A recent survey by PWC indicates that holiday spending in the U.S. is expected to decline by 5% this year, reflecting economic uncertainty and changing consumer behavior. Households are prioritizing value and rethinking their budgets, particularly among Gen Z, who plan to spend less compared to previous years. Economic factors like inflation and employment instability are affecting younger generations, leading them to shop at discount retailers and be more mindful of expenditures.
While most generations plan to maintain their holiday budgets, baby boomers anticipate a 5% increase. Gen Z, however, is focusing more on experiences, often foregoing luxury goods due to tighter financial constraints. Many are drawn to affordable alternatives and budget-friendly retailers like Dollar General and Walmart, which have seen positive revenue growth.
The pressure to manage finances will likely intensify, with some consumers expressing frustration over rising prices. As a result, shoppers are planning to spend with intention, seek deals, and possibly switch brands.
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