Breaking: U.S. Holiday Shopping Rides Across Channels as AI Aids Bargain Hunters
Table of Contents
- 1. Breaking: U.S. Holiday Shopping Rides Across Channels as AI Aids Bargain Hunters
- 2. Cross‑channel growth remains robust
- 3. E‑commerce leads the charge
- 4. AI gains momentum in bargain hunting
- 5. Key takeaways for shoppers and retailers
- 6. At a glance: the numbers in one table
- 7. Context and what it means next
- 8. Two questions for readers
- 9. Holiday Spending Hits Record Levels in 2025
Shoppers spent more this holiday season, blending online and in‑store purchases while turning to artificial intelligence tools to discover products, compare prices and seize deals. Two major analyses released this week offer a granular view of cross‑channel shopping dynamics and the growing role of AI in shaping consumer decisions.
Cross‑channel growth remains robust
A well‑tracked snapshot shows the key pattern: overall U.S. retail activity, excluding autos, rose 3.9% year over year in the period from November 1 to December 21. The gains were not adjusted for inflation,and the metric covers all payment types.
In a separate seven‑week window from November 1 to December 20, holiday retail spending rose 4.2%, with the Visa analysis applying the same non‑inflation‑adjusted lens and exclusions for autos, gasoline and restaurants.
E‑commerce leads the charge
Both groups agree that online shopping continued to outpace total sales growth. Mastercard’s findings show e‑commerce up 7.4%, outpacing in‑store gains of 2.9%. Visa’s data mirror the trend, with online retail rising 7.8% over the same period.
Shoppers often moved between channels to maximize promotions and convenience, underscoring a lasting shift toward omnichannel behavior.
AI gains momentum in bargain hunting
AI played a notable role in discovery, price comparison and offers interaction, according to the reports. A senior executive noted that AI enabled more informed and purposeful spending, while retailers used AI to tailor recommendations and sharpen stock management.
Industry tracking also highlights how AI tools helped consumers complete purchases during peak shopping days. In a later snapshot, roughly half of online shoppers relied on conversational AI to finalize Black Friday transactions, with Gen Z showing even higher usage, roughly two‑thirds.
Key takeaways for shoppers and retailers
Analysts say early promotions, convenience and cross‑channel shopping together fueled the holiday results. The data also point to a future where AI integration deepens,potentially making shopping more seamless and personalized while helping retailers optimize inventory and promotions.
At a glance: the numbers in one table
| Metric | Mastercard SpendingPulse | Period | Visa Consulting & Analytics | Period |
|---|---|---|---|---|
| Retail ex‑auto growth | +3.9% | Nov 1 – Dec 21 | +4.2% | Nov 1 – Dec 20 |
| E‑commerce growth | +7.4% | – | +7.8% | – |
| In‑store growth | +2.9% | – | – | – |
| Online share of Black Friday shoppers using AI | – | – | 50% overall; 66% Gen Z | – |
| Mobile/PC purchases on Black Friday | – | – | – | 77% of shoppers |
Context and what it means next
Industry observers say the season’s results reflect a resilient consumer, willing to shop early, seek promotions and blend online and offline channels for convenience. The AI component points to a longer trend: technology aiding discovery, comparison and decision‑making, while retailers invest in smarter inventory and personalized experiences.
Two questions for readers
How have AI tools changed your holiday shopping approach this year? Do you expect AI to influence your shopping decisions in the next season?
What promotion or shopping channel do you value most when balancing price and convenience, and why?
Note: All figures are presented without inflation adjustments, and exclude certain categories as noted by the researchers.
Share your thoughts in the comments below and tell us how you plan to navigate next season’s deals.
Holiday Spending Hits Record Levels in 2025
Holiday Spending Hits Record Levels in 2025
the National Retail Federation (NRF) reports that total U.S. holiday sales are projected to exceed $1.2 trillion, a 6 % increase over 2024. key drivers include:
- higher discretionary income – real wages rose 4 % YoY, according to the Bureau of Economic Analysis.
- Extended shopping season – early‑November promotions and post‑Christmas sales now capture 20 % of total spend.
- AI‑enhanced price discovery – shoppers using AI price‑tracking tools saved an average of $325 per household (Adobe Analytics, Q4 2025).
Omnichannel Shopping: How consumers Seamlessly Switch Between Online and In‑Store
Retailers are seeing a 35 % rise in “click‑and‑collect” orders compared with 2023. The most common pathways:
- Online → In‑Store – Consumers browse on mobile, then visit brick‑and‑mortar for instant fulfillment.
- In‑Store → Online – QR codes and in‑aisle tablets direct shoppers to product pages for home delivery.
- Social‑Media‑Driven – Instagram Shopping and TikTok “Shop Now” links accounted for 12 % of holiday transactions (eMarketer, 2025).
AI‑Powered Deal Hunting: Tools and Technologies Shaping the Season
| AI Tool | Core Function | Holiday Impact |
|---|---|---|
| Dynamic Pricing Engines (e.g., Revionics) | Real‑time price adjustments based on demand, inventory, competitor data | Boosted average basket size by 4 % |
| Chat‑Based Shopping Assistants (Shopify’s “Kit”, walmart’s “Ask Sam”) | Conversational recommendations, coupon submission | 22 % of users reported finding “better deals” than manual searches |
| Visual Search & AR (Pinterest Lens, Sephora Virtual Artist) | Identify products from images, preview in real‑world settings | Increased conversion rates for fashion & cosmetics by 8 % |
| Voice Commerce Platforms (Amazon Alexa, Google Assistant) | Hands‑free product queries, re‑ordering, price alerts | Holiday voice sales up 15 % YoY (IDC, 2025) |
Real‑World Retail case Studies
- Walmart‘s AI‑Driven Price Matching
Walmart integrated an AI engine that scans competitor sites every 15 seconds.When a lower price is detected, the system automatically triggers a match notification to the shopper’s app, resulting in a $45 billion savings pool for users during the 2025 holiday period.
- Target’s Personalized Holiday Promotions
Using Salesforce Marketing Cloud AI, Target delivered hyper‑targeted coupon bundles based on past purchase patterns and current browsing behavior. The campaign generated a 19 % uplift in coupon redemption and a 6 % increase in average order value (AOV).
- Amazon’s Voice‑first Shopping Surge
Alexa’s “Deal Whisperer” feature learns a user’s price‑sensitivity and quietly whispers flash‑sale alerts. In Q4 2025, voice‑initiated orders grew from 3 % to 7 % of total Amazon sales, with an average discount of 18 %.
Benefits of Blending Channels and AI for Shoppers
- Instant Price Comparison – AI crawlers aggregate prices across hundreds of sites in real time.
- personalized Savings – Machine‑learning models predict the best discount codes for each shopper.
- Seamless Fulfillment – Omnichannel inventory visibility reduces out‑of‑stock frustration.
- Time Efficiency – Automated deal alerts cut research time by up to 70 % (Forrester, 2025).
Practical Tips to Maximize Holiday Savings with AI
- Enable Price‑Tracking Extensions – Tools like Honey, Capital One Shopping, and Keepa send push notifications when a product drops below your target price.
- Leverage Voice Assistants – Ask Alexa or Google Assistant “What are today’s Black Friday deals?” and enable “Deal Alerts” in the app settings.
- Combine Click‑and‑Collect with Loyalty Rewards – Use retailer apps to reserve in‑store pickup; many chains double loyalty points for hybrid orders.
- Explore AI‑Curated Gift Guides – Platforms such as pinterest’s “Shopping Feed” use visual AI to suggest gifts based on style preferences.
- Set Budget Rules in AI Wallets – Apps like Mint and PayPal’s “Spend Tracker” use predictive AI to warn you if a planned purchase exceeds your holiday budget.
Future Outlook: What Next‑Gen AI Could Mean for Holiday retail
- Generative Shopping Agents – By 2026, large‑language models capable of drafting personalized shopping lists and auto‑filling checkout forms will enter mainstream retail platforms.
- Predictive Stock‑out Alerts – AI will forecast low‑inventory events a week in advance,prompting pre‑order options that keep shoppers in the buying funnel.
- hyper‑Localized Promotions – Edge‑computing AI will deliver micro‑targeted coupons based on real‑time foot traffic data from smart city sensors.
These emerging capabilities suggest that the convergence of omnichannel shopping and AI will continue to lift holiday spend, while giving consumers unprecedented control over price, convenience, and personalization.
