Are Americans Really Spending More This Holiday Season?

According to the Wall Street Journal, Americans are entering the holiday season with far more spending power than retailers anticipated.

Despite worries about tariffs, economic uncertainty, and rising costs, major retailers such as Walmart, Gap, and TJ Maxx are reporting stronger-than-expected year-end sales.

The trend is driven less by luxury splurging and more by shoppers seeking value, prioritizing deals, discounts, and full-price items that feel worth the money. Gap executives say they are seeing growth across low-, middle-, and high-income groups, a sign that value is cutting across the entire consumer spectrum.

The National Retail Federation forecasts that holiday sales in November and December may exceed $1 trillion, matching or surpassing last year’s performance.

Although some retailers continue to feel the impact of tariffs, weaker categories, or internal missteps, off-price chains like TJ Maxx and Ross are thriving as Americans hunt for better prices.

Even consumers facing tighter budgets or recent layoffs are still planning to buy gifts, just with more careful lists, stricter budgets, and smarter planning.