Holiday shoppers are gearing up to spend less this upcoming season, with a survey by PwC showing a 5% drop in planned holiday spending compared to the year before. The biggest decline in spending comes from Generation Z, who plan to spend an average of 23% less than last year.

This shift in spending habits reflects Gen Z’s focus on value and cost transparency, as they prioritize experiences over material possessions. Retailers are tasked with understanding and adapting to the changing preferences of this generation, who are quick to adopt and abandon trends. As uncertainties around price sensitivity and higher tariffs loom, shoppers are paying closer attention to prices and looking for the best deals to stretch their budgets.