Shoppers Embrace ‘Christmas in July’ Amid Rising Costs and Tariff Limbo

Tucked deep inside Catherine Spruill’s bedroom closet sit two plastic bins beneath a mountain of clothes. One holds emergency gift cards. The other Christmas presents.

She has been stockpiling gifts for the December holidays since June, hunting for summer sales across big-box retailers in her hometown, Stratford, Conn., stretching her income across two children, extended family and a long list of friends.

Ms. Spruill, 34, has already picked up more than 25 toys and video games for around $350. Her best find so far: matching holiday pajama sets for herself and two sons, ages 13 and 3 — all for $28, thanks to a 50-percent-off sale at Kohl’s.

Black Friday no longer marks the beginning of the holiday retail season, as a growing number of shoppers and retailers are embracing what’s being called “Christmas in July.”

“These are the best weeks to do Christmas shopping because you’re going to get more bang for your buck,” said Ms. Spruill, who is a home health aide. “Stores are trying to get rid of stuff to the point they’re handing it to you.”

Ms. Spruill has been doing her holiday shopping months in advance since 2020, when she watched a coupon clipper on YouTube rave about using July clearance sales for holiday shopping. That same summer, she scored a bicycle on sale for $48 at Walmart, marked down from around $120. Over the past five years, Ms. Spruill said, she has saved thousands using this strategy.

Rising costs, inflation and uncertainty around tariffs are pushing shoppers, particularly parents, to take early holiday shopping more seriously. Some 21 percent of 1,062 people surveyed by CivicScience, a Pittsburgh-based research firm, said they had already started holiday shopping this summer, up from 16 percent a year ago.

Early holiday shopping isn’t entirely new. Retailers have long nudged customers toward early-bird deals for the holiday season. But the Covid-19 pandemic helped push the timeline up even earlier because of supply chain issues and concerns over not getting gifts on time, said Ted Rossman, a senior industry analyst for Bankrate.

Despite ongoing uncertainty around tariffs, consumer anxiety is starting to ease. After a brief dip in May, retail sales rose 0.6 percent in June, with year-over-year gains in big-ticket items like furniture and cars, according to the Census Bureau.

“Consumers are climbing the wall of worry and spending anyway,” Mr. Rossman said.

Retailers are responding to the shift in consumer activity with extended sales and deeper discounts. Amazon’s Prime Day sale, which debuted in 2015 as a 24-hour event, lasted four days this year. Walmart and Target now run events around the same time to capture shopper attention, turning July into a broader summer sales period.

Amazon reported record Prime Day sales in a news release but did not disclose exact figures.

Macy’s ran a “Black Friday in July” sales event for five days starting on July 23. It also marketed a “Christmas in July” sale on July 25 for the first time, offering holiday and general merchandise, according to a news release.

A spokesman for TJX, owner of T.J. Maxx and Marshalls, said in an email that the company was aware that some of its customers would get a head start on their holiday shopping as early as July, but did not offer specifics on sales or traffic. Kohl’s declined to comment. Target did not respond to requests for comment.

Small businesses are also jumping on the trend. In Mobile, Ala., JulieAnna Lindsey organized her second annual “Christmas in July” small-business event with more than 40 local vendors and boutique retailers selling items ranging from Christmas tree ornaments to gingerbread earrings.

More than 250 people attended the one-day event at a church during the state’s tax-free weekend this month.

For some consumers, “Christmas in July” is not just about saving money. It’s also about saving time and avoiding the holiday rush for popular items.

Alicia Thomas, 32, was in search of a Paw Patrol aircraft carrier toy during the 2023 holiday season. Though Target’s website listed it in stock in multiple stores, she said, she came up empty-handed at nearly every one she checked.

She found the toy in the end but said all the stress and time she had spent driving around were unnecessary. After attending Ms. Lindsey’s Christmas in July event last summer in Mobile, Ms. Thomas said, she decided to get a head start on holiday shopping for her three boys, ages 7, 5 and 2. For this summer’s event, she bought two outfits at a children’s boutique for around $30.

She bought several gifts, including a grill set and a holiday advent calendar, saving nearly $190 through discounts. The store was slashing prices to compete with a Walmart that had opened nearby, Ms. Cannon said. It was a steal for her.

“I’ve never seen prices like that before,” Ms. Cannon said. “That was kind of crazy.”

Lily Hartog, 23, of Peoria, Ariz., who has an 18-month-old child and another on the way, said she tried to avoid the stress of shopping during the holiday rush of Black Friday. Last year, she came across Target’s July Circle Week sale and decided to get a head start on gifts. Ms. Hartog got around nine items, such as books and toys, for under $55.

She said she planned to do the same this year.

“I feel like now that I have started shopping in the summer, it’s going to be a staple for me,” Ms. Hartog said. “If I have to, then I’ll have to shop Black Friday, not that I’ll be happy about it.”