Los Angeles shoppers are projected to drop $1,627 on holiday goodies this season—still topping the national average, but a cheeky 14% shave from last year’s haul, as economic jitters turn festive frenzy into fiscal finesse. Blame it on tariffs tangoing with tech layoffs, leaving wallets whispering “not today” to impulse buys.
Deloitte’s 2025 holiday retail survey paints a portrait of prudent partygoers. These Angelenos, ever the trendsetters, are channeling their inner MacGyver with homemade gifts that promise more laughs than luxury.
Rebecca Lohrey, Deloitte’s audit and assurance partner, captures the vibe perfectly. “Shoppers in the L.A. metro area—and nationwide—are feeling uncertain about where the economy is headed,” she said, as if economies were indecisive dates ghosting everyone just before mistletoe season.
Californians, already waltzing with sky-high housing costs, now eye Washington’s tariff twirls with suspicion. Prices might pirouette upward, turning a simple stocking stuffer into a small fortune faster than you can say “supply chain snafu.”
Then there’s the tech sector’s talent trim—decades of Silicon Valley sparkle dimmed by widespread job cuts. It’s like the industry that built the future suddenly hit pause, leaving consumers to ponder if their next gadget will come with a side of severance pay.
Earlier KPMG polls caught shoppers plotting to outrun inflation with preemptive splurges. But reality, that ultimate party pooper, flipped the script: three-quarters now brace for pricier presents, while 62% of L.A. locals foresee an economic slowdown—double last year’s worrywarts.
Lohrey highlights the silver lining in this scrimpy saga. “L.A. shoppers are more likely to hunt for deals, give homemade gifts, reuse wrapping, and use tools like social media and AI to plan their purchases,” she noted, turning budget blues into a brainstorming bonanza.
Picture tariffs, inflation, and global goings-on as the uninvited guests crashing the cookie swap. Nationally, 57% expect a U.S. economy wobble in the next six months—the gloomiest forecast since Deloitte started eavesdropping on sentiments back in 1997.
Big retailers are chiming in with their own budget ballads. Walmart’s CEO Douglas McMillon confessed in August that tariff-fueled inventory restocks are hiking costs weekly, like a bad subscription no one signed up for.
PepsiCo, not one to fizz out, rolled out cheaper sippers for squeezed purses. McMillon added a dash of realism: “Not surprisingly, we see more adjustments in middle- and lower-income households than with higher-income ones,” proving that even in La La Land, the high-rollers keep rolling while the rest remix their routines.
Deloitte’s data dazzles with deal-digging devotion: 88% of L.A. shoppers scour for savings, 78% pivot to pocket-friendly brands. It’s as if the Hollywood sign blinked “Bargain Basement” in neon.
Enter the AI sidekick, swooping in like a digital deal detective. About 35% plan to unleash generative tools for price comparisons and shopping scrolls, turning “What should I buy?” into “What won’t bankrupt me?”
Local inflation lingers at 3.5% year-over-year in September, outpacing the national 3% nudge, per the Bureau of Labor Statistics. No wonder six in 10 opt for gift cards as guilt-free gifting—shelling out an average $268 on those versatile vouchers that say “Spend wisely, my friend.”
Self-gifting steals the spotlight too, with clothing and accessories topping the treat-yourself tally. Why not? In a season of giving, a little wardrobe whimsy feels like the ultimate plot armor against economic chills.
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