The 2025 holiday shopping season will be defined by a significant shift toward digital discovery, AI-driven purchasing, and value-focused consumer behaviour, according to First Insight’s latest Holiday Shopping Report. The findings reveal that 57% of holiday shoppers will use social media in their shopping process, while 39% will rely on AI tools, marking a notable acceleration of technology adoption in consumer retail.

AI platforms such as ChatGPT, Gemini, and Claude are emerging as full-service shopping companions. Among those using AI, 68% report making purchases directly through AI tools, illustrating growing trust in algorithm-driven recommendations. The trend is even more pronounced among Gen Z, 73% of whom plan to use AI for every stage of the shopping journey, from initial product discovery to checkout. This signals a structural shift in retail decision-making, where generative AI increasingly influences consumer pathways and brand visibility.

Social media remains a powerful driver of holiday retail activity. 42% of consumers plan to check out directly through social platforms, underscoring the rise of integrated shopping ecosystems within apps such as Facebook, TikTok, and Instagram. Facebook leads as the primary research destination (59%), closely followed by TikTok (54%) and YouTube (52%). When it comes to completing purchases, Facebook (59%) and TikTok (54%) again dominate, reflecting their maturing commerce capabilities and algorithmic personalisation.

Despite technological adoption, consumer spending sentiment is cautious. Nearly three-quarters (74%) of shoppers plan to spend the same or less than last year, highlighting the ongoing sensitivity to economic pressures. Gift cards and discounts remain key tactics for stretching holiday budgets. Price and convenience continue to drive both in-store and online shopping, with consumers citing deals (58% in-store; 55% online) and ease of shopping (47% across both channels) as primary motivators.

Logistics remain a notable concern heading into the holiday season. 57% of consumers worry about shipping delays, up from 48% last year. As a result, 86% are willing to pay for shipping, and 17% will pay more than $20 to ensure timely delivery. This willingness suggests heightened expectations for delivery reliability amid global supply chain uncertainties.

While digital commerce continues to grow, physical retail—particularly big-box stores—remains a preferred destination. 26% of consumers favour big-box retailers such as Walmart and Target for holiday shopping, followed by e-commerce marketplaces (15%) and outlet stores (10%). These preferences indicate that value, inventory breadth, and convenience continue to be the key factors in anchoring consumer loyalty.