How to Sell on Temu UK: A 2025 Market-Entry Guide
Reading Time: 8 minutesEvery sale you make online in the UK comes with a cut.…
For the first time since 2020, U.S. consumers are planning to cut back on holiday spending, with average expenditures expected to decline 5% compared to last year, according to PwC’s 2025 Holiday Outlook Survey released Tuesday. The report, based on responses from 4,000 consumers surveyed between June 26 and July 9, highlights a growing sense of frugality—especially among Gen Z shoppers, who plan to slash their holiday budgets by 23%.
The report found that 84% of consumers expect to reduce overall spending in the next six months, citing economic uncertainty, tariffs, and cost-of-living pressures. Despite the pullback, Americans are still planning to spend significantly on holiday gifts, travel, and food:
Gen Z’s retrenchment is especially stark compared to 2024, when the age group projected a 37% increase in holiday spending.
“Gen Z is coming of age financially. They’re taking on mortgages, raising families, and learning how to stretch their dollar,” said Ali Furman, PwC Consumer Markets Industry Leader.
PwC’s survey also points to deeper dynamics shaping their behavior:
PwC predicts consumers will start shopping earlier, completing 80% of their purchases by Cyber Monday. Gift categories expected to perform well include:
Channel parity is another key shift. This holiday season, consumers are almost evenly split: 51% plan to shop online—largely through marketplaces like Amazon, eBay, and Etsy—while 53% will shop in person.
Technology is also shaping decisions: about 15% of Gen Z and millennials say they will use AI tools to generate gift ideas.
The projected pullback doesn’t spell doom for retailers—but it does mean they will need to fight harder for share of wallet. PwC’s findings, along with retail analysts’ insights, suggest several strategies:
Double Down on Value Messaging:
Accelerate Trend-to-Shelf Speed:
While overall spending is expected to soften, PwC’s survey underscores that the 2025 holiday season will still see robust consumer activity, just with a sharper focus on value and practicality.
“Retailers who strike the right balance between price, personalization, and experience will be best positioned to win this holiday season,” Furman concluded.
For retailers, the challenge is not only capturing spend but also adapting to Gen Z’s evolving expectations—fast fashion of ideas, value-conscious wallets, and a desire for experiences over possessions.
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