Best Buy, like many other retailers in the U.S., is anticipating an increase in sales during the holiday season this year, after facing concerning customer behavior over the past few months.

During the second quarter of this year, Best Buy saw its comparable sales increase by 1.6% year-over-year, as more consumers purchased products in categories such as gaming, computing, mobile phones, wearables and headphones, according to its latest earnings report.

However, according to recent data from Placer.ai, foot traffic in Best Buy’s same-store locations dropped by 1.2% year-over-year during the quarter.

During an earnings call in August, Best Buy CEO Corie Barry said that customers “continue to be thoughtful about big-ticket purchases” and are becoming “deal-focused and attracted to more predictable sales moments” amid economic pressures and challenges in the U.S. housing market.

Despite consumers being more cautious about their spending, many are still prioritizing holiday shopping this year, but with a focus on obtaining deals.

Best Buy has been battling weak consumer demand in 2025.

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How U.S. consumers plan to shop during holidays in 2025: 

  • Consumers plan to spend $890.49 per person on average this year on holiday gifts, food, decorations and other seasonal items.
  • Approximately 85% of consumers expect to pay higher prices due to tariffs. 
  • Also, 55% plan to make holiday purchases digitally, while 22% are expected to gift electronics.
  • Additionally, 63% of consumers plan to wait until Thanksgiving weekend to do most of their holiday shopping, up from 59% last year.
    Source: National Retail Federation

“Time and again, Americans prioritize spending on loved ones for holidays despite economic uncertainty,” said Katherine Cullen, NRF vice president of industry and consumer insights, in a press release. “With more consumers planning to seek out sale events this year, retailers are prepared to deliver on deals and value to ensure consumers have everything they need to make the holiday special.”

Best Buy updates return policy for the holidays 

As the holiday season looms, Best Buy has made its return policy more convenient in an effort to attract customers.

The electronics retailer is now giving customers who made purchases between Oct. 31 and Dec. 31 until Jan. 15, 2026, to return items. However, this extension excludes activatable devices (cell phones, tablets, cellular wearables, etc.), AppleCare+ plans and holiday decorations. 

Related: Marshalls makes bold change to return policy ahead of holidays

My Best Buy Plus and My Best Buy Total members have an even longer window to return items during the holiday season. Members have until January 31, 2026, to return items purchased between Oct. 31 and Dec. 3. For purchases made on or after Dec. 4, members have a 60-day return window. 

For all customers who want to return activatable devices, they have 14 days after the purchase date to do so. It is also important to note that customers will be charged a $45 restocking fee when returning activatable devices (excluding prepaid phones). 

Some items, such as drones, digital cameras, camera lenses, premium scooters, special order products, etc., also have a restocking fee; however, it is 15% of the item’s purchase price.

Also, if customers plan to return holiday decorations, Best Buy allows them to do so within 15 days after the purchase date. 

Best Buy’s return policy change appeals to shifting consumer behavior

Best Buy’s decision to update its return policy for the holidays mirrors other retailers such as Target, Marshalls, Walmart and Amazon, which have all also extended their return windows into 2026 due to the holiday season. 

More Retail:

  • Marshalls makes bold change to return policy ahead of holidays
  • Walmart quietly shrinks generous offer for holiday shoppers
  • BJ’s Wholesale announces free offer for customers amid struggles

A recent survey from the National Retail Federation found that consumers nationwide are expected to return almost $850 billion in merchandise in 2025, and 71% are less likely to shop with a retailer again after a poor experience with returning items, up from 67% in 2024.

As returns become a bigger part of holiday shopping, retailers are planning to change how they handle returns from customers. 

How retailers plan to handle returns during the 2025 holiday season:

  • Approximately 52% of retailers expect sales this year to be driven by higher prices, rather than volume, leaving margins vulnerable to return costs.
  • Also, 65% of retailers are taking measures to monitor/prohibit excessive return patterns this holiday season, which include implementing restocking fees, limiting free shipping for loyalty members, adding return shipping fees, etc. 
  • Additionally, 75% of retailers say fraud worsens during the holidays.
  • About 27% plan to extend return windows during the holidays this year.
    Source: ReturnPro

“The holiday season is always a test for retailers, but this year the stakes are higher because of tighter inventory, rising fraud risks, and growing consumer expectations for instant, frictionless returns,” said ReturnPro CEO Sender Shamiss in a press release. “Companies that view returns not just as a cost center, but as a lever for recovery, customer loyalty, and operational discipline will be the ones positioned for success during the 2025 holiday season.”

Related: Amazon, Walmart, and Target make holiday return policy changes