Small Business Holiday Trends To Watch This Year

Core Insights - Despite cooling inflation in 2025, concerns about tariffs are affecting consumer sentiment, with 51% of shoppers very concerned about tariffs impacting prices and 42% concerned about inflation [1][6] - Americans plan to spend as much as last year on holidays but with more intentionality, focusing on value and seeking out deals [3][4] Consumer Behavior Trends - 65% of households plan to match or increase their holiday budget compared to last year, with higher-income households showing even greater intent [4] - The average American household is expected to spend 5.7% more on holiday expenses in 2025 than in 2024 [5] - 77% of shoppers believe their holiday spending will be affected by tariffs, with many planning to shop early or wait for discounts [6] Holiday Shopping Patterns - A longer holiday season is anticipated, with continuous sales throughout the fourth quarter, driven by economic anxiety and a response to discounts [7] - Cyber Week is projected to account for 38.4% of all holiday spending, with many shoppers waiting for Black Friday or Cyber Monday for major purchases [12] - Mobile ordering reached 54.5% of online revenue in late 2024, but desktop orders had a higher conversion rate [13] Marketing Strategies - Small businesses can leverage their flexibility to navigate the holiday season effectively, focusing on community engagement and tailored messaging [21] - Early sales and targeted marketing are crucial, as 88% of shoppers prefer receiving holiday offers before major holidays [24] - Building a community around the brand can convert local shoppers into high-value customers, with 52% of Americans planning to buy from local brands [26] AI and Technology Integration - 61.3% of small business owners view AI tools favorably, while consumer trust varies significantly across demographics [8][9] - 49% of U.S. shoppers are likely to use large language models for gift idea research, indicating a shift in how consumers seek information [34] - Optimizing websites for search engines can enhance visibility in AI-generated responses, making it essential for businesses to implement relevant keywords [35]