Retailers Brace for More Cautious Holiday Shopping as Consumers Face Inflation, Rates

Retailers project slower holiday sales growth this year of up to 4% due to inflation, higher interest rates, and resumed student loan payments.

Consumer spending has remained strong this year despite high inflation and rising rates, but confidence dropped for the 3rd straight month in October.

Income group making $25k-$35k saw the biggest drop in economic confidence last month.

Student loan repayments resuming after 3-year pause will diminish savings of younger households.

Retailers expect to ramp up discounts over holidays to draw cautious consumers doing more deliberate spending.