American consumers said they will cut spending on holiday gifts this year, and retailers that have been struggling to cope with falling demand have once again been hit. According to a Deloitte survey of more than 4,000 respondents, consumers' willingness to buy gifts is 3% lower than a year ago. However, shoppers said total spending will increase by 8% between October and December, and spending on experience, decoration and entertainment will be the main driver of growth. This indicates that retailers need to offer more promotions and discounts to attract shoppers who are still expected to see higher prices this Christmas. The report is similar to recent data from PwC, which argues that high prices erode consumers' brand loyalty. Brian McCarthy, head of consulting at Deloitte, said: “As consumers become more inclined to experience and continue to find value, there is an opportunity for retailers to attract shoppers and better connect with customers by focusing on loyalty programs and providing unique incentives.” The survey also showed that Americans are turning to retailers and brands that are considered more affordable. These results echo Deloitte's findings on the back-to-school shopping period.

American consumers said they will cut spending on holiday gifts this year, and retailers that have been struggling to cope with falling demand have once again been hit. According to a Deloitte survey of more than 4,000 respondents, consumers' willingness to buy gifts is 3% lower than a year ago. However, shoppers said total spending will increase by 8% between October and December, and spending on experience, decoration and entertainment will be the main driver of growth. This indicates that retailers need to offer more promotions and discounts to attract shoppers who are still expected to see higher prices this Christmas. The report is similar to recent data from PwC, which argues that high prices erode consumers' brand loyalty. Brian McCarthy, head of consulting at Deloitte, said: “As consumers become more inclined to experience and continue to find value, there is an opportunity for retailers to attract shoppers and better connect with customers by focusing on loyalty programs and providing unique incentives.” The survey also showed that Americans are turning to retailers and brands that are considered more affordable. These results echo Deloitte's findings on the back-to-school shopping period.