The 2025 holiday season is around the corner. And it comes at a time where economic uncertainty looms over our heads. Early research suggests a not-so-merry holiday season in 2025 – with PwC’s 2025 Holiday Outlook survey stating that consumers expect their seasonal spending to decline on average by 5% from 2024 — the biggest drop since 2020. 

The biggest drop in holiday spending is expected from Gen Z shoppers – who are just stepping out in tough job markets with little to no savings. This generation is anticipating a 23% drop in holiday shopping spending. But for others, including Millennials and Gen X shoppers, the spending might remind the same or even increase this season. 

Source: PWC Holiday Outlook, 2025

While holiday spending might be dropping, that shouldn’t distract us from how much shopper behavior is expected to change during this holiday season. From AI-suggested gifting and product discovery to re-commerce as a leading a cultural shift, this year’s shopping trends are full of surprises!

Let’s dive into the top 10 holiday season trends for 2025 and how retailers can prepare to tackle them:

1: Value Trumps Price this Holiday Season

While shoppers are constantly looking for the best pricing deals, it doesn’t just stop at low prices for many. Shoppers, especially Gen Z consumers, want quality, authenticity and opt for brands that align with their personal values. Shoppers want to feel good about their buying choices by opting for sustainable products that are ethically made or sourced. Additionally, they want to buy products that are high quality and durable, but also cost-effective. 

Building trust has become as important for brands as offering low prices in order to appeal to this new shopper. Brands need to highlight value-added features, durability, and certifications to win over these shoppers and not depend solely on discounting to increase conversions and brand loyalty. 

Next Read: Price Intelligence Blueprint for Competitive Advantage (eBook)

2: Re-Commerce Re-enters the Equation

Re-commerce has resurfaced, this time stronger than ever before. Gen-Z shoppers are leading this movement and are making thrifting and second-hand shopping look cool. Re-commerce is not just cost-effective but also sustainable, making it a popular choice amongst young buyers. eBay’s Re-commerce Report showed that a whopping 86% of consumers sold or bought pre-loved items on eBay in 2024. 64% feel that re-commerce is better for the planet, marking a big shift towards the circular economy.

Beyond re-commerce, Gen Z and Millennial consumers prefer certified refurbished electronics and review carbon labels and repairability scores before making a purchase. This cultural shift is here to stay as young shoppers are moving away from consumerism and embracing sustainable, affordable lifestyles. Cost-benefit is another driving force making re-commerce an appealing option to this generation.

As more people are moving towards this trend, brands have no choice but to embrace it. Many brands are onboarding the re-commerce bandwagon by introducing their own resale channels, collaborating with existing retail channels, or offering buy-back programs – a case in point being IKEA’s furniture exchange program. 

3: Flexible Payment Options like BNPL Explode 

The rising economic uncertainty has taken its toll on consumers’ purchasing power. But thanks to flexible payment options like BNPL, credit cards, and mobile wallets, shoppers are willing to loosen their purse strings this holiday season. Credit card usage has climbed sharply, with 52% saying it’s among their top three payment methods (up from 40% last year) and in 2025, 91.5 million American consumers are forecasted to use BNPL, up 5.78% year-on-year. 

An Adobe for Business report forecasts that 2025 Cyber Monday will set a record for BNPL spend in a single day with BNPL spending crossing $1 billion. This will make it the first day to cross $1 billion in BNPL spend.

Brands and retailers can make use of BNPL options throughout the buying journey rather than only at checkouts to incentivize shoppers to make the purchase. Offering shopper-friendly BNPL options can give hesitant shoppers the push they need to finish a purchase.

4: Mobile-Commerce Dominates this Season

Mobile devices have infiltrated even the smallest nooks of the country, cementing their dominance. Therefore, it comes as no surprise that 2025 is set to be the first full year in which mobile commerce accounts for over 50% of online spend. Adobe’s latest report forecasts mobile revenue share to hit a record 56.1% this holiday season, while 7 in 10 retail site visits will take place on mobile devices, a massive pivot within a span of a few years.  

Brands and retailers need to take note of this transition and double down on ensuring their mobile sites and apps deliver seamless navigation and an easy checkout for shoppers. 

5: Hybrid Shopping Takes the Win

While holiday shopping was once all about the in-store experience, that trend is getting replaced by the convenience and comfort of online shopping. For the first time, holiday gift shopping channels are reaching parity, with 51% of consumers planning to finish their holiday purchases through online marketplaces (e.g., Amazon, eBay, Etsy) and 53% planning to shop in-store.

Additionally, this season is seeing consumers opt for varied fulfillment choices. According to PWC, 70% of all shoppers said they prefer home delivery and 39% said they prefer buying online and picking up in store (BOPIS). Same-day delivery is popular among Gen Z and Millennials, with about 30% of each group saying that’s their preferred delivery option when shopping online.  

6. Gifting Preferences Evolve 

Value is a recurring theme this season, across generations. As the budgets are generally tighter, shoppers are buying gifts more thoughtfully – placing consumables and gift cards at the top of gifting preferences for shoppers this holiday season. While these gifting categories read as thoughtful, they also help shoppers stay within their allocated budgets. 

Over 50% of survey respondents plan to give gift cards to friends and 47% to family members.

Amongst shoppers who chose ‘consumables’, 26% planned it for family, 28% for friends and 23% for themselves. 

Brands and retailers can make the most of this trend by offering in-store promotions and consumable gift baskets and bundles. 

7: AI-Driven & Multi-Modal Product Discovery Goes Mainstream

AI is an undeniable part of our day-to-day lives and has even made into our shopping journeys. AI-enabled recommendations are becoming a large part of how consumers discover products, compare across platforms, and make purchase decisions. About 15% of Gen Z and Millennials also say they might use AI to find gift ideas. 

But it doesn’t just stop at shopping recommendations. Walmart’s recently announced its partnership with OpenAI to make shopping on ChatGPT seamless. The partnership will allow consumers and Sam’s Club members to complete purchases right within ChatGPT – blurring the lines between on-platform and off-platform shopping. 

Additionally, multimodal search is growing rapidly as more people turn to sensory-first image and voice searches rather than text-based searches. Video platforms like YouTube, TikTok, and Instagram are not just for entertainment anymore but serve as ‘search engines’. An eMarketer research showed that around 13% of consumers start product discovery on YouTube and 10% start on Facebook. Other social platforms (Instagram ~7% and TikTok ~7%) also play a meaningful role.

8: Social Commerce & Influencer Trust Play a Key Role

Social commerce has gained immense popularity in the last couple of years, making it a powerful entry point for holiday shopping discovery. Data suggests that shoppers now use social channels as often as search engines to discover gift ideas (43% for both). Social media is also a source of inspiration and influencer ideas for 64% of shoppers.

But it doesn’t just stop at product discovery or gifting inspiration. 18% of US consumers plan to shop directly through social commerce this 2025 holiday season – with influencers playing a key role in generating interest and sales for brands and retailers. 

Influencers would also play a key role in generating interest and sales through curated holiday lists and early gifting guides. For brands, partnering with creators to amplify retail media campaigns will ensure that products are surfaced during peak digital shopping moments. 

9: Retail Media Sees a Boom 

Over the years, holiday shopping season is getting compressed into fewer and fewer weeks. This along with tighter budgets means brands need to do more than just promote or offer discounts – they must target and convert efficiently. That’s where retail media networks (RMNs) come into the picture. RMNs have become the fastest growing digital advertising segment, turning retailer-owned platforms into rewarding ad ecosystems. They are even described as the holy grail of advertising and the third-wave of digital advertising after search and social media.

In the US alone, retail media spending is primed to grow 20% YoY, compared to barely 4-5% for overall digital ads. Retailers like Amazon, Walmart, and Target are at the forefront of this advertising, offering brands first-party data and closed loop attribution. 

For brands, retail media is must have — it’s where holiday shopping decisions are being made. Integrating RMN campaigns into holiday promotions will allows retailers to amplify discoverability, boost conversion rates, and measure performance in real-time.

10. Retailers Embrace AI-driven Price & Promo Monitoring 

As brands and retailers navigate the highly volatile holiday season, reliance on AI will shoot up. Retailers have realized that manual, fixed pricing won’t cut it anymore as shoppers’ expect personalized offers and meaningful discounts. AI pricing engines will help retailers modify and personalize prices based on market trends, competitor price movements, and shopper preferences. 

Over 39% of retailers are already using AI engines to optimize prices in real-time. According to recent research, retailers who have adopted AI pricing strategies have seen an average revenue growth of 10-15% and 5-10% reduction in markdowns. 

AI engines can do a lot more than offer discounts and brands and retailers should use this to their advantage by offering highly tailored, segmented pricing based on real-time demand and consumer behavior.

Final Thoughts – A Tech-Powered Holiday Season

As we get ready for the 2025 holiday season, one key observation is that it’s going to be driven heavily by technology. From AI-driven product discovery and chatbot-led gifting recommendations to mobile-commerce and BNPL dominating the shopping experience, technology is at the forefront of every aspect of the retail journey. 
There’s no going back. The pace at which technology and artificial intelligence are integrating into our daily lives means that technology is now a key driver in deciding the fate of this holiday season and of retail as a whole. It’s time to ride the tech wave and embrace advanced technology in the day-to-day retailing planning and operations. Not sure where to start? Schedule a walk-through with our retail analytics experts and learn how Intelligence Node’s advanced pricing, assortment, and digital shelf analytics can transform your retail business within weeks.