Memorial Day weekend is supposed to feel like the unofficial start of summer, but housing and economy analyst Michael Bordenaro says many families are beginning the season with smaller plans, cheaper meals, and cancelled trips.
In a recent video, Bordenaro said the usual summer picture of backyard barbecues, graduation parties, road trips, and vacations is being cut down by inflation and higher fuel costs. Families are not just skipping luxuries, he argued. They are changing the basic things that used to feel normal.
“A lot of those plans have been cancelled or have been downgraded due to the bad economy,” Bordenaro said, adding that many people are being forced to face “just how bad inflation is.”
His main point was simple: people still want to enjoy the summer, but the same gatherings and trips now cost far more than they did before.
The Backyard Barbecue Gets Smaller
Bordenaro opened with the example of a woman who had planned a Memorial Day barbecue for about 30 people. The plan sounded ordinary enough: hamburgers, drinks, fruit trays, and a normal holiday get-together.
But once she priced everything out, especially the beef, the gathering was expected to cost more than $300. According to Bordenaro, that was enough to force a change.
Instead of feeding a large crowd with hamburgers, she decided to invite fewer people, switch to hot dogs, and ask guests to bring side dishes.
That small story says a lot about where household budgets are right now. A holiday cookout is not some fancy vacation or major purchase, yet even that can become stressful when meat, produce, snacks, drinks, and fuel all rise at the same time.
Bordenaro called it an example of people “trading down” their lifestyles in order to get by. That phrase may sound cold, but it fits. Families are not always eliminating fun altogether. They are shrinking it, substituting it, and asking everyone to share the cost.
Prices Are Changing Summer Habits
Bordenaro pointed to recent price increases that he said are hitting common barbecue and travel items especially hard.
He said tomatoes are up 40% year over year, gas prices are up close to 30%, uncooked beef and ground beef are each up 15%, hot dogs are up 12.5%, lettuce is up 20%, and cookies are up 8%.
Even items with smaller increases, like pickles and beer, still matter because they are part of the total cost of a gathering. One item may not break the budget, but a full cart can.
Bordenaro also said 31% of Americans now name inflation or the cost of living as the biggest financial problem facing their family. In his view, that helps explain why families are cutting back even on things that once felt routine.
He gave another example from Michigan, where a family cancelled a Memorial Day trip because driving a GMC Yukon several hundred miles would cost hundreds of dollars in fuel.
In California, Bordenaro said one man described ribeye steak rising from about $7 or $8 a pound to $16 a pound. That man now eats beef once every two weeks instead of twice a week, according to the report.
These examples are interesting because they are not about people suddenly becoming frugal for sport. They show the quiet math behind daily life. A family does not need an economist to explain inflation when the grocery receipt, the gas pump, and the cancelled trip all tell the story at once.
The Stock Market Does Not Feel Like Real Life
Bordenaro argued that consumer spending is starting to look like the country is in a major recession, even while the stock market sits near record highs.
He said politicians often use the stock market as a sign of economic success, but he pushed back on that idea by saying that about 90% of the stock market is owned by the wealthiest 10% of Americans.
That is why, in his view, market gains do not reflect the mood or spending power of everyday families.
Bordenaro said April retail sales rose only 0.5%, which he argued is weak when compared with rising prices. He said that when the most recent inflation number is considered, spending is effectively negative.
He made a similar point about Bank of America’s research, which found that total credit and debit card spending per household increased 4.8% year over year in May. Bordenaro said that kind of number can sound strong until inflation is included, because people may be spending more simply because the same goods cost more.
That is an important distinction. More spending does not always mean more comfort. Sometimes it only means people are paying more to stand still.
Retailers Chase Both The Budget Shopper And The Wealthy Shopper
Bordenaro said major retailers are reacting to this economy by trying to serve two very different groups at the same time: shoppers looking for the cheapest possible options and higher-income shoppers still willing to pay for premium goods.
He said Walmart plans to cut prices on 7,200 items, a 20% increase in markdowns compared with last year. He also said Walmart is trying to grow its Walmart Plus program to bring in more revenue.
Kroger, according to Bordenaro, is also trying to roll back some prices and regain market share. He compared it to Publix in Florida, saying Publix used to feel affordable but has become expensive enough that Whole Foods can now be a better value for some fresh food items, including grass-fed beef and organic vegetables.
Target is adjusting too, he said. The retailer is increasing the number of toys priced under $10 by 9%, adding more $1 items, and bringing in 1,500 new health and wellness items. At the same time, it is still selling higher-end goods like pricey Pokémon cards and premium baby brands.
Bordenaro described this as a “bifurcated economy,” where retailers offer cheap basics for pressured households while still chasing wealthier customers who can pay up.
Home Depot and Lowe’s are having a harder time, he said, because their sales depend heavily on homeowners spending money on renovations and projects. With housing activity slow and budgets tight, many people are putting off bigger purchases.
Bordenaro quoted Home Depot’s chief financial officer as saying customers still have higher incomes and housing wealth, but are feeling the effect of high fuel costs. The CFO said smaller projects, such as painting and patio work, remain stronger, while larger projects are being deferred because of economic uncertainty and unaffordability.
He also cited Lowe’s CEO, who said the company’s core customers are homeowners and remain healthy, but that uncertainty around mortgage rates is weighing on spending. Bordenaro added that Lowe’s is especially concerned about middle-income customers pulling back if high fuel costs continue, because shipping costs also feed into the price of store merchandise.
Brand Loyalty Is Breaking Under Pressure
One of Bordenaro’s sharper points was that many shoppers no longer feel loyal to brands when prices rise too much.
He cited a survey from the software company DOSS, saying 60% of consumers stopped buying a brand they had previously been loyal to this year because of price increases. He also said 70% are less brand loyal now than they were last year.
According to the same survey, Bordenaro said a price hike of 16% or more is often the breaking point that pushes people to cheaper alternatives or makes them buy less. Baby boomers, he noted, appear even more price sensitive, with many willing to stop buying a brand after a 12% increase.
Groceries are the biggest area where people are willing to switch, he said. Bordenaro reported that 82% of people said they would switch grocery brands if prices rise too much, while 76% said they have dropped a food or beverage product they used to buy.
He also said 38% of people have reduced or stopped buying higher-quality food and beverage items altogether. Shoppers may be able to save up to 40% by moving from name brands to private labels, and more people are heading to discount grocers, dollar stores, Costco, and Sam’s Club.
That trend feels especially telling. When people trade down on food, they are not just changing a habit. They are adjusting one of the most personal parts of daily life, because food choices touch family routines, health, comfort, and even pride.
Starbucks Shows What People Still Value
Bordenaro said Starbucks has become a surprising example of how people are still willing to spend when they believe the value is there.
He noted that Starbucks faced backlash after tightening rules on bathroom use and store access, but said customers now appear to be returning. In his view, people want to feel safe and comfortable when they spend money in a business.
Bordenaro said Starbucks revenue rose 8% year over year, with the average transaction up 4%. He also cited the Starbucks CEO as being cautious despite that success, saying the company has not seen a meaningful pullback in consumer spending as gas prices rise, but that the situation could change.
He found it notable that lower-income customers are leaving some fast food brands and returning to Starbucks. His explanation was value: if Starbucks feels like a better deal than McDonald’s, Wendy’s, or Burger King, especially with breakfast sandwiches and other food options, people may choose it even when money is tight.
Bordenaro said the larger lesson for businesses is that value matters more than ever. Customers have limited money, and they are sending it toward places where they feel the purchase is worth it.
That may be the clearest theme of his report. Summer is not really cancelled for everyone, but it is being edited. Families are cutting the guest list, replacing steak with cheaper food, skipping road trips, and hunting for better deals.
As Bordenaro put it, people only have so much money to go around. For many households, the choice is no longer between a big summer and a bigger summer. It is between doing less now or falling deeper into debt later.
Gary’s love for adventure and preparedness stems from his background as a former Army medic. Having served in remote locations around the world, he knows the importance of being ready for any situation, whether in the wilderness or urban environments. Gary’s practical medical expertise blends with his passion for outdoor survival, making him an expert in both emergency medical care and rugged, off-the-grid living. He writes to equip readers with the skills needed to stay safe and resilient in any scenario.
