The peak U.S. holiday shopping season is approaching, and according to data from Deloitte, shoppers plan to clutch their wallets tighter than they did last year, with consumers planning to spend 10% less than the $1,778 they intended to spend in 2024.
It's not a coincidence that 77% of people surveyed also anticipate higher prices on holiday items.
University of San Diego Economics Professor Alan Gin Ph.D. attributes the current consumer sentiment about needing to cut back to concerns about the economy, inflation, rising prices, and job market weakness. Specifically, the Deloitte survey found that people plan to spend 4% less on Black Friday and Cyber Monday than they did last year.
“I think people are going to be more careful this time around. When people are stressed economically, they are a little bit more careful with their money and so I think they're going to be a little bit more discerning than in terms of the things that they buy and the people they shop for,” Gin told NBC.
Overall, the survey found Gen Z and millennial shoppers plan to keep their spending flat, while Gen X and baby boomers plan to reduce spending by 9% and 12% respectively, compared to 2024 levels.
And shoppers in every generation are hungry for deals: 38% say they plan to only purchase items that are at least 50% off.