The holiday season is fast approaching, and with it comes the anticipation of increased spending and discounts for shoppers. According to Gartner’s report, “2025 Holiday Advertising and Consumer Trends Marketing Must Address,” three out of four U.S. shoppers expect to pay more this year. However, one in four Americans plan to spend less overall during the holiday season, with 40% expecting fewer discounts.
Discounts have traditionally been a key strategy for retailers to stimulate demand during the holiday season. However, data from Klaviyo suggests a shift in this trend. Klaviyo’s analysis of retail activity over the 2025 Labor Day weekend revealed that sales actually grew compared to the previous year, despite discounts being harder to find.
Specifically, Klaviyo’s data showed a decrease in discount volume in categories such as sporting goods (-8% year over year) and apparel/accessories (-3%), while most other categories remained relatively stable. This could be attributed to leaner stock levels resulting from tariffs or supply chain disruptions, leading retailers to be more cautious with their discounting strategies.
Interestingly, despite the decline in discounts, Klaviyo found that Average Order Value (AOV) in the apparel category increased by $10 compared to the previous year. This suggests that consumers may be willing to spend more even without heavy discounts, signaling a potential shift in consumer behavior.
Moreover, with advancements in technology, retailers now have the ability to target discounts more precisely to individual customers, rather than offering blanket discounts to all shoppers. This personalized approach not only enhances the shopping experience but also allows retailers to optimize their marketing efforts and drive sales more effectively.
As we approach the holiday season, it will be interesting to see how these trends play out and whether consumers’ expectations for fewer discounts will hold true. With the evolving landscape of retail and marketing, staying agile and adapting to changing consumer preferences will be crucial for retailers to succeed in the competitive holiday market.
Overall, the data suggests a shift in the traditional holiday shopping landscape, with consumers showing a willingness to spend more even without heavy discounts. This presents both challenges and opportunities for retailers as they navigate the evolving holiday shopping trends in 2025.