With the holiday rush nearing, a panel on “Mornings with Maria” warned that shoppers are trimming lists and tightening budgets. The discussion signaled a cautious season as households juggle higher prices, steep borrowing costs, and thinning savings. Retailers face a tricky mix: demand is still there, but it looks more selective and delayed.
The conversation centered on what consumers will buy, when they will buy it, and how retailers will adjust. The takeaway was clear. Shoppers plan to spend, yet many plan to spend less and later.
Why Wallets Feel Thinner
Inflation has cooled from its peak, but price levels remain high compared with a few years ago. Groceries, household goods, and services continue to strain budgets. Interest rates add another squeeze. Credit cards now carry higher rates, and balances have risen in recent quarters. That makes impulse buys more expensive and debt less forgiving.
Savings built up earlier in the pandemic have faded for many households. Some consumers are prioritizing essentials, rent, and car payments before gifts. Others are delaying purchases to hunt for steep discounts. The result is a more cautious season, with value and timing in the spotlight.
“Consumers are preparing for holiday shopping, but some are starting to cut back on spending,” one panelist said. “They want deals, and they’re waiting for them.”
Retailers Bet On Discounts And Timing
Retailers are likely to respond with earlier and longer promotions. Expect a drumbeat of “limited-time” offers spread from mid-November through late December. That cadence aims to pull in bargain hunters who are now trained to wait for a better price. It also helps stores manage inventory and avoid a January glut.
Buy now, pay later services could see heavy use. They offer a way to break up payments without credit card interest, though late fees can still sting. Curated bundles, doorbusters on big-name electronics, and loyalty-member specials will headline many campaigns.
“The consumer is price sensitive and promotion driven,” another panelist said. “Retailers will need sharper discounts to move the needle.”
What Shoppers Say They Will Do
Households are signaling new habits—many plan to cap per-person totals, swap experiences for pricy items, or focus on practical gifts. Gift cards remain attractive because they avoid guesswork and let recipients pursue future sales.
- Set strict budgets and track receipts in real time.
- Buy fewer, higher-value gifts instead of many small ones.
- Time purchases for price drops on key shopping days.
Shipping and returns will also shape choices. Free returns could be a deciding factor, especially for apparel. Retailers that charge for returns may lose price-sensitive shoppers to rivals that do not.
The Split-Screen Economy
The panel noted a growing divide. Higher-income households still have room to spend on travel, dining, and premium gifts. Mid- and lower-income shoppers face more challenging trade-offs. That mix points to uneven performance across categories and chains.
Groceries, beauty, and low-cost toys may outperform as “stocking stuffer” staples. Big-ticket electronics and furniture could lag unless discounts deepen. Apparel remains a wild card, dependent on style hits and return-friendly policies.
“We expect more last-minute buying,” a contributor said. “If the deal is not good enough, shoppers will walk.”
Signals To Watch Through December
Several indicators will reveal the season’s strength. Foot traffic and online conversions around major sale weekends will show whether shoppers are buying or just browsing. Retailers’ inventory commentary will hint at how aggressive markdowns may get. Credit and debit spending data will point to whether households are leaning on debt or paying cash.
If promotions are heavier and start earlier, margins could be thin even if sales volumes hold. A soft finish would raise pressure on January clearance events. A stronger-than-feared run would suggest shoppers were waiting for price triggers rather than abandoning the season.
For now, the message is restrained with a plan. Consumers want to celebrate, but they want a deal more than anything. Retailers will chase them with discounts, perks, and flexible payments. The winners will make value feel festive without training shoppers to wait forever.
The coming weeks will test that balance. Watch the depth of markdowns, the pace of last-minute buys, and how much debt households are willing to take on. Those signals will define not just this holiday season, but the playbook for the next one.
