Holiday shoppers are expected to cut back on spending this season, with a 5% drop in planned expenses compared to last year. Generation Z plans to spend 23% less, the biggest decrease among all generations. Rising costs and a focus on value are driving their shopping habits, impacting overall holiday spending trends. Retailers face challenges in appealing to this generation, known for quick trend adoption and experience-driven purchases.

Other generations’ holiday spending expectations remain flat, except for baby boomers who plan to spend 5% more. Consumers are wary of potential price increases due to higher tariffs, prompting them to closely monitor prices and shop strategically for the best deals. Retailers face uncertainty this holiday season as they navigate price sensitivity and absorb higher tariff costs.

Read more at CNBC: Holiday spending, especially by Gen Z, will drop, survey says