By Carson Hartzog, The Minnesota Star Tribune

Consumers plan to cut holiday spending this year, putting extra pressure on Twin Cities retailers for their critical shopping season.

Shoppers will shrink their holiday budgets by an average of 5%, the first notable decline since 2020, according to PwC’s annual Holiday Outlook survey. That decline five years ago occurred amid the pandemic and its curtailed holiday celebrations.

“Gen Z is just pulling back significantly,” said Kelly Pedersen, PwC partner, noting the younger generation is facing the highest credit card delinquency rates and shifting more spending toward experiences like concerts and travel, where prices have risen faster than goods.

Consumers are also anticipating a shorter shopping period, with most expecting to have their g

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