By Habari Entertainment | Phoenix, AZ

For the first time since 2020, U.S. shoppers are planning to cut back on holiday spending. A new national survey shows consumers across the country tightening their budgets heading into Black Friday and the holiday season — and for millions of Black American households, the impact will be especially hard-hitting.

At the same time, overall crowds are expected to be bigger than ever, a contradiction that says everything about the state of the American economy: more people out shopping, with less money to spend, and fewer real deals available.

This year’s outlook points to a growing affordability crisis, one that disproportionately affects Black families, Black-owned businesses, and communities already facing widening wealth gaps.

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A Tough Holiday Ahead: Spending Declines for the First Time Since 2021

According to the survey released this week, Americans across income levels are planning to reduce their holiday purchases — marking the first decline in four years.

But among households earning under $50,000 a year — a demographic that includes a large portion of Black American families — expected spending drops by 12 percent.

This is no small dip. It’s a signal that:

• Inflation is still squeezing essentials.

• Wages are not keeping pace with household needs.

• Families are prioritizing bills and groceries over gifts.

Many survey respondents described a simple reality: “We just can’t afford it this year.”

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Crowded Stores, Fewer Deals — A Hidden Burden on Black Shoppers

Even as budgets shrink, major retailers are projecting record foot traffic for Black Friday. Reuters reports that shoppers will face:

• Fewer major discounts

• Higher baseline prices

• “Deals” that are actually 5–15% more expensive than they were two years ago

• More aggressive promotions masking weaker markdowns

For Black consumers — who statistically spend a higher share of income on essentials — these price dynamics create a painful squeeze.

More shoppers competing for fewer real bargains means many families will pay more for less, even while trying to buy modestly.

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Why This Hits Black America Hardest

1. The Racial Wealth Gap

The median Black household still holds one-seventh the wealth of the median white household. When the economy tightens, Black households generally feel the impact first and recover the slowest.

2. Inflation Disproportionately Impacts Lower-Income Families

Between groceries, utilities, and rent — sectors that have risen faster than wages — lower-income communities are absorbing inflation more acutely.

3. Declining Savings

Pandemic-era savings cushions have evaporated. Federal Reserve data shows savings rates among Black households declining at nearly twice the rate of white households over the past two years.

4. Credit Is More Expensive

Higher interest rates mean credit cards — often used to bridge holiday costs — become an expensive trap.

The result is a holiday season where many Black families will be asked to stretch already-stretched budgets even further.

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The Ripple Effect: Impact on Black-Owned Businesses

Lower consumer spending directly affects small businesses — and Black-owned businesses, which already struggle with lower access to capital, tighter margins, and discrimination in lending, will feel the hit hardest.

Key concerns this season:

• Fewer holiday shoppers

• Reduced discretionary income in surrounding neighborhoods

• Less spending during crucial Q4 revenue cycles

• Slower recovery heading into 2026

This creates a cycle where Black-owned businesses that rely on holiday markets, local retail pop-ups, and online seasonal sales could experience a significant slowdown — just as they were beginning to rebound from previous years’ disruptions.

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A “Crowded But Broke” Holiday Season

Retailers expect record holiday traffic this month — not because consumers are thriving, but because shoppers are hunting for deals that no longer exist.

Even those crowds hide the real story:

• Many shoppers are browsing, not buying.

• High inflation means standard prices feel like splurges.

• Discount quality is at its weakest point in years.

• Families are turning to layaway, buy-now-pay-later apps, and credit, risking further debt.

This creates what economists are calling a “crowded but broke” holiday economy.

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What This Means for 2026

If spending continues to decline, experts warn of several outcomes:

• Slower growth for major retailers

• Increasing pressure on families heading into next year

• Continued economic strain on Black communities

• Rising debt among low-income households

• Reduced savings and worsening wealth inequality

But it also may push more Americans — especially Black Americans — to reconsider where and how they spend their money, creating an opening for:

• Black-owned business directories

• Community buy-local movements

• Economic activism campaigns

• Financial education initiatives

• Holiday markets uplifting Black artisans and creators

The question now is whether communities can turn a difficult season into a moment for reinvestment and collective strategy.

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Conclusion: A Season Defined by Restraint

For many Black families, this year’s holiday season will be a balancing act: trying to maintain traditions, support loved ones, and stretch every dollar — all while navigating an economy that feels tilted against them.

What becomes clearer every year is this:
The economic health of Black America is inseparable from the economic health of the country.

Lower spending is not just a statistic. It is a warning sign — and an opportunity — for the systems, businesses, and policymakers who shape the American economy.