Thrift Stores Thrive as Returns Decline During Holiday Season

According to Placer.ai, foot traffic at thrift stores surged nearly 11% in the week leading up to Christmas compared to last year. This marks a shift, as second-hand shops typically do not see significant holiday spikes.

“What we’re witnessing is a clear inclination towards discovery-driven shopping,” said Shira Petrack, head of content at Placer.ai. Consumers seem to be increasingly attracted to unique finds and value-driven choices over the standardized offerings from major retailers.

In the latter half of 2025, thrift store traffic climbed by at least 10% year-on-year. Concerns about the environment and tightening household budgets are prompting more shoppers to explore second-hand options. During Black Friday weekend, which is typically dominated by major retailers, thrift store visits still increased by 5.5%.

November alone saw a decline of over 3% in foot traffic at conventional retail stores, while thrift shop visits spiked by 12.7%.

Thrift Shopping Expands Beyond Budget Buyers

An intriguing trend is the changing demographic of thrift shoppers. Data from Placer.ai combined with STI:PopStats indicates that the average household income among thrift store patrons reached $75,000 in October and November—up from $74,900 last year and significantly above $74,100 in 2022.

This shift implies that thrift shopping is no longer exclusive to lower-income households. Wealthier consumers are opting to “trade down,” choosing second-hand items despite having more spending capacity.

This trend is reflected in the corporate sector as well. In the three months ending September 27, U.S. sales for thrift chain Savers Value Village climbed 10.5%, with executives reporting continued growth into October.

“Our base of higher-income customers is expanding,” CEO Mark Walsh informed analysts. “We’re witnessing both a trade-down trend and strong interest from younger shoppers.”

Decline in Returns Indicates Smarter Shopping Trends

Although post-holiday returns are anticipated to rise shortly, preliminary data reveals that consumers are returning fewer items overall this season.

Adobe Analytics reports that return rates during the first six weeks of the holiday season were lower than in the same period last year, with returns falling by 2.5% annually from November 1 to December 12. Following Cyber Week, returns also dipped slightly by 0.1%.

This pattern suggests a shift toward more intentional shopping behaviors. Consumers are conducting thorough research on products and adhering closely to their budgets, said Vivek Pandya, lead analyst at Adobe Digital Insights.

“Shoppers are certainly being more deliberate,” Pandya remarked. “They know precisely what they want and are cautious about their spending.”

Online sales from November 1 through December 12 increased by 6% to $187.3 billion, positioning Adobe to exceed its seasonal projections.

Return Rates Expected to Climb Post-Christmas

While early numbers hint at a decrease, returns are set to rise in the last days of December. Adobe anticipates that returns from December 26 to December 31 will increase by 25% to 35% compared to earlier in the season. High levels of returns are likely to extend into the first two weeks of January, with an increase of 8% to 15%.

Historically, the last week of December captures the most significant share of holiday returns. Last year, one out of every eight holiday returns occurred between December 26 and December 31, a trend Adobe expects to see again this year.

Insights into Consumer Behavior This Season

The 2025 holiday shopping season reflects a clear picture of today’s American consumer: still willing to spend but significantly more cautious. Shoppers are focusing on value, conducting research, and increasingly turning to thrift and discount retailers.

Traditional retailers are facing stiffer competition, while second-hand shopping continues to lose its negative stigma. As economic uncertainty persists and prices are high, these trends indicate that careful spending may define the future of retail rather than impulsive purchasing.