Seventy-four per cent of US consumers plan to spend the same or less than last year, while 41 per cent expect to buy fewer items as the holiday season begins, as per First Insight’s 2025 Holiday Shopping Report.
Discounts carry significant weight as 80 per cent said they need at least a 15 per cent promotion to make a purchase. Luxury gifting continues to decline, with 65 per cent saying they do not plan to buy any luxury items this year.
AI and social platforms are reshaping holiday shopping journeys. A majority of shoppers will use social media (57 per cent) and AI tools (39 per cent) to research gifts and discover deals. Notably, 68 per cent of Holiday Shoppers Using AI Plan to Buy Directly Through It, More Than on social media. Among those using platforms such as ChatGPT, Gemini and Claude, almost seven in ten will complete purchases directly through AI—particularly Gen Z, where 73 per cent rely on AI from product discovery to checkout.
Logistics concerns are shaping behaviour, with nearly 6 in 10 (57 per cent) consumers worried about delivery delays. Despite tightened budgets, 86 per cent are willing to pay for shipping, and 17 per cent would pay more than $20 to ensure timely delivery.
Gift cards remain a favourite budgeting tool. Sixty-eight per cent of consumers intend to buy gift cards this year, rising from 64 per cent in 2024, and 62 per cent say they will purchase more than last year to manage spending efficiently. Facebook and TikTok remain the top platforms for gift discovery and purchases, while big-box retailers like Walmart and Target continue as preferred shopping destinations, added the report.
“This holiday season marks the moment AI truly enters the shopping aisle. Consumers aren’t just using it to search—they’re buying through it. At the same time, they’re more cautious about spending, focusing on price, value, and convenience. Retailers that listen to their customers and adapt quickly to these new buying behaviours will be the ones building loyalty that lasts long after the holidays,” said Greg Petro CEO at First Insight.
The study is based on responses from 1,145 US consumers aged 18 to 80+, reflecting a broad and representative view of emerging holiday shopping dynamics across the country.
ALCHEMPro News Desk (SG)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
