Deloitte Thinks the Holidays Will Be Merry, PwC Isn’t So Sure
In its holiday report, PwC said the season will be more like jazz—improvisational and less predictable—than an easy-to-follow melody.

Earlier this month, PricewaterhouseCoopers (PwC) released its 2025 Holiday Outlook Survey.
Conducted over the summer, the survey showed that consumers expect their seasonal spending to decline on average by 5 percent when compared with 2024, the first notable drop since 2020, PwC said.
Average gift spend is anticipated to drop 11 percent.
PwC’s forecast seems less merry than the prediction Deloitte recently released, with PwC stating that retail is facing a “reality check, with cost concerns front and center.”
According to the survey, the drop in holiday spending is expected to be concentrated among the youngest consumers, members of Generation Z (ages 17-27).
Facing a tougher job market and inflation, and with limited savings given that they are early in their careers, Gen Z survey-takers said they plan to cut their holiday budgets (including gifts, travel, and entertainment) by 23 percent, from $1,752 last year to $1,357 this year.
When they do buy, a majority of Gen Z survey-takers (63 percent) said they will opt for resale and upcycled products, while one in three said they’re cutting consumption to reduce environmental impact.
“Consumers are approaching holiday purchases more deliberately, deciding what matters most, where to scale back, and what feels worth the splurge.” — PwC
Meanwhile, holiday budgets for millennials (ages 28-43) surveyed are expected to decline slightly ($2,222 in 2024 vs. $2,190 in 2025).
Gen X consumers (ages 44-59) are expected to spend a little more ($1,454 in 2024 vs. $1,483 in 2025), as are baby boomers (ages 60-78), $1,126 in 2024 vs. $1,180 in 2025.
PwC said for retailers, it won’t be just about offering deals this holiday season.
While consumers are worried about rising costs, they’re also searching for a sense of normalcy, products that feel like a good value to them, and brands that “get” them.
“Consumers are approaching holiday purchases more deliberately, deciding what matters most, where to scale back, and what feels worth the splurge,” PwC said.
“Brands that recognize these nuances, and meet shoppers where they are, have an opportunity to build loyalty that lasts beyond December.”
In its summary of the survey results, published Sept. 3, PwC noted its findings reflect consumer sentiment as it stood in June, a figurative lifetime ago in the current economic environment.
“Economic signals continue to shift and, between now and December, purchasing behavior could evolve in response,” PwC said.
It’s also worth noting that while jewelry has proven resilient to broader economic headwinds so far, the full effects of the tariffs have yet to be felt.
In a recent post on LinkedIn, Sherry Smith, director of business development at Edge Retail Academy, said independent jewelers delivered a “modest” 1 percent increase in gross sales in August, with average retail sale increasing but number of units sold decreasing.
Tariffs continue to impact consumer confidence, creating uncertainty about how the holiday season will play out.
In her post, Smith advised retailers to plan cautiously, be disciplined with their finances, optimize their inventory, and remain agile.
“Despite uncertainty, one truth remains—independent jewelers are resilient,” she wrote.
“With focus, strategy, and adaptability, you can finish 2025 strong. We’ve weathered challenges before, and with discipline and creativity, we’ll do it again.”
Conducted online between June 26 and July 9, PwC’s holiday survey consisted of 4,000 U.S. consumers who are representative of the country’s population across gender, region or state, and generation, PwC said.
There were 1,000 respondents each from the baby boomer, Gen X, millennial, and Gen Z demographic groups.
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