The 2025 Holiday Shopper: Value Driven and Overwhelmed
The holiday season is one of the most important periods of the retail calendar, but the landscape has become increasingly complex.
Economic uncertainty, shifting consumer expectations, and rapid advances in technology are shaping how people shop and how brands communicate.
Economic Pressure
Consumer feelings about the economy remain cautious, and that caution is shaping buying behavior. According to Marketing Dive, surveys show that many shoppers expect the economy to weaken in the months ahead and anticipate fewer discounts from brands during the holiday shopping season. While overall holiday spending is still projected to grow, this may reflect higher prices rather than increased confidence. This puts added pressure on brands to deliver on value.
Consumers are paying attention to discounts, loyalty rewards, and quality vs. price. Many shoppers purchase items once they go on sale and respond positively to personalized discount codes or limited-time offers. At the same time, many retailers do not rely solely on price cuts for holiday promotions. Heavy discounting can erode profitability and teach shoppers to wait for sales, so some marketers are focusing on value messages that highlight emotional connection, tradition, and shared experiences.
Changing Consumer Behavior
There is a mix of enthusiasm and stress shaping the overall experience. On one hand, holiday shoppers are increasingly strategic. Many are shopping earlier than ever, using loyalty points and taking advantage of sales whenever they appear rather than waiting for Black Friday and Cyber Monday deals. On the other hand, according to Accenture’s holiday research report, more than three-quarters of consumers say they feel overwhelmed by too many product choices, and a significant number abandon online carts out of frustration or indecision.
Excitement about gifting remains high, but so does the desire for a simplified shopping experience. During the holidays, shoppers want clarity, inspiration, and a sense of connection, which may be one reason physical stores are seeing renewed interest. Visits to brick-and-mortar locations give customers a chance to see and touch products, enjoy festive displays, get gifting inspiration, and receive help from store staff. For many shoppers, these experiences add joy and reduce uncertainty.
Retailers Gain Influence
Consumers are shifting away from brand-owned sites and toward multibrand retail platforms. Larger retail websites and apps are viewed as more reliable and more likely to offer deals than individual brand sites. Mobile shopping continues to expand as well. According to Adobe’s holiday shopping trends report, forecasts show that more than half of all online holiday spending will take place on mobile devices. This shift requires retailers to create seamless mobile experiences, since many customers are now researching gifts and deals, comparing prices, and completing purchases entirely on handheld devices.
Buy now, pay later services (discussed in Chapter 15 Appendix/Bonus Chapter B) are also gaining ground. Spending through these payment tools is expected to rise again this season, with record levels projected for key shopping days. The appeal is rooted in flexibility, especially during a time when many consumers are trying to manage tight budgets.
Gen Z Shoppers
Gen Z (born between 1997 and 2012) remains a powerful but complicated demographic. Some members of this generation are cutting back on spending more sharply than other age groups, yet they continue to be highly influential in setting trends. Nearly all Gen Z shoppers say they are searching for deals, but they also seek personalized experiences across marketing channels and appreciate brands that feel authentic.
Although Gen Z is often described as digital-first, research shows that they frequently shop in-store and consider in-store shopping an experience rather than a task to be completed. Many younger hoppers visit physical stores weekly and view them as sources of inspiration. Retailers are responding by hosting events, partnering with creators, and building community-driven experiences that appeal to young shoppers.
Wishlists are also important. Many Gen Z consumers share digital lists with friends and family, which gives brands an opportunity to build tools and partnerships that make the gifting process more creative and collaborative. For example, more than half of Urban Outfitter’s Gen Z loyalty members use wishlists to share gifting ideas. To support this, the retailer partnered with Canva to create customizable and sharable wishlist design templates and encouraged shoppers to share their wishlists on social media by hosting a contest.
Social platforms continue to play a major role in holiday product discovery for all ages. Many shoppers use social media and influencers for inspiration. Social media users also tend to spend more on holiday purchases than people who do not use these platforms. Brands are expanding their partnerships with digital creators, using dedicated storefronts and curated pages that showcase influencer-selected products. These partnerships provide a native shopping experience where entertaining content and product recommendations come together.
AI and Holiday Shopping
A growing percentage of consumers say they use artificial intelligence (AI) tools to find gift ideas, compare prices, and reduce uncertainty. Younger shoppers are particularly open to using AI to handle part of the gift-buying process if it means reducing stress. Retailers are investing in AI-powered tools on their own websites to match shoppers with products, recommend gifts for different age groups or simplify transactions.
Marketers are also experimenting with generative AI in their advertising creative. Some brands, such as Coca Cola, have released fully AI-generated holiday ads, although consumer reactions vary.
Looking Forward
The 2025 season shows that holiday shopping is no longer just about the best deal or the biggest product selection. It is a reflection of how consumers want to feel during a stressful time of year and how retailers meet those needs. Brands that understand both the emotional and practical sides of the season may be better positioned to serve shoppers.
In the Classroom
This article can be used to discuss buying behavior (Chapter 11: Customer-Driven Marketing).
Discussion Questions
- How are economic concerns shaping the way consumers approach holiday shopping in 2025?
- How are AI tools influencing the holiday shopping experience for both consumers and retailers?
- Why do physical stores still play such an important role during the holiday season, despite the growth of online and mobile shopping?
This article was developed with the support of Kelsey Reddick for and under the direction of O.C. Ferrell, Linda Ferrell, and Geoff Hirt.
Sources
Accenture, "Research Report: Holiday Shopping 2025," https://www.accenture.com/us-en/insights/consulting/consumer-holiday-research
Adobe for Business, "2025 Holiday Shopping Trends: Winter's Here—and So Are the Holiday Retail Trends," https://business.adobe.com/resources/holiday-shopping-report.html
Jessica Hammers, "How Gen Z Is Reshaping Holiday Marketing—and What Brands Can Do About It," Marketing Dive, November 19, 2025, https://www.marketingdive.com/news/how-gen-z-is-reshaping-holiday-marketing-and-what-brands-can-do-about-it/805751/
Sara Karlovitch, "Holiday Shoppers Expect Less Discounts in 2025: Here's What the Numbers Say," Marketing Dive, September 12, 2025, https://www.marketingdive.com/news/holiday-shoppers-expect-less-discounts-in-2025-what-numbers-say/759921/
Sara Karlovitch, "Value Tops Shoppers' Wish Lists This Holiday Season in New Survey," Marketing Dive, November 19, 2025, https://www.marketingdive.com/news/value-tops-shoppers-wish-lists-this-holiday-season-in-new-survey/805744/
Linda Ferrell is the Roth Family Professor of Marketing and Business Ethics in the Raymond J. Harbert College of Business, Auburn University. She was formerly Distinguished Professor of Leadership and Business Ethics at Belmont University. She completed her Ph.D. in business administration, with a concentration in management, at the University of Memphis. She has taught at the University of Tampa, Colorado State University, University of Northern Colorado, University of Memphis, University of Wyoming, and the University of New Mexico. She has also team-taught classes at Thammasat University in Bangkok, Thailand.
