Shoppers in Los Angeles are turning to more affordable brands, seeking deals and making their own presents to save money this holiday season, as many tighten their purse strings in anticipation of a weak economy.

The average projected holiday spend by Los Angeles shoppers was $1,627, according to Deloitte's 2025 holiday retail survey. That's above the national average but a 14% dip from 2024.

"What we're hearing is that shoppers here in the L.A. metro area — and nationwide — are feeling uncertain about where the economy is headed," said Rebecca Lohrey, Deloitte audit and assurance partner.

Californians have struggled more than residents of most other states with the stubbornly high price of housing. At the same time, the often-changing tariff regime coming out of Washington has consumers concerned that prices will continue to rise.

Widespread and high-profile job cuts in the tech industry, which has for decades been one of the state's most reliable employers, have also helped shake consumer confidence. Some consumers surveyed by KPMG earlier in the year had planned to spend more this holiday season, in part, to get ahead of inflation.

Three-quarters of the shoppers surveyed expect higher prices on holiday goods, and 62% of Los Angeles shoppers expect the economy to weaken in the year ahead, nearly twice as many as a year earlier.

"L.A. shoppers are more likely to hunt for deals, give homemade gifts, reuse wrapping and use tools like social media and AI to plan their purchases," Lohrey said. "Even with tighter budgets, they're finding smart, creative ways to make the season joyful without overspending."

Tariffs, inflation and geopolitical shifts are causing severe economic uncertainty for consumers.

Nationally, 57% of those surveyed expected the U.S. economy to weaken in the next six months, the most negative outlook since Deloitte started tracking economic sentiment in 1997.

This echoes what big box retailers and consumer goods giants have been saying. In August, Walmart said that as it replenishes inventory at tariff prices, it has continued to see costs increase each week, which it expects to continue through the end of the year. PepsiCo said it was introducing products at a cheaper price as consumer budgets remain constrained.

"Not surprisingly, we see more adjustments in middle- and lower-income households than we do with higher-income households," Douglas McMillon, Walmart's chief executive, said in an earnings call.

With consumers becoming more value-conscious, the Deloitte survey found that 88% of L.A. shoppers are seeking deals, and 78% are opting for affordable brands and retailers.

This has also meant that about 35% of L.A. shoppers plan on turning to generative AI tools to compare and find the best deals and generate shopping lists.

Consumer price inflation in Los Angeles stood at 3.5% in September compared with the previous year, higher than the national average of 3%, according to the Bureau of Labor Statistics.

With price increases, 6 in 10 local shoppers are turning to gift cards instead of gifts this holiday season, willing to spend an average of $268 on the cards.

Clothing and accessories are the top categories for those L.A. shoppers who say they'll self-gift this year.

©2025 Los Angeles Times. Visit at latimes.com. Distributed by Tribune Content Agency, LLC.