Holiday shoppers will accumulate credit card debt and rely on Buy Now Pay Later services to finance their purchases this season.
Holiday Shopping Trends for 2025: Selective, Savvy, and Strategic
As the holiday season approaches, consumers are adopting a strategic and selective approach to their spending. Economic pressures and shifting priorities are reshaping how, when, and where purchases occur, with a focus on value, wellness, and digital tools.
Buy Now, Pay Later Services
The increasing adoption of buy now, pay later (BNPL) services is a notable trend this holiday season. While specific data on BNPL usage in holiday shopping is not readily available, the broader trend of consumers using smart incentives, digital offers, and personalized deals suggests that flexible payment options like BNPL fit into the landscape of nonlinear shopping journeys across channels. AI-shifted shopping behaviors and increasing engagement on mobile and digital platforms also indicate that BNPL adoption may continue to rise as part of these technologies.
Consumer Preferences for Retailers
The 2025 holiday shopping season is seeing a notable growth in small, independent online retailers outperforming overall e-commerce growth, gaining roughly 10% in holiday revenue. Consumers are showing a preference for craft and U.S.-made products. Gen Z shoppers are also engaging more with early holiday shopping events in stores and are less price-sensitive to cutting back on gift spending compared to older generations. Nonlinear shopping involving in-store, online, and mobile channels is common, with 40% of shoppers discovering products in one channel but completing purchases in another, highlighting the importance of omnichannel presence for retailers.
Price Sensitivity
This holiday season, consumers are exhibiting strong price sensitivity amid economic uncertainty. Many shoppers plan to cut back on essentials to preserve budgets for gifts, meals, and traditions, with 82% indicating selective spending. Retail sales growth during November and December 2025 in the U.S. is forecasted to increase only modestly by 1.2%, indicating a slowdown due to tighter consumer budgets and tariff impacts. Price sensitivity also drives search behavior and influences how shoppers engage with sales events and promotions globally, demanding consistent but cautious spending.
Additional Trends
Wellness considerations affect gift and food choices, as 60% plan to choose healthier options during the holidays. AI increasingly supports holiday shopping, with over 50% of North American shoppers expected to use AI tools for product discovery and purchase decisions, reflecting a tech-enabled shopping evolution. Early and sustained engagement, especially among younger consumers like Gen Z, is critical, with younger shoppers more receptive to early holiday marketing and in-store experiences.
In summary, the 2025 holiday shopping season is defined by prudent spending, heightened price sensitivity, a rise in small independent retailers, and a digitally savvy consumer base employing omnichannel approaches and emerging technologies like AI and likely BNPL, to navigate a complex economic environment while prioritizing meaningful gift giving and wellness.
The survey was conducted by Censuswide among 2,000 consumers. Nearly a third (32%) of respondents will shop at big-box retailers like Walmart and Target during the holiday season. Retailers are divided on raising or maintaining prices this holiday season, with some companies like Walmart and Lululemon warning of higher prices to cope with tariffs, while others like J.C. Penney and The Home Depot plan to hold their prices steady. Half of respondents in the survey said they won't shop with retailers that increase their prices. One in five millennials (19%) and Gen Z (20%) plan to use buy now, pay later services for their holiday expenses, according to the survey. The survey found that consumers are willing to go into credit card debt and use buy now, pay later services to afford purchases this holiday season.
- As holiday shopping trends evolve, consumers are increasingly opting for buy now, pay later (BNPL) services, aligning with a broader trend of using smart incentives and personalized deals.
- Retail growth during the 2025 holiday season is projected to be modest, with a focus on price sensitivity as consumers tightly manage their budgets.
- In contrast to a slower spending trend, the report indicates a notable increase in small, independent online retailers, with an emphasis on craft and U.S.-made products.
- The retail landscape highlights the importance of adopting omnichannel presence, as consumers frequently discover products across multiple channels and complete purchases in another.
- In addition to BNPL and retail trends, AI tools are anticipated to provide support for holiday shopping, with half of North American shoppers expected to use AI for product discovery and purchase decisions.
