As of the afternoon before Thanksgiving, holiday shoppers were packed into Rockefeller Center. It was Black Friday, November 26, 2025 and the venerable downtown shopping district throbbed with energy. Consumer optimism helped ring in the holiday shopping season. Consumer enthusiasm waded into the holiday season fare despite rising worries about high prices. The mood was palpably charged as shoppers jammed shops and street markets looking for Christmas presents.
Consumer spending continued its robust performance as Americans opened their wallets wide in November. According to new data, adjusted for inflation, consumer spending rose by 0.3%. This increase is a positive indication that most consumers are still willing to pay for things, even with the economic strain put forth with skyrocketing costs.
Elevated prices lingered on consumers’ minds. Inflation remained higher than normal throughout November, affecting purchasing decisions and overall consumer sentiment. A report released on inflation provided previously unreleased data for October, revealing complexities in the economic landscape that consumers navigate.
Economists had expected a 0.2% increase in inflation from October’s levels. On top of that, they forecasted inflation to rise by 2.8% for the year ending in November. Together, these figures paint a stark picture of the continued economic pain caused by elevated prices. Just as this double-whammy is hitting nonprofits, many people are more willing to spend big around the holidays—creating a perfect storm.
In spite of these obstacles, the mood at Rockefeller Center was still electrifying as hundreds of shoppers experienced the iconic American holiday hustle for all its glory. The iconic Christmas tree and festive decorations drew crowds, creating a sense of community and celebration amid economic uncertainty.
Across sectors, retailers have shared their experiences trying to find their way through the unusual economic changes we’ve seen. Others have adjusted their marketing approach and inventory to attract more bargain-hunting shoppers without losing that holiday sparkle. The latter have struggled to balance their inventory to the shifting consumer demand driven by inflation worries, among other factors.
Even as the holiday shopping season starts to come into focus, how retailers are continuing to reach new customers—and keep them—is changing by the week, if not day. It’s no secret—retailers are more aggressive with promotion and discounting to drive sales than ever before. Given the current environment with more conservative consumer behavior, this strategy is essential.