Make Me Smart Shopping through a K-shaped holiday season
Dec 5, 2025
Kristin Schwab, a Marketplace correspondent and retail expert, shares insights into this holiday season's shopping landscape. She discusses the intriguing K-shaped economy, where high earners push retail spending, while many consumers feel cautious. Early data reveals record-breaking spending, despite concerns about rising credit card debt and the buy now, pay later trend. Kristin also highlights the creeping influence of AI in shopping and a notable shift towards purchasing secondhand gifts, aligning with sustainability trends.
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Holiday Spending Beat Expectations
- Early holiday data showed spending up over 7% year-over-year, outpacing inflation and expectations.
- Deep, concentrated discounts and big-ticket purchases drove much of the surge, especially electronics and furniture.
K-Shaped Economy Splits Holiday Behavior
- The K-shaped recovery explains contradictory signals where many feel worse while high earners keep spending.
- Nearly half of retail spending comes from the top 10% of earners, amplifying that split.
Debt Signals Both Strain And Confidence
- Rising holiday borrowing reflects both strain and optimism among consumers using credit and buy-now-pay-later.
- Some shoppers may be confident they can pay later, while others accumulate risky debt.