Holiday spending in the US is projected to decrease by 5%, largely due to a 23% reduction by Gen Z. This shift reflects economic uncertainty and rising inflation. Gen Z, facing job insecurity and new financial responsibilities, are prioritizing experiences over material gifts, opting for budget-friendly retailers. Millennials and Gen X are maintaining similar spending levels, while Baby Boomers plan a 5% increase. This trend benefits discount retailers, while higher-end stores struggle. Consumers are becoming more strategic, focusing on value and planning ahead to manage their budgets.

Prepared by Christopher Adams and reviewed by editorial team.