00:02The steady hum of shoppers, greetings at the door, and displays packed with new merchandise
00:06set the scene inside stores as customers begin holiday shopping.
00:11People are coming in and buying more stuff.
00:13So when they see more, they like to buy more, especially just little gadgets and things like that for gifts and presents.
00:20But Rachel Mulatto, store manager at the Omaha, Nebraska shop, Ashley's,
00:25is one of many retailers who have seen shifts in buying habits this year.
00:30A lot of things are selling out quicker than last year.
00:38Nationwide, the National Retail Federation expects holiday shopping to hit $890.49 per person,
00:46the second highest level on record, just $12 shy of last year.
00:50Thanks so much for coming in.
00:51But does that line up with what many households across the country are experiencing?
00:56Not exactly.
00:57In recent weeks, the government shutdown led to SNAP benefits being delayed and federal workers going weeks without pay,
01:04on top of an unemployment rate on the rise.
01:07All these uncertainties make consumers hesitant to spend.
01:12And for small businesses trying to make it through the season, that hesitation is hard to miss.
01:17At Dust Goods and Gifts in Omaha's Little Bohemia neighborhood, owner Abby Massey says this year feels heavier than most.
01:25I think there's, the people who are shopping are really wanting to shop local.
01:31There is another big push for that shop local, kind of similar to 2020.
01:36It does feel hard this year, harder than other years.
01:40She says foot traffic is steady, but spending isn't.
01:44People are definitely spending less.
01:46We've had to kind of rethink what sort of items are in the store.
01:50And what Massey is seeing on the ground lines up with national trends.
01:54It just doesn't feel like it ever gets easier, and you just have to, like, keep grinding.
02:00A new Wallet Hub holiday survey shows this season feels very different than the sales forecast.
02:05Nearly two in three Americans say the economy will make the holidays less fun this year.
02:1185 percent say they'll spend the same amount or less than last year.
02:1433 percent plan to apply for a new credit card just to cover holiday shopping.
02:20And over a quarter of Americans are still carrying holiday debt from last year.
02:24Labor market is crucial.
02:26So if people don't have a job, people don't have income, people will not spend.
02:31And firms will not be able to sell any goods.
02:34So it's a cycle.
02:35Economists are watching these trends closely, including Jane Liu, assistant professor of economics at the University of Nebraska Omaha.
02:43The labor market is weak, inflation pressure is still high, and the new job openings are decreasing.
02:50Liu says that combination is weighing on holiday spending.
02:53Consumers are looking for values, especially for low-income and medium-income households.
03:00But for high-income households, we don't see that, especially high-income consumption for luxury trips, vacations.
03:09Those consumption are still very strong.
03:11And the Federal Reserve notes a similar pattern that expands well outside of Nebraska, with the Beige Book reporting softer consumer spending and more selective shopping in many communities.
03:22At Ashley's, Mulatto says that doesn't mean the sales floor is quiet.
03:26It just means the work that goes into setting the floors, buying merchandise, studying trends, has to be very intentional.
03:33We like to really think about the customers and what they're looking for.
03:37Those customers are looking for deals, Liu says.
03:41And that reflects a national trend.
03:43Many shoppers are turning to credit to boost their holiday budgets.
03:47Credit is still easy to access, especially with the recent interest rate cut.
03:54All right, $7.47.
03:56Okay.
03:56As families endure a tougher economic season for the holidays, economists are paying close attention to what comes next.
04:03People generally expect in 2026, the economic outlook tend to be optimistic.
04:10People expect more jobs will be created.
04:13Have a nice day.
04:14For Straight Arrow News, I'm Kayleigh Carey.
04:16For more S.A.N. originals, download the Straight Arrow News mobile app or visit S.A.N.com.
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