Survey: Holiday shoppers to hunt for discounts amid higher prices
The vast majority of consumers are looking for ways to reduce holiday spending this year.
The first annual Holiday Shopper Survey from AI-powered personalization platform Monetate revealed that Two-thirds (67%) of consumers are concerned about rising prices, tariffs, and inflation impacting their holiday shopping, with nearly half (49%) saying they are “very concerned, revealed the first annual Holiday Shopper Survey from AI-powered personalization platform Monetate. Three-quarters (76%) of those surveyed are actively looking for discounts and promotions to reduce holiday shopping costs, while 59% plan to buy fewer non-essential items and 49% plan to switch to lower-priced or private label brands.
Nearly half (46%) of respondents told Monetate they will prioritize apparel and footwear this holiday season, followed by electronics (35%) and groceries/household items (34%). Forty-percent of shoppers will splurge on electronics, followed by travel and experiences (37%), dining and entertainment (34%), beauty and personal care (28%), and luxury goods (35%) this season.
[READ MORE: Experian: Holiday budgets shrinking, shopping habits changing]
A majority (65%) of consumers are planning greater reliance on online shopping this holiday season, while 58% report favoring in-store visits and 21% will opt for buy-online-pickup-in-store. Loyalty to local businesses remains strong, valued by 62% of respondents, while social media influences 32% of purchases.
However, online stores (63%) and mobile devices (43%) edge out physical stores (42%) as the preferred shopping channels, which Monetate says emphasizes the need for more unified shopping experiences.
When searching for holiday items, many consumers plan to rely on artificial intelligence tools for assistance. Roughly seven-in-10 (69%) respondents are open to AI guidance and 46% would use AI to find gifts and deals. However, more than half (53%) expressed some reservations about using AI, often citing privacy concerns (30%). Almost a third (31%) of respondents said they don’t want AI involved in their holiday shopping at all.
Loyalty programs are also expected to play a role in where consumers plan to do their holiday shopping. Monetate’s survey found that only 13% of those surveyed said loyalty programs were “not important” to their 2025 holiday decisions, while 34% called it “very important” and 27% called it "important."
Exclusive discounts (70%) and free shipping (64%) are primary attractions to loyalty programs, with personalized recommendations appealing to 22%.
“Our survey data shows that over half of consumers anticipate spending the same amount or more on holiday gifts compared to last year,” said Monetate CEO Steve Maher. “And while many are bargain-hunting, over 60% still plan to splurge on themselves or others this season. This balance between bargain-hunting and selective splurges presents a strategic imperative for retailers to deploy AI-driven personalization to deliver targeted value in real-time.”
Monetate surveyed 1,500 U.S. consumers for its report.
