Denver’s Holiday Shopping: Tariffs, Uncertainty, and Local Impact
As the holiday season approaches, Denver-area retailers and shoppers are navigating an unpredictable economic landscape. With concerns over tariffs and inflation, consumers are planning to rein in spending, creating a challenging environment for local businesses.
Consumer Spending Forecast: A Tighter Wallet This Year
A recent Deloitte survey of Denver-area shoppers paints a clear picture: average holiday spending is projected to decrease by about 14% this year, dropping from $1,782 per household in 2024 to $1,526. This local trend mirrors a national decline, where average spending is expected to fall by 10%.
The survey reveals that 81% of respondents anticipate paying more for gifts, and a significant 67% believe the economy will weaken in the coming year—a sharp increase from 34% in 2024. These sentiments indicate that economic uncertainty is a primary driver behind the planned reduction in holiday expenditures.
Where Denver Shoppers Plan to Spend
Deloitte’s findings also highlight shifting shopping habits. Roughly 49% of Denver-area respondents plan to shop at more affordable retailers over their preferred ones. Experiential gifts, such as dining out or event tickets, are on the list for 53% of those surveyed. Online shopping will be the first stop for 40%, while 35% expect to spend most of their money at big-box stores. Specialty retailers, including many local shops, are expected to capture about 19% of spending.
| Category | 2024 Average Spending | 2025 Projected Spending | Change |
|---|---|---|---|
| Denver-Area Household | $1,782 | $1,526 | -14% |
| National Average Household | $1,778 | $1,595 | -10% |
Local Businesses Juggle Rising Costs and Cautious Consumers
For small businesses like Hannah Cox and Jessie Gingrich’s Mountain Standard Goods, a clothing and gift shop in Denver’s Baker neighborhood, tariffs have presented significant challenges. They’ve faced higher prices on imported goods, leading to difficult decisions about pricing and inventory. Products with substantial tariffs, like a men’s shaving care brand from Canada or a popular shirt, have been dropped due to unsustainable price increases.
Luke Johnson, founder and CEO of Luke & Co. pet store on Broadway, refers to the holidays as “our Super Bowl.” While he predicts a 10-20% sales boost, this comes after a difficult first half of the year marked by tariff volatility. Johnson noted that most pet food is produced in the U.S., but ingredients like rabbit, beef, and lamb, along with many toys and packaging, are imported, driving up costs that must eventually be passed on to consumers.
Strategies for Local Retailers
Robert Ried, a principal at Deloitte focusing on retail, advises local businesses to “put my best foot forward this holiday.” He suggests emphasizing their local roots and making shopping as easy as possible, including maintaining a strong online presence to showcase their offerings.
National Optimism vs. Local Realities
Despite local apprehension, the National Retail Federation projects a more upbeat national holiday shopping season, anticipating retail sales to surpass $1 trillion for the first time, potentially rising up to 4.2% over 2024. However, this optimism is tempered by observations of fewer seasonal hires and the potential impact of government shutdowns on consumer demand.
Hunter Nelson, director of the Colorado office of the Small Business Majority, confirms that Colorado businesses are indeed holding off on seasonal hiring and are cautious about stocking up due to tariff-induced price hikes and reduced consumer confidence. A national survey by her organization found 60% of small businesses paid higher costs for imported goods, with over half reporting increases of 10-25%.
FAQs About Denver’s Holiday Shopping Season
- Why are Denver shoppers expected to spend less this year?
A Deloitte survey indicates concerns about a weakening economy and anticipated higher prices for gifts are leading consumers to plan for reduced spending. - How have tariffs impacted local businesses like Mountain Standard Goods and Luke & Co.?
Tariffs have increased the cost of imported goods and ingredients, leading to higher product prices, difficult inventory decisions, and pressure on profit margins for local retailers. - What advice is given to local businesses for the holiday season?
Experts recommend emphasizing local identity, building a strong online presence, and making the shopping experience as convenient as possible for customers. - What percentage of spending do Denver shoppers plan for specialty retailers?
Approximately 19% of Denver-area respondents plan to spend most of their holiday budget at specialty retailers, highlighting the importance of standing out in a competitive market. - Why is supporting local businesses important during this time?
Roughly 68 cents of every dollar spent at a small, local business stays within the community, supporting local families and the broader economy.
This holiday season, consider prioritizing your spending with local Denver businesses. Your purchases help keep money circulating in our community, supporting the unique shops and services that make Denver vibrant.
Denver Consumers Cut Holiday Spending
