Nearly two-thirds of shoppers plan to skip some purchases this year, including staple items like costumes and candy, a new LendingTree survey finds, highlighting a broader shift in consumer behavior as persistent inflation and economic uncertainty weigh heavily on household budgets across the United States.
The findings illustrate a growing cautiousness among holiday shoppers who are grappling with higher costs for everyday necessities, forcing many to reevaluate their spending on seasonal celebrations. Even traditionally resilient holidays like Halloween are feeling the pinch, as families look for ways to trim expenses wherever possible. About a third of Halloween shoppers are cutting back on decor for the season, opting to reuse items from previous years or forgo home decoration altogether in an effort to keep costs manageable.
Though many consumers are spooked about affording their Halloween purchases, some consumers are more financially strained than others. The financial burden is not distributed evenly across different age groups, with younger generations bearing the brunt of seasonal debt. Roughly four in 10, or 43%, of Generation Z respondents said they are likely to take on Halloween debt this year, followed closely by 35% of millennials. By contrast, only 14% of Generation Xers and a mere 2% of baby boomers said the same, pointing to a stark generational divide in how holiday spending is funded and managed.
For many younger consumers, the desire to participate fully in social and seasonal activities often clashes with limited disposable income, leading them to rely on credit cards or other forms of short-term borrowing. Among those who have taken on debt to fund their Halloween fun, 51% said they regret overspending. Those respondents cited pressure to keep up appearances on social media and elsewhere, alongside higher-than-anticipated prices, as the top two reasons why they exceeded their budget.
This regret underscores the psychological and financial toll that seasonal consumerism can exact, particularly when unexpected price hikes catch shoppers off guard. Indeed, prices have increased noticeably leading up to Halloween, including in holiday staples like children’s toys and seasonal goods. Toy prices rose 4.2% between August and September alone, according to the U.S. Bureau of Labor Statistics’ Consumer Price Index. Compared to a year ago, toy prices jumped a significant 6.6% in September, putting additional pressure on parents and gift-givers who are already stretching their finances thin.
To navigate these inflationary pressures, many holiday shoppers have proactively adapted their buying habits. Consumers have taken advantage of early-season discounts and started shopping well in advance to spread out expenses and stretch their budgets. This shift toward early shopping reflects a broader sense of financial insecurity among the American public. Nearly half, or 45%, of respondents to an Ibotta survey said their finances are insecure, and over 70% said they are focusing heavily on saving money this year rather than indulging in discretionary purchases.
The macroeconomic outlook is also influencing consumer sentiment and retail choices. Though seven in 10 shoppers surveyed said they can easily afford their immediate Halloween purchases, roughly four in 10, or 42%, anticipate the economy deteriorating in the year ahead, according to a Deloitte survey of 1,500 U.S. shoppers. This underlying anxiety is driving a distinct change in where consumers choose to spend their money.
Value-seeking behavior has become the norm, with shoppers shifting away from traditional specialty stores in favor of more economical options. More than half of shoppers are buying their Halloween items at grocery stores, taking advantage of one-stop shopping trips for both household necessities and holiday goods. Meanwhile, 40% of consumers are shopping at discount stores for the holiday, utilizing big-box retailers and discount chains to find lower prices on candy, costumes, and decorations.
Similarly, another comprehensive survey conducted by the National Retail Federation found that nearly four in ten, or 39%, of consumers cited discount stores as their top destination for Halloween products. This heavy reliance on discount retailers highlights a broader retail trend that has dominated the economic landscape over the past year. As shoppers navigate rising costs across all categories of retail goods, they are continually seeking out ways to maximize their purchasing power without sacrificing the traditions that bring enjoyment to their families. Retailers, in turn, are responding by emphasizing value, promotional events, and early-bird discounts to capture the attention of budget-conscious consumers who are carefully guarding every dollar they spend.