Black Friday on a Budget: How Discipline and Deals Shaped Holiday Shopping in 2025

America’s consumers intensified their script flip of retail’s most hyped event. A relatively tepid 151 million shoppers turned out for Black Friday, 7% less than last year, the latest PYMNTS Intelligence data shows. So much for the festive store windows and free gift buckets at Lowe’s: The number of people shopping in-store plunged 11%.

Restraint ruled. Thirty-seven percent of consumers bought fewer items than last year—up seven percentage points on 2024’s level, and a sign of increasing pocketbook strain and disciplined budgeting amid inflation, cost of living pressures and the impact of tariffs on imports from toys to furniture.

But wait, there’s more.

Whether they snapped up online discounts for Supergoop! sunscreen or a 65” flat screen TV-sized box of Kraft Mac & Cheese from Walmart.com, millions of Americans leaned further into digital buying. The number of online shoppers spiked 7%, with 77% of all consumers purchasing on their mobile phones or computers. Half of all shoppers, including two in three Gen Zers, used conversational AI tools to help them complete their purchases. The average consumer spent $295, about $9 more than last year, but bought fewer items, indicating that they trimmed their shopping lists, not their budgets.

With pocketbooks strained for two-thirds of Americans, strategizing how to pay dominated. Nearly 60% of the more than two in 10 consumers living paycheck to paycheck with difficulty paying monthly bills used their credit cards to pay in fixed installments. More than one in two Gen Zers used card rewards to do the heavy lifting. Buy now, pay later nudged up slightly to 11.9% of all purchases from 11.7% last year.¹

These are just some of the findings detailed in “Black Friday on a Budget: How Discipline and Deals Shaped Holiday Shopping in 2025, a PYMNTS Intelligence report. It draws on insights from a survey of 2,183 U.S. adult consumers from Nov. 28, 2025, to Nov. 29, 2025.

• The Black Friday Retreat
• Hey, Big Spender
• Pay Later and Credit Card Rewards Do Heavy Lifting
• Rewards Drive Black Friday Spending Behavior
• AI Use on Black Friday Gets Practical
• Implications and Opportunities
• Methodology

The Black Friday Retreat

The reality of Black Friday has long been drifting from its core marketing premise. Amid growing pocketbook strain and the ability to use AI to monitor prices and track down deals year-round, shoppers are less inclined to buy into the pitch of scarcity of popular items, doorbuster pricing, fear of missing out and blanket cultural permission to spend and indulge on the day after Thanksgiving. By increasingly doing their holiday shopping earlier and strategizing the best ways to maximize both value and financial leverage, consumers have made the retail phenomenon less an event and more an extended shopping window that competes with other attractive options.

The shopping juggernaut still pulled in crowds, with 151 million consumers making at least one purchase on Friday Nov. 28. Yet the slowdown over time is unmistakable, and older generations are leading the retreat. Nearly seven in 10 adult consumers (68%) showed up, a 7% drop from last year. The collective ‘no thanks’ cut across generations. Participation by bridge millennials sank to 74% from 82%. The share of Gen X shoppers participating declined to 67% from 73%. Boomers dropped below the halfway mark, to 49% from 55%.

In-store versus online Black Friday sales

This year’s Black Friday further reinforced how digital commerce continues to erode brick-and-mortar shopping. The share of shoppers piling into physical stores plunged 11% (from 56% to 50% of all consumers). By contrast, online shopping climbed 7%, with 77% of all consumers making at least one purchase that way.

The sweet spot for retailers with online operations is higher earners, who account for half of all consumer spending.

More than eight in 10 (83%) consumers with annual incomes of more than $150,000 bought that way. As income declines, shoppers are less likely to buy online and more likely to step into a store. Some 68% of consumers making less than $50,000 a year shopped online, the lowest rate for all income brackets.

Millennials were the most likely to make at least one purchase online, at 82%. Still, other generational cohorts were very close or not far behind, underscoring the wide span of retail commerce’s digital shift.

Black Friday loses its exclusivity

The shopping event has evolved significantly since the 1950s, when police officers in Philadelphia reportedly coined the term “Thanksgiving Black Friday” as they tried to control swarms of suburban shoppers flooding into the city’s department stores downtown. Marketers jumped in to shift the origin story to convey the day retailers went from red-ink losses to profitable and in the black. By the ‘80s, retailers heavily promoted price discounts, rebates and coupons on goods from toys and clothing to cookware and jewelry, tapping into shoppers’ love of a deal and the thrill of the hunt. The FOMO reached a fever pitch; in 2008, hordes of pre-dawn shoppers who had camped out at a Walmart on Long Island smashed through the big box’s glass doors and trampled to death an employee. That year, America’s biggest retailer was selling discounted plasma high-definition TVs and Incredible Hulk DVDs for $9.

With the rise of digital shopping, those days appear to be gone. So does Black Friday’s “exclusivity.” In 2023, just 15% of consumers did most of their holiday buying before the event. This year, 46% did. Discounts start early, and so does consumer spending.

Hey, Big Spender

Consumers spent about $9 more this year on average, or $295. Amid the lower turnout, that is significant: The two data points suggest that more people stuck to a financial plan this year and made purchases fit their budget, instead of simply buying desired items without regard for a budget. Rather than overspending, more consumers managed their financial stress by shortening their purchase lists.

The generational divide

Millennials led the spending charge. They forked over an average $464, nearly $100 more than last year, handing retailers a clear target for marketing and loyalty offers.

Whether because their retirement pocketbooks are tight, they do their holiday shopping before the event or their material convoy is already large enough, boomers were the most frugal, spending on average $151, below last year’s $163.

The financial lifestyle divide

With 22% of Americans living the most pressing form of a paycheck-to-paycheck lifestyle, i.e., struggling to pay their monthly bills, budgets for a broad swathe of America were particularly constrained this season. Those shoppers were 30% more likely to say they bought fewer items, likely due to higher prices from tariffs and the desire to stick to a budget. Nearly as many (29%) said this year’s items were more expensive than they expected.

The larger finding is that not just the financially strapped made fewer purchases. Nearly four in 10, or 37%, of all consumers bought less stuff this year, more than the 30% last year. Even higher earners dialed things back. One in three with an annual household income of $100,000–$150,000 purchased fewer items, an increase from last year’s 30%.

That’s significant because when consumers reduce the number of items they buy, total consumer demand falls, even if overall spending remains steady or grows. That in turn suppresses real consumption growth and weakens the volume side of retail sales, which is a key contributor to the consumer spending portion of GDP.

Santa’s sleigh

As they have been for years, Amazon and Walmart were the anchor destinations for millions of Black Friday shoppers, both online and in-store. But one retailer may be losing its edge.

Just under six in 10 (59%) of in-store shoppers made in-store purchases at Walmart, down from 63% last year. Target, bucking the broader trend of declining in-store sales, captured 44% of in-store shoppers, up from 40% last year.

Meanwhile, nearly three in four (72%) online shoppers made purchases at Amazon, a share that has remained stable over the past five years.

Practical and essential gained dominance. As price and value sharpened their places in shoppers’ thinking, the share of consumers who bought essential items for themselves swelled from 32% to 39%. The share of people who bought essentials for friends, family members and others rose from 29% to 34%. Splurging on oneself dipped: 45% of shoppers did that this year, down from 53% last year. Nearly four in 10 (39%) bought essentials for personal use, up significantly from 32% in 2024.

But discretionary purchases weren’t cast aside–instead, they changed. The share of consumers buying fun experiences for themselves doubled year-on-year to 12%.

Pay Later and Credit Card Rewards do Heavy Lifting

The battle between credit card issuers offering fixed installments and BNPL providers took a twist.

In general, consumers maintained their usage of credit card installments, with 31% of shoppers opting to pay that way, about the same as last year. But they shifted their use of that payment method to online purchases and away from in-store purchases. Nearly three in 10 (29%) online shoppers paid in fixed card installments when shopping online this Black Friday, up from 26% last year. Online’s gain here was brick-and-mortar’s loss: Only 34% percent of in-store shoppers used card installments to pay when shopping in-store this year, down from 40% last year.

Rewards Drive Black Friday Spending Behavior

Consumer confidence was already slipping as shoppers headed into Black Friday and the year-end shopping season. In October, the Conference Board Consumer Confidence Index slipped one point to its lowest level since April, when the Trump administration’s “Liberation Day” tariffs on most nations unfolded.

The souring sentiment prompted Black Friday shoppers, particularly cash-strapped and younger ones, to maximize their financial tools. More than one-third of struggling consumers said they would use their credit card rewards or loyalty points to cover at least some of their holiday spending. Over half of Gen Z (52%) plan on using the same strategy. Nearly as many Gen Zers (49%) choose where to shop based on where rewards deliver the most value. But not just the cash-strapped sought to maximize their rewards. Four in 10 shoppers in households with annual incomes of more than $150,000 used rewards to help pay for their purchases, the highest rate among income demographics.

This behavior shows two findings. One is that discretionary budgets are thin enough that rewards meaningfully change how much consumers can spend and where they choose to shop. The second is that higher-income shoppers, who tend to have credit cards with particularly robust benefits, actively seek to unlock that value.

Black Friday credit card purchases

Here’s where the data shows America’s K-shaped economy—of higher-income shoppers spending comfortably and lower-income ones struggling to meet their financial obligations—flashing some potentially worrisome signals. Two and a half percent of all shoppers who paid with credit cards said they would pay less than the minimum due each month. Nearly one in 10 (9%) of households making less than $50,000 a year said the same. So did 7% of Gen Z respondents. Millennials were the big spenders, but just over 3% reported they would pay less than the minimum due. While that’s below the rates for cash-strapped and younger shoppers, it’s above the average 2.5% share.

AI Use on Black Friday Gets Practical

AI isn’t just a tool for unearthing ideas—it’s also becoming a channel for sealing the deal.

Conversational AI, in the form of prompt-based AI platforms such as ChatGPT, Claude or Gemini, is becoming a mainstream shopping concierge. Half of consumers and two-thirds of Gen Z used the technology to assist with their Black Friday shopping. Consumers who live paycheck to paycheck make more use of conversational AI to find good deals, track prices and compare products than those not financially constrained. The older a shopper, the less likely they are to engage with the technology.

Artificial intelligence is supposed to make it easier (and faster) than ever to compare online prices for everything from Apple AirPods to a Dyson vacuum. Shoppers most commonly use AI assistants to find discounts and deals (42%), track prices (35%) and compare products (31%). Price and discount-related tasks stand out as the areas where consumers feel AI is especially helpful. Yet overall, shoppers are split on which tasks AI excels at—suggesting that each consumer adapts the tool to their own priorities and finds value where it best fits their shopping style.

Implications and Opportunities

Keeping the receipts

Retailing is a two-way street. Friday’s purchases may become Monday’s returns. With so much merchandise now sitting in customers’ living rooms after a weekend of both in-store and online buying, returns will be one of the most important touchpoints of the season. Many large retailers already lean on third-party logistics and returns platforms to handle the messy back end while keeping the customer-facing experience on brand. Smaller retailers often lack that scale, so they feel the cost of generous return policies more sharply.

However, they can still level up by tapping shared drop-off networks, using software that automates approvals and labels, and offering instant refunds to cards or wallets through payment partners. The opportunity is to treat returns as part of the promise rather than an afterthought. Clear, easy-to-find policies, predictable timing of refunds, and simple paths to exchange instead of refund can turn a disappointing gift into a save and keep shoppers loyal to the retailer that handled the problem with minimal friction.

Where to start? Not Black Friday

This year’s patterns show that Black Friday is no longer the start of holiday shopping. It is a peak event in a season that has already been underway for weeks. The report’s data on the rise in consumers who say they completed most of their holiday buying before Black Friday reflects how big brands have pulled promotions forward and trained shoppers to expect early online deals. Retailers should treat next year’s calendar accordingly. That means using early deals to lock in demand on core items and loyalty enrollments, then holding back some of the deepest promotions or exclusive bundles for closer to the holidays. Payment and Fintech partners can help by aligning pre-season rewards boosts, installment promotions and budgeting tools with that longer arc.

Rewards come front and center

The research shows that rewards and loyalty points played a meaningful role in how many shoppers paid for Black Friday purchases, especially Gen Z and financially stretched consumers. Retailers have an opportunity to surface available rewards balances during browsing and checkout, allow partial payment with points, and create limited-time “pay with points” events on key holiday categories. Co-branded cards and app-based loyalty programs can emphasize accelerated earn rates on essentials or on early-season shopping, helping shoppers extend a fixed budget. For merchants, this makes rewards a lever to nudge customers toward higher-margin items, encourage repeat visits and keep their brand top of wallet.

Starting with a firm budget

The research shows that budgets drive the item list rather than the other way around. That mindset should change how frontline staff and digital tools engage. In stores, associates can be trained to ask simple questions about budget and priorities, then help shoppers mix and match items, sizes and brands to reach a comfortable total, rather than pushing upgrades that risk blowing the budget. Online, chatbots and guided-selling tools can first capture a target spend range, then present “good, better, best” options or pre-built bundles that fit. Filters for “under this amount” and “best value” can be made more prominent, and cart-level nudges can focus on smarter substitutions rather than pure upsell. Retailers that respect the budget and act as advisors on how to make it go further are more likely to close the sale today and earn trust for the next one.

Big-time competition

The report confirms that Amazon and Walmart were once again the anchor destinations for many Black Friday shoppers, both online and in-store. Yet the same data set also shows that a large share of spending went to essentials and that consumers were carefully weighing price, convenience and value. That creates room for smaller retailers that cannot match national giants on scale but can win on specificity and service. Specialty merchants can lean into curated assortments, knowledgeable staff and tailored promotions that speak to local tastes or niche communities. Marketplaces, search and social platforms can be used as front doors for discovery, with clear calls to join a retailer’s own loyalty program or app, where personalized offers and service can differentiate them.

Installments continue to rise

The report highlights a notable rise in card-based installment use among shoppers who describe their finances as paycheck to paycheck, while overall use of other credit types held relatively steady. That combination points to a consumer who is cautious but not checked out of the season. Consumers want predictable payments that fit next month’s cash flow. Retailers and their payments partners can respond by positioning installments and buy now, pay later plans as budgeting tools with clear terms, not opaque credit lines. Done well, installment options can keep baskets from shrinking further without encouraging reckless spending, supporting both customer satisfaction and sustainable sales across the balance of the holiday period.

Letting AI do the walking

Consumers have a new friend this year. AI figured prominently in this year’s Black Friday results. But regardless of whether a chatbot is native to a retailer or to an AI platform, the agentic commerce shift is still a work in progress. The question for merchants is whether they are part of the prompt in a platform or whether consumers go to them first. As agents become a regular part of shopping, retailers that supply clean, current data and clear policies will be the ones most likely to be recommended when customers ask an AI where to find the best deal.

Aligning with the generations

Younger consumers skew more digital, more rewards-driven and more open to AI-assisted shopping. Older shoppers and more financially comfortable households tend to favor traditional cards, familiar channels and fewer experimental tools. Retailers should treat these differences as a design input rather than a footnote. That means creating a small set of segment playbooks that align offers, messaging, payment options and service with the needs of each group. For example, Gen Z and younger millennials may respond best to app-based loyalty, instant rewards redemption and AI-powered deal alerts, while boomers may value clear in-store signage, straightforward credit options and human service. Financially stressed customers might appreciate tools that help them plan and track holiday spend across channels.

Methodology

“Black Friday Shopping Trends Expose Shift to Budget-Driven Buying,” the 2025 edition of our annual Black Friday Report, is based on a U.S. census-balanced survey of 2,183 adult consumers conducted from Nov. 28, 2025, through Nov. 29, 2025. The report examines consumer spending patterns, preferences for online and in-store shopping, the role of payment methods like credit card installments and BNPL, and the use of AI in shaping Black Friday behavior.

^{1. PYMNTS Intelligence uses the following birth dates and approximate age ranges in 2025 for generational cohorts: baby boomers: born in 1964 or earlier and now aged 61 or older; Generation X: born between 1965 and 1980 and now aged 45–60; millennials: born between 1981 and 1996 and now aged 28–44; bridge millennials: born between 1978 and 1988 and now aged 37–47; zillennials: born between 1991 and 1999 and now aged 25–34; and Generation Z: born in 1997 or later and now aged 28 or younger.↩}