Holiday Consumer Spending Confidence 2025: Insights from Tanger CEO Stephen Yalof

The 2025 holiday shopping season has showcased the resilience of American consumers. Despite fluctuating confidence in the economy, spending levels remained strong across major retail centers, including Tanger Factory Outlet Centers. According to Tanger CEO Stephen Yalof, shoppers are more strategic than ever — cautious about costs, yet eager to take advantage of good deals and promotions. This combination has defined the season’s retail momentum and shaped a new understanding of how modern consumers behave during uncertain economic times.

Strong Sales Amid Economic Uncertainty

While headlines often highlight concerns about inflation, high interest rates, and tighter household budgets, retail activity during the holidays painted a far more optimistic picture. Tanger outlets across the country experienced vibrant foot traffic throughout November and December. Shoppers turned out in large numbers, especially on key weekends and promotional events, signaling that the appetite for holiday shopping remains robust.

Consumers may be more selective in their purchases, but that doesn’t mean they are avoiding stores. Instead, they are prioritizing value — searching for the best possible price on quality products. The result has been a steady flow of customers who still want to celebrate the holidays but do so thoughtfully and intentionally.

The Value-Seeking Mindset Defines the Season

Stephen Yalof emphasized that today’s holiday shoppers are motivated by value. They are no longer impulsive buyers chasing luxury for its own sake; rather, they’re deal-driven, practical, and more informed. The growth of online research and price comparison tools has empowered consumers to plan purchases around timing and discount cycles. As a result, many retailers found that offering early deals or extended sales helped attract and retain customers through the full holiday period.

“Consumers are looking for reasons to shop — and value gives them confidence,” Yalof noted in his remarks. He explained that retailers who met these expectations through well-structured promotions were rewarded with steady sales and returning customers.

Discounts and Promotions as Growth Engines

Retailers that adapted quickly to consumer sentiment thrived. Many introduced deeper discounts earlier in the season, moving away from the traditional strategy of waiting until December to run markdowns. This proactive approach created consistent momentum and helped maintain store activity even before peak shopping weekends.

At Tanger’s outlet centers, shoppers could find luxury and premium brands offering meaningful markdowns, often combining end-of-season clearance with holiday promotions. This pricing flexibility resonated with value-driven shoppers, reinforcing outlet centers as one of the strongest retail performers of the season. It also showed that brand strength and discount strategy can coexist — premium products still attract attention, especially when consumers feel they are getting a genuine deal.

Why Spending Confidence and Economic Confidence Differ

One of the most interesting insights from this year’s holiday shopping season is the gap between what consumers say and what they do. Surveys suggest that consumer confidence — the psychological measure of how people feel about the economy — remains uncertain. However, actual spending patterns tell a different story. Many households continue to spend consistently, especially when they see clear value for their money.

This apparent contradiction reflects how modern consumers have adjusted to post-pandemic economics. People are aware of inflation, but they’ve adapted their habits accordingly. They may cut back on unnecessary items, yet they won’t hesitate to purchase when a product or promotion aligns with their sense of value. In other words, the focus has shifted from “Can I spend?” to “Is this worth it?”

Retailers Meeting Customers Where They Are

For retailers, the lesson from 2025 is clear: meet consumers where their confidence lies — in value, transparency, and experience. Tanger’s model exemplifies this approach. Outlet centers have traditionally thrived by offering a mix of recognizable brands and competitive pricing. This year, that formula proved even more effective, as shoppers prioritized affordability without compromising quality.

Yalof highlighted that understanding customer psychology is now as important as inventory planning. Retailers who anticipate hesitation and proactively offer assurance through discounts, loyalty rewards, and seamless service are the ones who sustain growth. He also noted that creating an enjoyable in-person experience — one that feels celebratory, social, and stress-free — plays a key role in encouraging repeat visits.

Early Shopping and Extended Sales Windows

Another defining feature of 2025’s retail landscape is the expanded sales calendar. Holiday shopping began earlier than ever, with promotions kicking off in late October and continuing past New Year’s Day. This extended cycle gave consumers flexibility and reduced the last-minute rush, leading to more evenly distributed sales across the season.

Early deals also helped consumers plan better. Instead of splurging all at once, many spread their spending over several weeks, allowing them to manage cash flow while still enjoying seasonal purchases. For retailers, the extended shopping window offered opportunities to test promotions, adjust inventory, and sustain marketing visibility across multiple peaks of demand.

Physical Shopping Retains Its Appeal

Even in an increasingly digital world, the draw of in-person shopping remains strong. At Tanger outlet centers, physical traffic surged as families sought the tangible experience of holiday shopping — walking through decorated centers, trying on items, and enjoying the festive environment. Many shoppers reported that visiting physical stores helped them make quicker and more confident purchase decisions compared to browsing online.

This trend suggests that while e-commerce continues to grow, physical retail plays a unique emotional role. It offers a sense of immediacy and connection that digital platforms can’t replicate. Yalof remarked that the combination of strong in-store promotions and engaging customer service can transform ordinary shopping trips into memorable experiences — a key reason why Tanger continues to perform well against online competitors.

The Hybrid Shopper: Blending Online and Offline Habits

Of course, shoppers are no longer strictly online or offline. Many use digital channels to research products, check availability, and read reviews before visiting stores to complete their purchases. Retailers who successfully merge both worlds are achieving the best results. Features such as “buy online, pick up in store” or exclusive online discount codes for in-store use help bridge this hybrid experience seamlessly.

This hybrid pattern reinforces a simple truth: convenience and value now go hand in hand. Consumers want to save both time and money, and technology makes it possible for retailers to meet that expectation at every touchpoint.

Key Takeaways for Retailers

• Value is the new confidence: Consumers may be cautious about the economy, but clear savings and smart deals restore their willingness to spend.
• Discounting works when it’s strategic: Retailers who align promotions with consumer intent drive stronger and steadier traffic.
• Experience still matters: The tactile, festive environment of physical stores continues to attract shoppers despite e-commerce growth.
• Plan for a longer sales cycle: Early and extended promotions allow for better demand forecasting and inventory control.
• Integrate online and offline channels: Hybrid strategies deliver convenience, engagement, and loyalty.

Looking Toward 2026: What’s Next for Retail Confidence

As retailers close out 2025, the data and observations from this holiday season will shape strategies for the year ahead. Consumer behavior is evolving toward practical optimism — a mindset that balances awareness of economic challenges with a desire to enjoy life’s moments meaningfully. Retailers that continue to prioritize transparency, pricing clarity, and engaging experiences will remain top of mind for shoppers.

Stephen Yalof’s outlook for 2026 is cautiously optimistic. He believes that retail success will increasingly depend on understanding not just what consumers can afford, but what they value emotionally and psychologically. The new retail equation combines trust, affordability, and experience — and those who master it will thrive in any economic climate.

Conclusion: A Confident Season for Smart Shoppers

The 2025 holiday shopping season proved that consumer spending confidence is not just about optimism — it’s about strategy. Shoppers are redefining what confidence means: it’s the ability to make informed decisions, find genuine value, and enjoy the process of buying. Retailers like Tanger Factory Outlet Centers that recognize and adapt to this evolution are setting new benchmarks for success in a changing market.

As we move into 2026, one thing is clear: consumers are still willing to spend, but only when it makes sense. That blend of discipline and enthusiasm may be the healthiest sign of confidence the retail world could hope for.