Thrift Store Popularity Soars Amid Cautious Holiday Spending

Post by : Bianca Suleiman

According to Placer.ai, thrift stores saw nearly an 11% increase in foot traffic the week before Christmas compared to last year. This marks a significant change, as second-hand retailers usually experience minimal holiday boosts.

“This reflects a distinct shift towards discovery-based shopping,” remarked Shira Petrack, head of content at Placer.ai. Consumers appear more inclined towards treasure-hunting for unique finds and prioritizing value over the mainstream offerings of larger retailers.

Traffic to thrift stores grew by at least 10% year-on-year in the second half of 2025. A combination of environmental awareness and tighter household budgets is steering shoppers towards second-hand alternatives. Even during Black Friday, typically a time for major retailers, thrift store guest counts rose by 5.5%.

November alone saw visits to traditional apparel outlets drop over 3%, while thrift store patronage jumped by 12.7%.

Shifting Demographics in Thrift Shopping

Another important evolution is seen in the demographic of thrift shoppers. Data from Placer.ai combined with STI:PopStats indicates that the average household income of thrift store patrons reached $75,000 in October and November, slightly up from $74,900 last year and significantly higher than $74,100 in 2022.

This suggests that thrift shopping is becoming more appealing to higher-income buyers, who are increasingly opting for second-hand products despite having more disposable income.

This consumer trend is visible in corporate earnings as well. The thrift chain Savers Value Village reported a 10.5% increase in sales in the three months ending September 27, with momentum continuing into October, according to executives.

“Our higher-income clientele is on the rise,” stated CEO Mark Walsh to analysts. “We’re witnessing both a downgrading trend and growing engagement from younger consumers.”

Fewer Returns Indicate Thoughtful Purchases

While returns are likely to surge post-holiday, current data shows a trend of consumers sending back fewer items overall.

Adobe Analytics reports that return rates in the first six weeks of the holiday season were lower compared to the same timeframe last year. From November 1 through December 12, returns declined by 2.5% year on year, with a marginal drop of 0.1% the week following Cyber Week.

This indicates a more strategic approach to shopping, as consumers research products meticulously and stay mindful of their budgets, as explained by Vivek Pandya, lead analyst at Adobe Digital Insights.

“Shoppers are now more deliberate in their choices. They have a precise idea of their needs, handling each dollar with care,” Pandya noted.

Online sales from November 1 to December 12 increased by 6%, reaching $187.3 billion, keeping Adobe poised to surpass its seasonal predictions.

Post-Christmas Return Surge Expected

Despite the current decline, returns are set to increase sharply in late December. Adobe anticipates that returns between December 26 and December 31 will surge by 25% to 35% compared to earlier in the season. The trend of heightened return rates is expected to carry over into the first two weeks of January, showing an increase of 8% to 15%.

Historically, the last week of December sees the highest volume of holiday returns. Last year, 1 in 8 holiday returns occurred during the period from December 26 to December 31—a behavior that is likely to replicate this year.

Insights on Consumer Behavior This Season

The 2025 holiday shopping landscape underscores the evolving American consumer: willing to spend but exercising caution. Shoppers are increasingly prioritizing value, thoroughly researching purchases, and showing a rising preference for thrift and discount retail.

Traditional retail faces mounting challenges while second-hand shopping continues to cast off its former reputation. As economic uncertainties remain and prices stay elevated, these consumer trends suggest that thoughtful spending rather than impulsive buying may shape the future retail landscape.