Wall Street Breakfast Stark warning on holiday spending
Sep 3, 2025
Holiday spending is projected to drop significantly, the biggest decline since the pandemic, driven by economic uncertainty. Younger shoppers are tightening their budgets, affecting major retailers. Job openings have slumped, signaling shifts in the job market. Meanwhile, Chick-fil-A is making moves to expand internationally into the UK and Singapore, aiming to broaden its footprint. The discussion highlights a mix of consumer behavior, retail performance, and economic indicators that paint a complex picture of the market.
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Holiday Spending Poised To Slide
- PwC finds U.S. holiday spending is set for its largest drop since 2020, with average spend down 5.3% to $1,552 per person.
- Consumers plan to cut discretionary categories like dining, clothing, and big-ticket items due to rising prices and tariffs.
Gen Z Retreats While Boomers Spend More
- Gift spending is falling fastest, down 11% to an average of $721, while travel and entertainment hold steady.
- Gen Z plans a 23% cut in holiday budgets, reversing last year's big increase, while boomers plan to spend more.
Macy's Raises Outlook After Better Quarter
- Macy's beat Q2 expectations and raised fiscal 2026 adjusted EPS and sales guidance, signaling progress toward profitability.
- Comparable-store sales guidance improved and the midpoint of EPS guidance topped consensus.