Inflation, economic uncertainty, and rising everyday costs are casting a long shadow over the spooky season this year. According to a recent LendingTrust survey, nearly two-thirds of shoppers across the United States are planning to skip certain holiday purchases altogether. The cutbacks are not just affecting luxury items or novelty goods; they extend directly into traditional staples of the season, including holiday candy, decorative items, and even children’s costumes.
As households grapple with tightening budgets, retailers are seeing a fundamental shift in consumer behavior. About a third of Halloween shoppers report that they are actively cutting back on seasonal decorations this year. This pullback highlights a broader trend of cautious consumer spending that has steadily expanded from major milestone holidays into smaller seasonal celebrations. Retail analysts note that shoppers are increasingly prioritizing essential household needs over festive luxuries, forcing families to make difficult choices about how they allocate their disposable income amid ongoing economic pressures.
Generational Divides in Holiday Debt and Spending
Though many consumers are spooked about affording their Halloween purchases, some consumers are significantly more financially strained than others, creating a stark generational divide in holiday financing. Roughly four in 10, or 43%, of Gen Z respondents stated that they are likely to take on debt specifically to fund their Halloween celebrations this year. They are closely followed by millennials, 35% of whom expect to rely on credit cards or other forms of borrowing to cover seasonal expenses.
By contrast, older generations are showing far more financial restraint or possess greater liquid resources. Only 14% of Gen Xers and a mere 2% of baby boomers indicated that they would take on debt for the holiday, according to the survey findings. This generational gap underscores differing financial vulnerabilities, as younger consumers often face higher relative housing costs, entry-level salaries, and existing student loan burdens, leaving them more susceptible to the pressures of seasonal overspending.
Among the cohort of shoppers who have historically taken on debt to fund their Halloween fun, 51% admitted that they ultimately regret overspending. When asked why they exceeded their budgets, these respondents frequently cited two primary factors: intense social pressure to keep up appearances—often fueled by social media trends—and much higher-than-anticipated retail prices across the board.
Inflation Drives Up Prices on Holiday Staples and Toys
The regret expressed by overextended shoppers aligns closely with broader macroeconomic data showing persistent price increases leading up to the holiday season. The financial squeeze is particularly evident in categories like children’s toys and seasonal entertainment goods. According to figures from the U.S. Bureau of Labor Statistics’ Consumer Price Index, toy prices alone jumped 4.2% between August and September. When compared to the same period a year ago, toy prices surged by an unadjusted 6.6%, placing an additional burden on parents trying to maintain holiday traditions for their children.
These rising costs have forced many holiday shoppers to fundamentally alter their purchasing habits, with a significant portion taking advantage of early-season discounts and promotional sales to stretch their available budgets. Retail data from an Ibotta survey reveals that nearly half, or 45%, of respondents currently feel that their personal finances are insecure. Furthermore, over 70% of those surveyed emphasized that their primary financial focus this year is aggressive saving rather than discretionary spending.
Economic Pessimism and the Shift Toward Discount Retailers
Broader economic anxiety continues to weigh heavily on consumer sentiment as the holiday season approaches. While seven in 10 shoppers report that they can comfortably afford their current Halloween purchases, roughly four in 10, or 42%, anticipate that the broader U.S. economy will deteriorate over the coming year. This outlook is drawn from a comprehensive Deloitte survey of 1,500 U.S. shoppers, which also shed light on where consumers are choosing to spend their limited holiday dollars.
To manage their expenses effectively, shoppers are increasingly turning away from traditional specialty stores and toward more budget-friendly retail environments. The Deloitte survey found that more than half of all shoppers are purchasing their Halloween items at traditional grocery stores, while 40% are deliberately choosing discount stores to secure better value for the holiday.
This consumer migration toward value-oriented retail is further corroborated by separate findings from the National Retail Federation. Their recent research indicated that nearly four in 10 consumers, or 39%, specifically cited discount stores as their absolute top destination for purchasing Halloween products this year. As retailers navigate this shifting landscape, the focus remains heavily centered on affordability, discounts, and value propositions designed to capture cautious consumers who are determined to celebrate without breaking the bank.