Marketplace Morning Report Expect a spendy but price-conscious holiday season
Oct 16, 2025
Holiday shopping is gearing up, with spending expected to rise mostly due to higher prices. Cautious consumers may only boost sales by 2.5%, focusing on value-driven options. Retailers are responding by offering entry-level pricing and personalized deals to attract budget-conscious shoppers. Meanwhile, the Community Development Financial Institutions Fund supports underserved lenders, highlighting the challenges they face amidst political changes. There's bipartisan support for this fund, emphasizing its critical role in helping local businesses thrive.
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Spendy But Not More Gifts
- Holiday sales growth is expected to be modest, around 2.5 percent, driven mainly by higher prices rather than more items sold.
- Gregory Dacko and Carla Javier highlight that consumers will likely buy fewer gifts but spend more per purchase due to inflation.
Volume Could Surprise Optimists
- Some analysts, like Arun Sundaram, are more optimistic about unit sales based on a strong back-to-season performance.
- Retailers' adjustments to pricing and assortment could still yield a decent holiday season even if it falls short of great.
Prioritize Value Pricing And Personalization
- Retailers should lean into entry-level pricing and affordable store brands to attract value-focused shoppers.
- Use loyalty data and AI to deliver personalized deals that protect margins while appearing competitive.