What's Happening?
In 2025, consumer behavior during the holiday shopping season is being significantly influenced by technological advancements and economic changes. According to a report by BCG, consumers are increasingly
strategic in their shopping, prioritizing major sales events like Black Friday and Cyber Monday to secure the best deals. The report highlights that consumer awareness and intent to shop during these events have increased, with 96% awareness for Black Friday and 84% for Cyber Monday. Additionally, 77% of consumers plan to delay purchases to take advantage of these sales. The use of generative AI tools, such as ChatGPT, is also on the rise, with 51% of U.S. consumers utilizing these technologies to find deals and plan purchases. Retailers are advised to engage customers early and maintain visibility in AI-driven shopping ecosystems to capitalize on these trends.
Why It's Important?
The shift in consumer behavior towards strategic spending during holiday sales events reflects broader economic and technological trends. As President Trump's tariffs impact global trade, consumers are becoming more price-sensitive and cautious with their spending. The increased use of AI tools for shopping indicates a growing reliance on technology to enhance consumer decision-making. This trend presents both challenges and opportunities for retailers, who must adapt to changing consumer expectations by offering transparent and consistent deals. The heightened importance of Black Friday and Cyber Monday underscores the need for retailers to effectively engage with consumers and build loyalty through strategic marketing and pricing strategies.
What's Next?
Retailers are expected to focus on optimizing their product data and content for AI tools to maintain visibility and influence purchase decisions. Strengthening owned channels, such as loyalty programs and personalized offers, will be crucial for delivering differentiated experiences and maintaining customer relationships. As consumers continue to prioritize value and strategic spending, retailers will need to balance offering competitive deals with maintaining profitability. The ongoing economic uncertainty and geopolitical tensions may further influence consumer behavior, necessitating agile and responsive strategies from retailers to meet evolving demands.
Beyond the Headlines
The increasing use of AI in shopping not only enhances consumer experiences but also raises questions about data privacy and the ethical use of technology in retail. As AI tools become more integrated into shopping processes, retailers must ensure that they are using consumer data responsibly and transparently. Additionally, the reliance on AI could lead to a digital divide, where consumers without access to these technologies are at a disadvantage. Retailers and policymakers may need to address these issues to ensure equitable access to the benefits of AI-driven shopping.
