Chicago shoppers tighten budgets as inflation looms
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Welcome to the unofficial start of the holiday shopping season.
Why it matters: Higher prices and economic uncertainty are making shoppers anxious and more frugal.
The big picture: More than 60% of respondents to a new Deloitte survey expect a recession is ahead, forcing many of them to scale back on holiday shopping.
What they found: Nearly 80% of Chicagoans surveyed expect higher prices this year and have budgeted about $1,550 for their holiday shopping, down 11% from last year.
- Nearly two-thirds (63%) of Americans say they are more concerned about inflation than they were three months ago, according to another retail survey — BMO's Real Financial Progress Index.
- 8 out of 10 shoppers are adapting their spending this year, according to BMO.
What they're saying: "The holidays this year come on the heels of a period defined by inflation and price volatility for everyday items, leaving many consumers confused and stressed as they plan for year-end festivities," said Paul Dilda, head of U.S. Consumer Strategy at BMO.
State of play: Consumers are seeking cost saving ideas like Thanksgiving week sales, but also regifting presents, which half of people surveyed by Deloitte are considering. About 30% will go the DIY route.
- Shoppers looking for lower prices have also given a boost to big-box retailers like Costco, Walmart and Target, with a 15-point increase in the percentage of shoppers planning to buy there versus last year.
- Yes, but: Those sales could be stifled by the "We Ain't Buying It" movement pushed by opponents of President Trump, who are calling for a spending boycott at places like Target, Home Depot and Amazon. Organizers say those businesses are complicit in some of the actions pushed by the administration, like anti-DEI practices and ICE raids.
Zoom in: For Small Business Saturday, multiple Chicago neighborhoods and suburbs are rolling out events and specials.
- Saturday is also the annual One of a Kind Show that features local artisans and makers selling their goods.
The bottom line: Things are most likely more expensive wherever you're shopping, so strategize on how to stretch your dollar or get creative in your gift giving. Moms love a homemade gift, at any age.