Los Angeles shoppers are focusing on flexibility, convenience and deals this holiday season, according to the 2025 Deloitte Holiday Retail Survey.
More than 400 Angelenos – polled between August and September – expect to spend 14% less during this holiday season, compared to last year. Consumers are concerned about a potential economic recession in the coming months, with almost twice as many respondents expecting a weakened economy in the year ahead.
While the average L.A. shopper is expected to spend more than the national average this holiday season, seven in 10 are still seeking out deals across all income groups.
“What we’re seeing this year is a considerable pullback in the total amount of dollars that they’re planning to spend,” said Summer Taylor, a Deloitte audit and assurance managing director. “They’re being really cautious about how they spend their money and really engaging in value seeking behavior, really looking for those great deals.”
The L.A. results are consistent with a general cooldown in consumer spending across the nation, where 3% more shoppers had planned to shop during Black Friday and Cyber Monday. Yet shoppers are working with a budget that’s 4% lower than last year, according to a separate survey from Deloitte taken in October. Nearly two-thirds of them had plans to use financing options to fill their carts.
With a tighter allowance, L.A. shoppers prioritize value over bluff. The value is not just monetary, however: emotional connections and personalized offers sell, and the more time saved, the better. The surveys found 72% of Generation Z shoppers planned to shop in-person on Black Friday, compared to 49% of all shoppers. Top reasons to shop in-store included doorbuster deals and the enjoyment to shop with friends and family.
“While most shoppers are showing restraint this season, the spending power of Gen Z is growing – they are responsible for about $20 of every $100 holiday dollar spent, compared to just $4 five years ago,” said Deloitte Retail Strategy Leader Brian McCarthy.
Generative artificial intelligence is coming up strong as a tool to find the best deals, summarize reviews and create shopping lists. Thirty-five percent of respondents plan to use artificial intelligence, while a quarter say they are more comfortable using it now than they were six months ago.
“It’s similar to the trends that we saw around social media, being engaged with influencers. I think we’re getting maximum benefit out of that now, and so now we’re taking it to the next level with AI to really drive that personalized engagement through those technology tools.” Taylor said. “I think it’ll be an exciting couple of years as more and more retailers adopt those strategies.”
Shoppers also buy more gift cards than last year to maximize convenience and avoid stress. The survey saw a 11% increase in gift card purchases by percentage of shoppers and 8% by share of spend.
“They’re looking for ways to de-stress during the holidays, and that’s a super easy way to tell someone, hey, I care about you. Here’s a gift, but it’s not going to take them a ton of time and effort to get that,” Taylor added.
Deloitte noted in its Holiday Retail survey – marking 40 years since its inception – that there would be less spending on electronics, which Taylor attributed to a stall in new, must-have technologies in the market. Toy sales, however, will stay flat as consumers are working with smaller budgets. While a final report on Black Friday and Cyber Monday shopping sprees is still in the works, Taylor noted a strong surge in online sales, which she attributed to the convenience factor.
“It’s also a way to be really targeted with your dollars,” said Taylor. “You can research ahead of time where the deals are going to be and make sure that you’re hitting those deals.”