This year’s holiday retail season is expected to be a busy one even with some shoppers facing tighter budgets. Consumers say they’ll shop both online and in stores, and buy from businesses that offer value, stand-out products and services, and personalized customer experiences.

Here’s a look at the holiday shopping trends taking shape, plus tips from marketing experts on how to use the consumer insight to attract more customers and boost sales at your small business this season.

Highlight Thoughtful Gifts and Holiday Traditions

Consumers say they’ll keep a close eye on their shopping budgets this year but they’ll prioritize spending on gifts and traditions that matter to them, according to a survey by PWC.

“Well-timed promotions, thoughtful in-store moments, and products that fit into the rituals people aren’t willing to give up can all help turn a cautious shopper into a confident one,” explains the PWC article with its holiday retail forecast.

“In 2026, the holiday season is shaping up to be a time that consumers want both: the physical gift, wrapped and ribboned, and the screen-free experiences that make the season feel like the season.”

Nostalgia can play a significant role in purchasing decisions by tapping into consumers’ positive memories and emotions, explains retail strategist Elizabeth White in a Small Business Trends article. 

“When marketing your products, highlight nostalgic elements, such as familiar packaging or classic designs,” she writes.

“Additionally, share stories that evoke memories, making connections between your offerings and cherished experiences, which can encourage customers to buy.”

Prepare for Online and In-Store Holiday Shopping

Most consumers plan to split their holiday shopping between online and at stores evenly, says a report by management consulting firm Bain & Co.

Forty-percent of the consumers told the poll it’ll be an even split between online and in store shopping, while 24 percent said they’d do mostly online shopping and 13 percent said they’d shop mostly in stores.

“Nearly 70 percent of the holiday season total will come from in-store sales, but e-commerce continues to gain share,” the Bain & Co. article says. ​ 

“We expect in-store sales to grow by 2.5 percent in line with the last two years, whereas we expect nonstore sales to grow by 9 percent, returning to higher growth.”

Compete on Value, Not Price Alone

Shoppers will be paying close attention to prices this holiday season, and business owners should take heed of the fact that consumers have the ease of AI-enabled comparisons at their fingertips.

“Retailers outside the reasonable band on price will drop out of the consideration set before loyalty, perks, service, or experience gets a vote,” according to the Bain report.

However, businesses can attract holiday shoppers by emphasizing what can’t be “cross-shopped,” the article’s authors note.

“When everyone carries the same SKU, price quickly becomes a race to the bottom,” they write.

“Differentiation will come from exclusive assortments that can’t be price-matched line for line, whether distinctive owned brands, unique offerings in specific categories (e.g., prepared holiday meal bundles), or exclusive partner products.”

Help Shoppers Discover Products With AI

The number of consumers who said they’d use AI as part of their holiday shopping was up over last year, 29 percent compared to 22 percent in 2025, the PWC survey showed.

AI-assisted shopping was popular across demographics — 73 percent of Gen Z, 65 percent of Gen X and 60 percent baby boomers said they’d use it, mainly to help with gift ideas, according to the retail holiday forecast article. 

Overall, 68 percent of consumers told the poll it would turn to AI to explore AI for gift ideas they wouldn’t otherwise have considered, vs. looking for something they already have in mind, the post says.

“What most people still don’t do is buy things directly through AI platforms,” it adds. “Sixty-four percent of consumers using AI for ideas continue to open a separate tab and go to a website to make a purchase, rather than using the link recommended by the tool.”

Thirty-percent of the consumers who use AI to search for product ideas said they value convenience and personalized recommendations, according to the SBT article. To stay competitive, businesses should use customer data to better understand consumer behavior.