Americans intend to cut holiday gift purchases in hit to retail

US shoppers say they’re going to spend less on holiday gifts this year, which would deliver another blow to retailers that have struggled with waning demand.

Spending intentions for gifts declined 3% from a year ago, according to a survey of more than 4,000 respondents by Deloitte. Shoppers said they will boost overall expenditures from October to December by 8%, with spending on experiences, decorations and entertainment driving those gains.

That points to retailers needing to offer more promotions and discounts to lure shoppers who still expect to see higher price tags this Christmas. The report is similar to recent data from PWC, which saw that high prices have eroded customers’ brand loyalty.

“With consumers leaning more into experiences and continuing to search for value, retailers have the opportunity to attract shoppers and better connect with customers by focusing on loyalty programs and offering unique incentives,” said Brian McCarthy, principal, Deloitte Consulting LLP.

The survey also showed that Americans are shifting purchases to retailers and brands deemed more affordable. Those results echoed sentiment in Deloitte’s survey for the back-to-school shopping period.