How retailers are responding to the affordability crisis this holiday season

""Retailers have been getting more and more promotional for years in the main, but now they're doing it with their feet standing on thin ice because they don't know what to expect," said Cohen. "The last thing they want is to have overhang inventory for the holidays when the season is over, so they have been discounting frantically.""

""Guests are choiceful, stretching budgets and prioritizing value," said Gomez. "They're spending where it matters most, especially in food, essentials, and beauty, while looking for trend-right deals in discretionary categories.""

""Given our focus on affordability, we recently lowered prices on thousands of everyday food and essential items to help families further manage their budgets," Gomez added."

Consumer sentiment dropped to 51 points in November, the second-lowest reading since 1952. Retailers are responding by investing in lower-priced items and adjusting assortments to meet budget-conscious shoppers. Many retailers have increased promotions and are discounting to avoid holiday overhang inventory. Shoppers are stretching budgets and prioritizing value, focusing spending on food, essentials, and beauty while seeking deals on discretionary items. Target has lowered prices on thousands of everyday food and essential items to help families manage budgets. Several major retailers reported concerns about declining sales and tightened profit outlooks heading into the holiday season.

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