Retailers Brace for More Cautious Holiday Shopping as Consumers Face Inflation, Rates
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Retailers project slower holiday sales growth this year of up to 4% due to inflation, higher interest rates, and resumed student loan payments.
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Consumer spending has remained strong this year despite high inflation and rising rates, but confidence dropped for the 3rd straight month in October.
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Income group making $25k-$35k saw the biggest drop in economic confidence last month.
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Student loan repayments resuming after 3-year pause will diminish savings of younger households.
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Retailers expect to ramp up discounts over holidays to draw cautious consumers doing more deliberate spending.
