What Changes Can We Expect with Holiday Shopping This Year?

Holiday shopping in 2025 is expected to hit new highs, with total consumer spending projected at $253.4 billion. While this represents a 5.3% increase from last year, it’s a slower pace compared with the 8.7% growth seen in 2024. Rising prices and economic uncertainty have prompted some shoppers to tighten their budgets. Still, big sales events and online deals continue to draw consumers looking to make the most of their holiday dollars.

Buy-Now-Pay-Later Makes Gifts More Accessible

With wallets feeling the pinch, many shoppers are turning to buy-now-pay-later (BNPL) options to spread out costs. Adobe predicts BNPL transactions will account for more than $20 billion in online purchases this season, growing by around $2 billion compared with last year. What was once mainly used for larger purchases is now increasingly common for everyday items, helping people manage their spending while still enjoying the holiday season.

AI-Powered Shopping Is on the Rise

Artificial intelligence is becoming a key part of how people shop. Brands such as Ralph Lauren and Pinterest are launching AI tools to simplify the buying process, offering personalized recommendations, gift ideas, and style suggestions. Adobe’s data shows that AI-driven traffic to retail websites surged dramatically last year, and 2025 is expected to see continued growth, particularly in the days leading up to Thanksgiving. More than a third of consumers report using AI-powered services to research products, get inspiration, or compare options before making purchases.

A New Era of Holiday Shopping

The combination of technology and flexible payment options is reshaping the way people approach holiday shopping. While spending growth may be slower than in past years, tools like AI assistants and BNPL plans are helping shoppers navigate the season efficiently and affordably. Consumers are leaning on these resources to make smarter decisions, discover gifts more easily, and stretch their budgets further.

In short, the 2025 holiday shopping season isn’t just about higher numbers—it’s about smarter, more connected, and flexible ways for people to shop. From AI-guided product searches to splitting payments over time, the way we approach holiday purchases is evolving, setting the stage for a new standard in retail.

Cate Bender, the author, is Project Coordinator of Marketing Keys