Nearly Half of Shoppers Fear They Can't Afford Holiday Gifts

Nearly half of shoppers are worried about affording holiday gifts this year, according to a new ICSC report. The finding signals a spending season in which household anxiety, not enthusiasm, sets the pace for retailers.

The report ties that worry to two pressures: concerns about the job market, and personal and household debt. Together, these factors are affecting how much consumers plan to spend this season, ICSC found.

What is driving the caution?

The ICSC data places employment insecurity at the center of the holiday outlook. Shoppers who question the stability of their income are less inclined to commit to gift budgets they may not be able to sustain.

Debt adds a second constraint. Consumers carrying personal and household debt are balancing holiday purchases against existing financial obligations, and the report indicates that balance is directly shaping their spending plans.

Why it matters for marketers

For retailers and brands, the ICSC findings point to a shopper who is still engaged with the season but financially guarded. The report does not describe consumers abandoning holiday purchases; it describes them recalibrating how much they can spend.

That distinction matters for planning. A customer worried about affording gifts responds differently to promotion, price messaging and payment flexibility than one spending freely. The ICSC findings suggest value positioning and clear price communication will carry more weight this season than in more confident years.

Shopping centers and their tenants, the core constituency ICSC serves, face the practical consequence: traffic may hold up while baskets shrink, and the mix of what shoppers buy may shift toward lower-ticket items.

What should retailers watch?

The report's framing — job-market concern plus debt pressure suppressing spend — gives marketers two variables to monitor through the season. Any deterioration in employment sentiment or consumer credit conditions would likely deepen the caution ICSC documented.

Conversely, retailers that acknowledge the affordability worry directly, through pricing, promotions and assortment, are better positioned to capture the spending that does occur. With nearly half of shoppers already flagging the issue before the peak weeks, the affordability message is not a niche play this year; it is the mainstream shopper mindset retailers need to address.