Inflation? Tariffs? Wars of trade? Although Bay Area consumers may still be concerned about the state of the economy following a controversial election, many seem eager to spend this holiday season, albeit with a careful watch on costs.
Gift-hunters were already swarming malls and retail establishments throughout the area as Thanksgiving weekend approached, seeking early Black Friday discounts on anything from kitchenware to athleisure.
While returning from college for Thanksgiving, Sofia Arroyo, 21, browsed shops along Santana Row in San Jose, saying, “I think shopping around this season is what makes home, home.” I was excited to see the Christmas trees and other decorations in a mall when I got home. It evokes the spirit of the holidays.
According to the National Retail Federation, holiday shoppers nationwide are anticipated to spend over $1 trillion, or between $979.5 billion and $989 billion, a 3% rise from the previous year. Although it would be a new record, the sales increase would be less than in previous years.
Despite a flurry of articles about how President-elect Donald Trump’s pledge to slap tariffs on a variety of imports could tremble global markets and widespread concerns about price increases, the optimistic prediction comes as inflation has returned to historical averages.
According to a statement from the retail federation’s chief economist, Jack Kleinhenz, household finances are in good shape and are driving robust spending as the holidays approach.
According to the retail federation, per-person expenditure on food, decorations, holiday gifts, and other seasonal things is expected to increase from $875 in 2023 to $902 this year.
Consumers are still cost-sensitive, nevertheless, as overall costs are 20% higher than they were before to the coronavirus outbreak. Nearly two-thirds of holiday consumers expect to look for cheaper goods, and nearly half aim to switch to more affordable outlets, per a survey conducted by business consultant Deloitte.
Sarah Chester, who lost her home in El Cerrito to a fire in 2022, said she is still in shock over the financial and psychological damage caused by the fire. She explained that replacing each nail cost more than it would before COVID.
We’ve had to buy a lot of things from Amazon, and it hurts my spirit,” she remarked. The cost has simply skyrocketed.
A cheese grater, bottle stoppers, a candy cane cosmo mix, and a colorful pack of Teenie NeeDoh Cool Cats stress balls for her kids—which she and her husband will definitely borrow—were the only essentials on her holiday shopping list because she was still feeling the effects of the election two days before Thanksgiving.
Chester stated that all we needed were tools to assist us get through. I believe that when you don’t know what the chaos machine is doing, it doesn’t feel safe for customers to spend money.
Retailers are responding particularly to concerns about cost and spending by giving even more offers than in past years and doubling down on a recent practice of beginning Black Friday promotions as early as October, according to Miro Copic, a marketing expert at San Diego State University.
He claimed that the early morning crush of deal hunters that used to be a defining feature of Black Friday are now largely a thing of the past due to increased pre-Thanksgiving sales, more product inventory, and the growth of online shopping.
According to Copic, the idea behind Black Friday has only recently changed.
According to the retail federation, online purchases are now predicted to make up approximately a third of holiday spending this year, totaling around $300 billion, a 9% rise from 2023.
The second busiest shopping day over Thanksgiving holiday is predicted to be Cyber Monday, when shops offer the greatest online bargains. But don’t forget Small Business Saturday, when Bay Area mom-and-pop shops are hoping for a boost following yet another year of high expenses and difficult recruiting.
This Saturday, shoppers were urged by San Jose Mayor Matt Mahan to visit locally owned establishments located throughout the city’s twelve commercial districts.
This holiday season, locals may discover the ideal presents while helping their neighbors in Calle Willow, Japantown, Little Saigon, and Downtown, he said.
For over forty years, Sally and George Kiskaddon, proprietors of Builders Booksource in West Berkeley, have persevered in the constantly changing book-selling industry.
Although consumers usually window shop all year long, frequently comparing prices on Amazon or choosing other, less expensive online options, According to Sally, foot traffic has increased in anticipation of the unusually late Thanksgiving holiday this year.
Sally laughed and pointed to the store’s mixed-up décor of Christmas houses and autumn foliage, saying, “Honestly, people have started getting worried when they count the number of days between Thanksgiving and Christmas Eve.” Giving someone a book is a great way to give them something they don’t have or that will improve their quality of life.
