As the 2025 holiday season approaches, consumer optimism is tempered by financial caution. Katapult’s new report, Holiday Spending in 2025: Trends, Tensions & Takeaways, surveyed nearly 3,000 U.S. consumers to understand how shoppers plan to spend this year.
Cautious Consumers, Strategic Spending
As the 2025 holiday season approaches, 73% of shoppers plan to spend the same or less than last year, and nearly 80% say they feel financial pressure heading into the holidays. Even so, many plan to make selective, higher-value purchases, investing in items that enhance their homes or deliver long-term utility.
According to Katapult’s survey, 31% of consumers plan to buy furniture this season, 52% are shopping for electronics, and 40% are shopping for toys. This mix suggests that while overall budgets may be constrained, demand for big-ticket categories remains resilient, especially when retailers offer affordable, flexible payment options that make these purchases attainable.
Affordability Becomes a Deciding Factor
Affordability and accessibility are shaping how and where consumers shop.
- 84% of respondents say they would consider using Lease-to-Own (LTO) this season.
- 89% agree that flexible payment options like LTO make larger purchases more attainable.
As discretionary budgets tighten, payment flexibility is becoming a key conversion driver. Retailers offering flexible options like LTO or Buy Now, Pay Later (BNPL) can capture customers who might otherwise delay or downsize their purchase.
What This Means for Home Furnishings Retailers
In a flat-spend environment, the winners will be those who align their checkout experiences with consumer realities—making it easy, affordable, and seamless to buy. Transparent payment options, accessible messaging, and empathetic sales conversations will be essential in building loyalty in an uncertain economy.
Learn More
Download Katapult’s full report, Holiday Spending in 2025: Trends, Tensions & Takeaways, for deeper insights into how affordability pressures and alternative payments influence purchase decisions this holiday season.
Download the report here.
