Meet&CoA new KPMG survey reveals that U.S. consumers anticipate spending more this holiday season — but the reason isn’t increased shopping enthusiasm. Instead, most expect their higher bills to stem from inflation and tariffs rather than from buying more goods.
According to KPMG, 80% of respondents believe tariffs will raise prices this year. This perception aligns with a Furniture Today poll, which found that 77% of shoppers are aware of how tariffs could inflate furniture prices. Notably, 30% said they plan to delay furniture purchases until they better understand the cost impact.
While categories like apparel (+3%) and personal care (+2%) are projected to see modest spending increases, furniture spending is expected to fall by 12%. Other discretionary sectors such as toys (-15%) and hobby supplies (-9%), are also facing declines.
One possible reason: consumers may be directing their discretionary dollars toward travel. Despite earlier reports suggesting cutbacks on vacations, KPMG’s data shows that travel spending is expected to jump 10% year over year. Americans, on average, plan to spend about $1,127 on travel this season, with a growing number opting for trips costing $1,000 or more.
This trend suggests a shift back to larger, experience-based purchases — potentially at the expense of big-ticket home items like furniture.
The survey also highlights another major change in consumer behavior: the rise of artificial intelligence in the shopping process. KPMG found that 41% of consumers now use AI tools to research products. Among younger generations, the numbers are even higher — 56% of Gen Z and 62% of Millennials rely on AI for shopping insights.
“AI shopping assistants are redefining personalized retail experiences,” said Julia Wilson, principal at KPMG U.S. “From tailored recommendations to instant style advice and virtual try-ons, AI is providing a level of engagement that was once unimaginable.”
For furniture retailers, this evolving landscape poses challenges. The combination of advanced digital tools, fragmented shopping platforms, and the dominance of e-commerce giants like Amazon — where nearly 70% of shoppers make purchases after seeing items — makes it increasingly difficult to capture buyer attention.
Although the complexity of retail continues to expand, KPMG’s findings suggest that meaningful growth for the furniture industry may have to wait until the next cycle.
