Marketplace All-in-One Shopping through a K-shaped holiday season
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Dec 5, 2025 Kristin Schwab, a Marketplace correspondent, dives into the curious landscape of the holiday shopping season. She unveils the K-shaped economy, illustrating how high earners are fueling retail spending despite overall consumer caution. Findings show that November's spending surged by over 7%. Kristin also touches on the rise of credit card debt and the 'buy now, pay later' trend, sparking concerns about accumulated consumer liabilities. They discuss the growing, albeit small, influence of AI on shopping habits and the increasing popularity of secondhand gifting.
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Mixed Signals Ahead Of Holiday Season
- Retailers entered the season nervous because consumer signals were mixed between weak confidence and high spending forecasts.
- The National Retail Federation's optimism contrasted with muted September retail sales, making forecasts hard to trust.
Spending Rose Beyond Inflation
- Early data showed November 1–December 2 spending up over 7% year over year, outpacing inflation.
- Electronics, apparel, and furniture drove most Cyber Monday dollars, signaling consumers bought higher-ticket items.
K-Shaped Economy Drives Spending Divide
- The K-shaped recovery explains the contradiction between poor consumer sentiment and robust spending.
- Nearly half of retail spending comes from the top 10% of earners, who can absorb higher costs and maintain purchases.