Value, Discounts & Gen Z Drive Holiday Shopping Trends

A new survey from Mastercard reveals that value for money, product quality, and discounts are topping holiday shoppers' wish lists this season. As marketers fine-tune their campaigns to capture early buyer attention, the "Shopper Snapshot 2025: Holiday Shopping Insights" report highlights a surprising trend: Gen Z consumers are leading the charge back to physical stores, even as artificial intelligence (AI) emerges as a significant digital assistant for gift buying.

The Hunt for Value and Deals

Consumers are keenly focused on maximizing their spending power. The Mastercard data indicates that value for money is the paramount factor influencing holiday purchases, closely followed by product quality and promotional discounts. This emphasis on savings translates directly into purchasing behavior: 73% of respondents routinely buy a wish list item once it goes on sale, 71% respond to personalized discount codes, and 63% are prompted to act when limited-time sales are nearing their end. Furthermore, shoppers are eager to leverage existing benefits, with 79% planning to use loyalty points and rewards to complete their purchases. This pursuit of value also presents an opportunity for brands to collect first-party data, as 66% of consumers regularly provide their contact information to receive holiday discounts.

AI and Social Commerce: New Digital Avenues

Artificial intelligence is increasingly becoming a valuable tool for consumers navigating the holiday rush. Approximately half of Gen Z and millennial shoppers expressed willingness to let AI handle gift buying if it could alleviate holiday stress. Already, 42% of consumers are utilizing AI technology to assist with their gift selections. Beyond AI, social commerce is also solidifying its role as a trusted shopping channel. The survey found that 57% of Gen Z and 61% of millennials report increased trust in social platforms for purchases. Interestingly, 53% of Gen Z consumers and 47% of millennials now trust the opinions of influencers more than those of their own friends when making purchasing decisions.

The Enduring Appeal of Physical Stores

Despite the rise of online and social shopping, physical retail locations remain a dominant force this holiday season. A significant 90% of consumers most often frequent brick-and-mortar stores for their holiday shopping needs. Notably, Gen Z stands out as the demographic most likely to shop in physical stores, with 91% engaging in this behavior. For Gen Z consumers, physical stores are a source of inspiration, with 81% reporting that they get gift ideas directly from in-store displays. E-commerce sites, while popular, serve as the second most used source for holiday shopping for 82% of consumers overall, a figure that rises to 87% for Gen Z and 86% for millennials. Additionally, about two-thirds of Gen Z and millennial consumers plan to either increase or maintain their purchasing of second-hand gifts this season, reflecting a growing interest in sustainable and value-driven options.

Consumer Sentiment and Self-Gifting

Even amidst broader economic concerns, consumers are approaching holiday shopping with enthusiasm. The top emotions reported by shoppers are excitement (45%) and a sense of connection (28%). A common indulgence also emerged: over half of respondents (58%) admitted to treating themselves to gifts while shopping for others.

Survey Methodology

Mastercard's "Shopper Snapshot 2025: Holiday Shopping Insights" report is based on responses from 4,007 consumers across the U.S., Canada, the U.K., and the UAE. The survey was conducted in partnership with The Harris Poll.