Shoppers are approaching the holidays with caution and aspiration at the same time, with many looking to technology for help, according to a survey conducted by Monetate, an AI-powered personalization platform for e-commerce brands.
In the survey, 49% of respondents said they were very concerned and 28% said they were concerned about rising prices due to tariffs or inflation as they approach the holiday season. In looking ahead, 76% of respondents said they plan to prioritize discounts and promotions, while 49% intend on switching to more affordable brands. Some 59% said they would purchase fewer non-essential products and 27% indicated that they would buy second-hand items.
As defined by Monetate, the top three categories that survey respondents said they would prioritize in the year-end shopping were apparel and footwear, selected by 46%; electronics, by 35%; and groceries/household items, by 34%.
Still, that doesn’t mean consumers won’t spend when doing so is particularly attractive: 24% of survey respondents said they would splurge on others in the holiday season, 17% on themselves and 23% on a combination of others and themselves.
In planning, 36% of consumers said their holiday budgets wouldn’t change year over year, while 33% intended to spend less and 23% more than they did in the 2024 season. Where consumers intend to shop more includes retailer websites and apps, for 65%, in physical stores, for 58%, brand websites, for 36%. Only 18% of consumers surveyed said they would use social media sites more this year, while 21% looked forward to using buy-online-pick-up-in-stores services.
The rapidly developing loyalty programs operated by retailers are an attraction for holiday shoppers, the survey related. With that, 34% of respondents said they were very important in making decisions about seasonal purchasing, 27% said they were important and 25% said they were somewhat important. Loyalty features that satisfy consumers include exclusive discounts or promotion, for 70%; free shipping or returns, for 64%; points redeemable for gift cards, at 43%; early access to sales, for 39%; and personalized product recommendations for 22%. Indeed, when shopping for the holidays, 38% of respondents said they would share personal data with retailers if their privacy was protected in return for personalized offers powered by AI, while 11% said they would do so regardless of privacy considerations. Yet, 30% said no to sharing personal data for deals due to privacy concerns and 22% said they don’t share data at all.
In all, 31% of consumers said they don’t want AI involved in their holiday shopping, while 26% are open to trying it, 23% are interested but cautious and 20% said they would welcome AI help with finding gifts, deals and suggestions.
Consumers are giving consideration to neighborhood merchants, with 28% of survey respondents saying it’s very important to buy local in the holidays, 32% saying it’s important and 27% saying it’s somewhat important.
Seven in 10 consumers say friends and family have the most bearing when it comes to holiday shopping decisions, followed by online reviews, at 53%; social media at 32%; retailer websites, at 28%; and influencers, at 12%.
