Your Money Minute Retailers Hope You Spend 11/7/25
Nov 7, 2025
Matt Shea, a representative from the National Retail Federation, shares crucial insights on holiday spending trends. He reveals that the top 10% of households now drive over half of U.S. consumption, a notable shift since the pandemic. Shea expresses optimism about near-record consumer spending estimates for the holiday season. The conversation also uncovers how tariffs impact prices and retail margins, shedding light on who ultimately bears these costs and their effects on retailers' operations and hiring strategies.
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High Earners Drive Most Spending
- The top 10% of U.S. households now account for over half of all consumption, up from under 40% pre-pandemic.
- This concentration is driving retailers' optimism about a strong holiday season.
Retailers Expect A Healthy Holiday
- Consumer surveys show the second-highest estimates ever for holiday spending, signaling retailer confidence.
- Matt Shea links higher projected spending to an expected healthy season despite earlier concerns.
Tariffs Shift Costs, Not Eliminate Them
- Higher-income consumers worry less about tariffs and price increases, cushioning demand at the top end.
- But tariffs still impose an economy-wide cost that must show up somewhere in the system.