physical stores into their holiday journey in some capacity.
•Nearly three-quarters of consumers plan to use multiple channels to complete their holiday lists, though enclosed mall shopping has declined to 49.9% from previous highs.
•Most (84.6%) shoppers plan to eat or drink something while shopping this season. Beverages lead the charge with 51% of shoppers planning purchases, while snacks follow closely at 41.4%. Higher-income shoppers are much more likely to indulge in all food offerings, while younger consumers favor fast-casual restaurants and older generations prefer full-service meals when they combine food with shopping.
"The 2025 holiday season shows that retailers who master the fundamentals — competitive pricing, comprehensive selection, and compelling in-store experiences — will win," said Jaggi.
