Shoppers Brace for a Budget-Conscious Holiday Season in 2025

Table of Contents

1. Key Highlights:
2. Introduction
3. Economic Pressures Influence Spending Behavior
4. The Importance of Priorities in Holiday Shopping
5. Strategies for Budget-Conscious Shoppers
6. A Multi-Channel Shopping Experience
7. Comparison with Previous Holiday Seasons
8. The Role of Technology in Holiday Shopping
9. Anticipating Future Trends in Holiday Spending
10. FAQ

Key Highlights:

• A significant 82% of consumers plan to save on groceries and essentials to fund holiday expenses, according to Inmar Intelligence's 2025 Holiday Commerce Forecast.
• Essential categories like gifts for family (45%), gifts for children (35%), and holiday experiences (28%) remain priorities, despite budget constraints.
• The holiday shopping landscape will see a near-equal split between physical and digital channels, with over 70% of consumers shopping online and 65% visiting stores in person.

Introduction

As the holiday season approaches, consumers are gearing up for a shopping experience shaped by economic pressures and changing spending habits. A recent report by Inmar Intelligence reveals that while overall spending may not decline, shoppers are expected to make more intentional trade-offs across all categories. With inflation continuing to impact disposable income, many shoppers find themselves scrutinizing every dollar spent. The 2025 Holiday Commerce Forecast sheds light on these emerging behaviors, providing insights into how consumers will navigate their holiday shopping this year.

Economic Pressures Influence Spending Behavior

The findings from Inmar Intelligence indicate a significant shift in how consumers approach holiday spending. Last year, inflation compelled 85% of Americans to reduce discretionary holiday spending, and 50% of individuals still report facing economic challenges. Despite these pressures, the holiday season is not being abandoned; rather, consumers are prioritizing their expenditures.

“Higher costs and holiday pressures mean shoppers will make more intentional trade-off decisions in every category,” the report states, emphasizing that although spending will not drop, it will be more deliberate. This year, shoppers will be making choices that reflect their financial realities, seeking ways to celebrate without overspending.

The Importance of Priorities in Holiday Shopping

Among the core findings in the report, certain categories are deemed non-negotiable, even in the face of budget constraints. Gifts for family are at the forefront of priorities, with 45% of consumers asserting they will allocate funds for these purchases. Gifts for children follow closely at 35%, while 28% of respondents plan to spend on holiday traditions and experiences.

These insights reveal a collective desire among consumers to maintain holiday traditions, even as they navigate tighter budgets. The emphasis on gifts and experiences underscores the emotional significance of the holiday season, where spending is often motivated by family and connection rather than materialism.

Strategies for Budget-Conscious Shoppers

As consumers prepare for the holiday season, many are looking for ways to maximize their budgets. The use of various savings formats has become prevalent, with shoppers utilizing digital and paper coupons, instant redeemables, and direct-mail discounts to make their spending stretch further. Over half of the survey respondents (55%) indicated that discounts, coupons, or promotions significantly influence their purchasing decisions.

In addition to traditional savings methods, convenience is also a priority. A notable 43% of consumers highlighted the importance of conveniences such as curbside pickup and fast shipping, indicating a preference for a seamless shopping experience. As shopping habits evolve, these conveniences are likely to become integral to holiday shopping strategies.

A Multi-Channel Shopping Experience

This year, the shopping experience will not be confined to a single channel. The report highlights that today’s purchase journey is increasingly nonlinear, with consumers often exploring multiple avenues before completing a transaction. For instance, four in ten respondents plan to use their mobile phones to check prices or reviews while shopping in-store, while 38% will research products online prior to making in-store purchases.

The blending of digital and physical shopping is a significant trend for 2025. While 59% of respondents intend to buy gifts in-store, 50% also plan to make purchases via mobile devices. Shoppers are increasingly utilizing their computers (31%) and social media platforms (15%) to discover and buy gifts, demonstrating that the lines between online and offline shopping are blurring.

Comparison with Previous Holiday Seasons

Reflecting on the previous year's trends, the report notes that the 2024 holiday shopping season saw remarkable growth in online retail sales. Between November 1 and December 31, 2024, online sales surged by 8.7% year-over-year, reaching $241.4 billion according to Adobe Analytics. In contrast, Mastercard’s SpendingPulse report indicated a more modest 2.9% increase in in-store sales over the same period.

As the 2025 holiday season approaches, it remains to be seen whether shopping behaviors will mirror those of the previous year. With economic conditions fluctuating and consumer priorities shifting, the landscape for holiday shopping is set to evolve, demanding adaptability from both consumers and retailers.

The Role of Technology in Holiday Shopping

The integration of technology into the shopping experience is another key factor influencing consumer behavior this holiday season. As shoppers become more tech-savvy, they are leveraging online tools to enhance their in-store experiences. The ability to compare prices, read reviews, and access promotions through mobile devices empowers consumers to make informed decisions.

Retailers are responding by optimizing their digital channels and ensuring that their in-store experiences are synchronized with online offerings. This alignment is crucial, as consumers expect a seamless transition between online and offline shopping, particularly during the busy holiday season.

Anticipating Future Trends in Holiday Spending

Looking ahead, it's important for retailers to remain vigilant and responsive to the changing dynamics of consumer behavior. The insights from the Inmar Intelligence report suggest that holiday shopping in 2025 will be characterized by a blend of intentionality and innovation. Retailers who can anticipate these trends and adapt their strategies accordingly will likely find success in capturing the attention of budget-conscious shoppers.

Moreover, as competition in the retail space intensifies, brands must differentiate themselves through unique offerings and personalized experiences. Understanding the motivations behind consumers’ spending, particularly during the holidays, will be essential for retailers aiming to thrive in this evolving market landscape.

FAQ

Q: How has inflation affected holiday shopping behavior?
A: Inflation has led many consumers to cut back on discretionary spending. However, most are still committed to celebrating the holidays, albeit with more intentional spending decisions.

Q: What categories are consumers prioritizing for holiday spending?
A: Key categories include gifts for family and children, as well as spending on holiday traditions and experiences.

Q: How are consumers planning to save money during the holiday season?
A: Many shoppers are utilizing discounts, coupons, and promotions, in addition to seeking conveniences like curbside pickup and fast shipping to stretch their budgets.

Q: What role does technology play in holiday shopping?
A: Technology enhances the shopping experience by allowing consumers to compare prices, read reviews, and access promotions through mobile devices, contributing to a more informed purchasing process.

Q: Will online shopping continue to grow during the holiday season?
A: Based on previous trends, online shopping is expected to remain strong, with many consumers using multiple channels to complete their purchases. Retailers need to ensure their online and in-store experiences are well-integrated to meet consumer expectations.