Consumers plan to spend an average of $890.49 per person on holiday gifts, decorations and other seasonal items this year — the second-highest amount on record, just 1.3% below last year’s all-time high of $901.99 — according to a newly released National Retail Federation (NRF) survey.
Early shopping also continues to be popular, with 42% of respondents indicating that they plan to begin at least browsing and buying for Christmas, Hanukkah and Kwanzaa before November. However, 63% plan to wait until the traditional Thanksgiving weekend timeframe to do most of their shopping (up from 59% in 2024).
“Kentucky retailers are ready to make this holiday season merry and bright for shoppers across the Commonwealth,” said Tod Griffin, president of the Kentucky Retail Federation. “Despite lingering economic uncertainty, consumers plan to shop early for their loved ones — and our local businesses big and small are prepared to help them find those perfect gifts and celebrate the spirit of the season.”
The NRF survey found that the current overall unsettled economic environment remains top of mind, with 85% of Americans expecting to pay higher prices because of tariffs.
Consumers ranked their most popular holiday shopping destinations as: online (55%), grocery stores (46%), department stores (44%) and discount stores (42%).
According to the survey, top items on respondents’ personal gift lists include: gift cards (50%), clothing or accessories (46%), books and other media (27%), personal care or beauty items (23%) and electronics (22%).
A separate survey by the NRF revealed that retailers estimate that 15.8% of their annual sales will be returned this year — totaling nearly $850 billion. This rate is significantly higher (19.3%) among online purchases.
Ahead of the winter holiday season, retailers noted that they plan to manage holiday returns by: increasing focus on third-party logistics partners (49%), hiring seasonal staff to handle returns (43%) and extending return windows (37%).
The Kentucky Retail Federation is a non-profit trade association representing diverse businesses across the Commonwealth — from department and drug stores to hardware, apparel and building supply retailers.
For more information about the KRF, please visit kyretail.com.
Kentucky Retail Federation