Nearly half of shoppers are worried about affording holiday gifts this year, according to an ICSC report on consumer sentiment heading into the season.

The finding signals a squeeze on discretionary spending. Concerns about the job market, as well as personal and household debt, are affecting how much consumers plan to spend this season, per the report.

Why does affordability anxiety matter for marketers?

When close to half of a retailer's customer base doubts it can cover gift purchases, promotional strategy has to shift. Value messaging, flexible payment options and entry-level price tiers become central to seasonal campaigns rather than optional extras.

The ICSC data points to two specific pressures on household budgets:

• Job-market concerns, which weaken confidence in future income
• Personal and household debt, which constrains current spending capacity

Both forces act on the same decision: how much a shopper allocates to holiday purchases, and where.

What does this mean for the holiday season?

Retailers and brands should expect consumers to plan more carefully and spend more selectively. Marketers that acknowledge budget pressure directly, rather than pushing aspirational messaging, are better positioned to convert cautious shoppers.

For the trade, the report's core message is straightforward: affordability is now a mainstream consumer concern, not a fringe one. Campaigns built for a strained household wallet are likely to define the winners of this holiday season.