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Holiday shopping 2025: Shoppers spend more, feel less confident

Consumers are searching aggressively for value and starting earlier than ever, only to face promo overload and decision fatigue.

Photo by Chantal D / Unsplash

CHICAGO — Holiday shoppers plan to spend more this year, but not because they feel carefree or flush with cash. According to Accenture’s 19th Annual Holiday Shopping Survey, the spending increase is attributed to higher prices, rather than greater confidence. Consumers are searching aggressively for value and starting earlier than ever, only to face promo overload and decision fatigue.

Stress is shaping the journey

Shoppers often feel overwhelmed by the abundance of choices, offers, and unclear options. Eighty-seven percent plan to spend the same amount or more this season, but 76 percent say they are overwhelmed by the number of product choices, and 85 percent report that they are likely to abandon their carts due to frustration or indecision. This could lead to fewer conversions and more returns for retailers, as consumers often settle for something rather than finding the perfect gift.

Frontline workers are also feeling the pressure. One in four reports feeling exhausted after tough customer interactions, even as expectations for service and guidance continue to rise.

Gen AI emerges as the holiday helper

Generative AI tools are revolutionizing the shopping experience. Sixty-six percent of consumers report having used a generative AI tool in the past three months, representing a significant increase from 39 percent in the same period last year. Nearly half of U.S. shoppers plan to use conversational or generative AI tools for Black Friday, and 77% say they are willing to use AI to assist with their holiday shopping.

Heavy gen AI users say the technology helped them handle too many choices, reduced the need to ask for help in stores, and increased their confidence when making purchase decisions.

Retailers are taking notice. Nearly half of U.S. retail executives now consider gen AI one of the most influential trends this season. Many are developing their own recommendation tools to retain shoppers within their ecosystem and to compete with agentic commerce options like ChatGPT’s BuyNow.

The store as sanctuary

Despite the growth of digital, stores still matter. Forty percent of consumers say that brick-and-mortar locations help them cut through the noise and make decisions faster. Seeing and touching products remains a key factor, followed by festive ambiance and in-store perks. Department stores, supermarkets, and discount retailers are positioned to benefit because they offer value and convenience all in one place.

Workers want smarter technology, too. While most retailers provide devices or scanners, frontline employees say they need advanced tools, such as voice-enabled lookup and generative AI support, to better serve guests.

Three winning strategies for Holiday 2025

1. Simplify the journey
Reduce promo overload and help shoppers compare and make informed choices.

2. Make gen AI a shopping partner
Use AI to recommend, reassure and eliminate second-guessing.

3. Strengthen human connection
Empower store associates to guide, support and inspire.

Consumers, retailers and brands are aligned on what matters: value, simplicity and less stress. Gen AI has the potential to bring all three together and help restore something that has been missing from holiday retail for years: joy.

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