US jewellery retailers are entering the 2026 holiday season as consumers maintain overall holiday budgets but become more selective about discretionary purchases, according to McKinsey & Company’s latest ConsumerWise research.
McKinsey’s survey found that 47% of US consumers expect to spend about the same during the 2026 holiday season as in 2025. While 23% plan to spend more, 21% expect to spend less. However, jewellery is among the discretionary categories facing the strongest spending pressure.
In McKinsey’s second-quarter research, jewellery, accessories and home décor recorded the most negative spending intentions. Across several discretionary categories, 40% to 50% of consumers said they expected to reduce spending over the following three months.
The trend points to a redistribution of holiday budgets rather than a broad withdrawal from seasonal spending. Consumers are still buying, but are becoming more selective about which categories receive their discretionary dollars, the report noted.
Younger consumers remain important to jewellery. Although 34% of Gen Z and 35% of millennials expect to reduce their overall holiday spending, Gen Z shows comparatively strong planned spending on jewellery and accessories.
The timing of purchases is also moving forward. McKinsey found that 45% of consumers expected to have started holiday shopping by the end of October, extending the selling window for retailers ahead of November’s peak period.
Digital discovery is undergoing a further shift. Forty-six percent of consumers said they would definitely or probably use AI for holiday shopping. Among these users, 49% plan to use AI to compare products or prices, while 48% will use it to find deals and discounts.