Survey Reveals 10% Drop in Holiday Spending at Amazon, Walmart, Costco

A recent survey conducted by Deloitte highlights a concerning trend among American shoppers as the holiday season approaches. The survey reveals a notable 10% decrease in anticipated holiday spending, signaling a financial strain among consumers.

Consumer Sentiment and Economic Outlook

The survey, which included 4,000 respondents, indicates that 57% of Americans foresee a weakening economy in 2026. This marks a significant increase from the 30% who expressed similar concerns prior to the 2024 holiday season. The 2023 outlook represents the most pessimistic sentiment recorded since the survey’s inception in 1997.

Higher Prices Expected

As inflation continues to impact the U.S. economy, 77% of participants anticipate increased prices on holiday items this year. This figure has risen from 69% in 2024, underscoring growing concerns over affordability during the festive period.

Projected Spending Decrease

Consumers expect to spend an average of $1,595 on holiday shopping, which is down 10% from the previous year. This projected reduction in spending spans across various household income levels and generations, with younger consumers particularly impacted.

• Gen Z (ages 18-28): anticipate spending 34% less.
• Millennials (ages 29-44): expect to reduce their spending by 13%.

Implications for Major Retailers

This drop in consumer spending poses challenges for significant retailers like Amazon, Walmart, and Costco, who typically rely on increased sales during the holiday season to drive profits. With such a bleak forecast, these retailers may need to adjust their strategies to attract cautious shoppers this year.

Conclusion

The survey’s findings reflect a broader economic unease that could shape the holiday shopping landscape in 2023. As inflation and economic forecasts weigh heavily on consumer minds, retailers may face tough competition for a shrinking pool of disposable income during the holidays.