With prices rising steadily throughout 2025, consumers are paying more attention to how much items cost this winter than ever, much to the detriment of customer loyalty. A new survey from Clever Real Estate reveals that more than 60% of Americans would choose cheaper prices at big-box retailers over supporting small businesses.
However, price tags aren’t the only things guiding consumer spending. Politics has officially entered the holiday chat, with about 25% of survey respondents saying they’ll avoid shopping at certain businesses because of their political stance.
The intersection of consumer spending with political and cultural issues poses an additional challenge for retailers, who are already navigating higher costs due to tariffs. Small businesses are especially vulnerable, as many customers now also want to ensure a company’s values align with their own.
Consumer Preferences May Mean Challenges for Small Businesses
This holiday and winter season, shoppers are focused on finding the right gift. According to Clever’s survey, 91% of them will shop at major retailers, while 60% will shop at small businesses. That’s already a significant hurdle for small business owners to overcome, without throwing price competition into the mix.
“Shoppers are deciding not only what they like, but what feels appropriate and easy to gift,” said Amber Taylor, owner and creative director of Pink Cove. “That makes clarity around pricing, product details, and presentation especially important during the holiday period.”
Consumer prices rose 2.7% year-over-year in November 2025, making it more difficult for individuals to afford their homes, utilities, and food — not to mention potential gifts. For instance, the prices of audio equipment, jewelry, and recreational books are up 10.2%, 8.3%, and 7.1%, respectively.
With these increases, shoppers are looking for relief. Not only would a majority of those surveyed abandon small businesses for lower prices at big-box stores, but 15% also say they’d opt for charity shops and other budget-friendly options, such as Goodwill or the Salvation Army.
Blake Shelhamer, CEO and founder of Blake Jewelers, said the “middle consumer” — those spending $500 to $5,000 — has all but disappeared from his industry. As a result, he and other jewelers are scrambling to adjust to meet lower and higher price points.
“People are far more aware of prices, far more likely to try to negotiate, more likely to search for and use coupons, and far more responsive to ‘flash deals’ and ‘doorbusters,’” he said. “This feels like the Clearance Christmas from my anecdotal observation so far.”
How Politics Are Guiding Shopper Choices
Shoppers are also letting political affinity drive their purchases. Throughout the year, 2025 saw boycotts for major retailers like Target, Amazon, Home Depot, and Walmart, and younger generations are more likely to avoid certain retailers than baby boomers. What’s more, 56% of consumers say they’d feel uncomfortable receiving a gift from a retailer they oppose, and 37% would judge their family members or friends for shopping there.
“Shopping increasingly reflects personal identity and lifestyle,” Taylor said. “Customers are more selective about the brands they align with when purchasing gifts. This selectivity becomes more visible during peak shopping periods.”
Experts say gifts can be a form of self-expression for both the giver and the receiver. Customers often look for presents that feel personal, placing greater emphasis on their meaning and relevance.
Having shoppers align their values with a business’s is hardly new — a 2022 survey found that 82% of consumers want to share values with the brands they support. Thanks to social media and a 24-hour news cycle, retailers big and small have their company values on full display, making it easy for individuals to see which causes they support.
“Shoppers now have access to information and more options, which makes choices feel more intentional,” said Josh Neuman, an e-commerce marketing professional and the founder of Chummy Tees. “Holiday shopping involves more comparison and consideration than it used to.”
Ultimately, though, prices hold more sway than principles — nearly 60% of shoppers would buy from a retailer they don’t agree with politically to save money. Consumers are also more likely to boycott a retailer for non-political reasons, such as poor customer service.
The Tariff Effect on Holiday Shopping
Tariffs have been an additional challenge for retailers and consumers, and everyone has had to adjust. Some people have opted to sell their house as-is and take a loss rather than pay higher renovation costs. Similarly, some store owners tried to stock up on certain items ahead of tariffs and may now be stuck with inventory they can’t move.
Those hoping for relief by the end of the year have been disappointed. In fact, 72% of survey respondents believe this was the most expensive holiday season yet, thanks to tariffs. As of November, Yale’s Budget Lab estimates the average effective tariff rate to be 16.8%. This equals a 1.2% price-level increase and a $1,700 loss for the average household.
“Retailers will find any clever way they can to hide price increases, but an increase in cost will always result in a higher price,” Shelhamer said.
Most small businesses can’t absorb the higher costs from tariffs, which could force them to raise prices on certain items. Or, to avoid increasing prices, small business owners may offer fewer sales or seasonal discounts instead. Shoppers are sure to notice this, though, and change their typical shopping habits.
About 30% say they’ll look for cheaper alternatives, 26% will skip purchasing the items, and 20% will buy fewer gifts to afford the ones they want. In short, they’ll become more conservative. Rather than experimenting with new styles or trends, shoppers will stick to reliable, practical favorites.
“This makes value perception especially important when customers are comparing gift options,” Neuman said. “The desire to buy meaningful gifts isn’t new, but the process has changed.”