Shoppers plan to scale back spending this Black Friday

Americans are stepping into the holiday shopping rush with mixed feelings this year. The excitement of Black Friday deals is still there, but many people are more cautious about their spending. 

According to new Deloitte data, shoppers plan to spend 4% less between Black Friday and Cyber Monday compared to last year. This is a sharp shift from the past few years, when spending kept climbing.

Both lower and higher-income shoppers are tightening their budgets.

People earning under $50,000 expect to cut spending by 12%, while those making over $200,000 plan to scale back by 18%. Even so, Deloitte expects plenty of shoppers to turn out during the holiday week.

Consumer confidence is low. The University of Michigan reports sentiment near a record low, with 69% of people expecting higher unemployment. Inflation stands at 3%, with fears it could rise to 4.5% next year, adding pressure to household budgets.

Discount-focused retailers like Walmart, Gap, and TJX are seeing increased traffic, while luxury stores struggle. The Mall of America plans giveaways for early customers, and executives see a positive momentum heading into the weekend.

Half of shoppers plan to use buy now, pay later apps, especially younger buyers. Analysts forecast holiday sales will top $1 trillion, up 3.7% to 4.2% from last year. 

Early online sales reached $79.7 billion, a 7.5% increase. Despite some tariff-related price pressures, retailers are keeping deals attractive.