Expect a tale of two holiday seasons as the well-off spend and the rest pull back | Gene Marks

Parts of the US economy are doing just fine but many are struggling to make rent, let alone splurging on gifts

Will retailers and merchants have a strong holiday season? That depends. This year, more than most, the 2025 holiday season will actually be two holiday seasons.

If your business caters to higher-income individuals or if you're located in a wealthier part of the country, you'll probably have a decent holiday season. True, even the wealthy are cutting back. But according to the HR firm ADP average salaries have risen between 4.5% and 6.7% depending on whether workers stayed or switched jobs. The stock markets, though increasingly volatile, are up over 13% since the beginning of the year. And in some parts of the country, notably New York, Boston, DC and San Francisco, the average household income is over $125,000 - almost $41,000 higher than the national average. People in this demographic may be a little more cautious but they'll spend.