Holiday Spending Outlook: Consumers Expected to Spend Less This Season

Holiday Spending Forecast

• 📉 Experts predict shoppers will tighten their purse strings more this holiday season, potentially the most since the pandemic began.
• 💰 A survey of 4,000 consumers by Price Waterhouse Cooper (PWC) indicates Americans will spend an average of $1,552 per person, a 5% decrease from last year.
• ⚠️ This represents the biggest drop in holiday spending since the start of the pandemic.

Generational Spending Habits

• ⚡ Gen Z is expected to reduce their holiday spending by nearly a quarter compared to 2024, as they have grown up in an era of rising costs and are focused on cost transparency.
• 👨‍👩‍👧‍👦 Baby boomers, described as keepers of tradition, are expected to maintain their spending levels, prioritizing time with family.

Retailer Strategies and Consumer Behavior

• 🗓️ Retailers are anticipated to release holiday inventory earlier, similar to back-to-school and Halloween items, partly due to tariffs affecting shipping.
• 🛍️ Nearly 40% of holiday gift spending is projected to occur in the five-day period between Thanksgiving and Cyber Monday.
• 💸 By the end of that frenzy, approximately 80% of gift budgets are expected to be depleted.

Budgeting and Gift Preferences

• 💳 Gift cards are highlighted as a practical tool for staying on budget and avoiding the need to