Holiday shoppers surprise retailers with value-first splurge

America’s biggest retailers are finding that consumers haven’t stopped spending; they’re just being choosy. 

Despite worries about tariffs and a shaky economy, shoppers are opening their wallets when they feel they’re getting good value. Strong results from Walmart, Gap, and TJX point to a healthier holiday season than many expected.

Walmart says US customers are still buying, especially middle- and higher-income shoppers who are now hunting for deals at big-box stores. 

Gap reports growth across all income levels and is selling more items at full price, a sign that shoppers are willing to pay for what they like. Off-price retailers like T.J. Maxx and HomeGoods are thriving as bargain hunters chase name brands at lower prices.

The National Retail Federation expects holiday sales to rise 3.7% to 4.2% from last year, crossing the $1 trillion mark. 

Tariffs and tighter budgets may create bumps, but value-focused shopping is keeping retailers optimistic.