Major U.S. retailers are pulling out all the stops this holiday season to stand out and attract budget-conscious shoppers. Rising tariffs under former President Trump's policies, persistent inflation, and climbing unemployment rates are prompting Americans to spend more cautiously during the holidays.

Wells Fargo predicts holiday sales will grow by 3.5% to 4% compared to last year. However, this figure does not account for price increases due to inflation, meaning actual consumer spending may remain flat.

"This year's core strategy is back to basics: ensuring retailers can draw shoppers in with extensive product assortments and deep discounts," said Lauren Murphy, a retail analyst at Wells Fargo.

Legacy department store Macy's is revamping in-store experiences to win over cautious shoppers. Budget-friendly Old Navy is leveraging the expertise of Zac Posen, who transitioned from haute couture designer to Chief Creative Officer. Even Walmart, the world's largest retailer, promises a seamless 30-minute process from online order to doorstep delivery.

Executives from all three companies emphasized their commitment to helping customers stretch their dollars further despite rising prices.