Americans are expected to spend nearly $900 each this holiday season, the second-highest level in 20 years.
The surge reflects strong consumer demand and a continued shift towards online shopping.
However, many shoppers say they are worried about the economy and rising living costs.
Prices have been pushed higher by inflation nearing 3 per cent and tariff-driven cost increases.
Affordability has become a major political issue, fuelling fears of economic slowdown or recession.
President Donald Trump rejects the concerns, claiming strong economic growth under his administration.
With midterm elections approaching, voters remain divided between festive spending and economic anxiety.
Al Jazeera’s Mike Hanna reports from Washington, DC.
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