KSHB 41 reporter Olivia Acree covers portions of Johnson County, Kansas. Share your story idea with Olivia.
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Americans are expected to spend a record-breaking $1.01 trillion on holiday shopping this year. According to the National Retail Federations, this will be the first time holiday spending has reached the trillion-dollar milestone.
The massive spending projection comes despite recent economic uncertainties, including a government shutdown that left some federal workers without pay and concerned about basic expenses.
UMKC assistant marketing professor, Rachel Hochstein, explained exactly who is spending more.
"Classically parents have been huge spenders," said Hochstein. "Even if people are cutting back on other things, Christmas is something they're not willing to give up."
Another concerning reality she mentioned is that much of the Christmas spending relies on debt, including credit cards and buy-now-pay-later services, as families prioritize making the holidays special regardless of their financial situation.
Holiday spending encompasses everything from decorations and food to gifts. Local retailers are already preparing for the surge. Brett Goodwin, owner of The Learning Tree toy store in Prairie Village, has been getting ready since summer.
"We even keep the Christmas wrap, Hanukkah wrap available in June, July," Goodwin said.
Despite the record spending predictions, retailers haven't reached their peak season yet.
"We are not yet at our busiest. That certainly happens after Thanksgiving," Goodwin said.
Black Friday, just days away, gives shoppers opportunities to check items off their lists and save a little money.
Hochstein expects the trend of high holiday spending to continue, though consumers may adapt their approach to fit their budgets.
"The holidays mean a lot to people, so they still want to create that magic. Maybe they'll do it in a little more thrifty ways," Hochstein said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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