American consumers are planning a cautious approach to luxury purchases this holiday season, with jewellery facing a pronounced pullback in spending intentions. According to fresh research from consultancy McKinsey & Company, 43 percent of US shoppers intend to cut back on jewellery purchases over the coming months, compared with just 18 percent who plan to spend more. This leaves the sector with a net spending intent of minus 25 percent—one of the lowest figures across 22 discretionary categories surveyed.
McKinsey's latest survey highlights sharp pullback in jewellery budgeting despite steady overall holiday spending.
The survey of 4,013 consumers reveals that while overall holiday retail sales are expected to top US$1 trillion for the first time—driven by inflationary pressures—shoppers are becoming far more selective. Categories such as apparel, dining out, and travel are taking priority over fine items and home decor.
Despite the squeeze, retailers have reasons for cautious optimism. Gen Z buyers demonstrated a higher appetite for jewellery compared to older generations. Furthermore, nearly half of respondents plan to begin shopping by late October, with 46 percent utilising artificial intelligence tools to compare prices and uncover deals.
26-10-2026
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