Helpful Experiences That Lift Holiday Revenue

The holiday shopping season is a major event for retail and generates a significant portion of annual revenue in the space of a few months.

With U.S. holiday sales expected to reach over $975 billion in 2025, a 4% year-over-year increase, according to the National Retail Federation (NRF), retailers aiming to capture a large proportion of those festive dollars will be closely monitoring consumer shopping trends and mapping their strategies to market demand.

A season of smart spending

While the news that some shoppers are preparing to spend more this season will undoubtably come as welcome news to retailers, it should be treated with caution, as much of that spending reflects higher prices, not higher confidence, according to Accenture. More than one-third (36%) of consumers anticipate spending more this holiday season due to the cost of everything going up.

Meanwhile, 46% of retail executives told Accenture that the reasons for higher prices this year compared to last, is due to tariffs.

With many household budgets feeling squeezed, it won’t be entirely surprising that consumers will likely be compelled to prioritize value and shop around for deals. Of those consumers spending more due to prices going up, 44% plan to buy items in advance to get a better price, and 41% plan to shop around, look for sales and promotions and compare prices while holiday shopping.

This creates a clear opportunity for retailers to position themselves as value partners, offering genuine deals, transparent pricing, and clear value propositions that will appeal to these shoppers. This isn’t the time for gimmicky discounts. Consumers are doing their homework, and they’re looking for retailers who help them spend their money wisely.

In some cases, deal-seeking tactics are backfiring, as consumers encounter a confusing barrage of offers and promotions. A retailer that can turn the holiday rush into an enjoyable and smooth experience can drive revenues and earn loyalty without the need for deep discounts and promotional ploys.

Turning shopper stress into retail success

As holiday shopping gets underway, “shopper stress,” is very much being felt and could derail sales this season if left unchecked. More than eight in 10 (85%) of consumers report that purchasing holiday gifts can be so overwhelming and frustrating that they abandoned their shopping carts entirely. That figure rises among younger generations, with 89% Gen Z and 91% Millennials. The culprit? Too many choices, advertising overload, and uncertainty about making the right purchase decisions.

Shoppers aren’t less interested in holiday shopping, they’re drowning in options and choices, and they need help and guidance. When more than three-quarters of consumers saying they’re overwhelmed by too many options, and 76% worry about making the right decision when buying gifts, there’s a clear opening for retailers prepared to address and simplify the experience.

Don’t overlook retail workers

There is also the ripple effects shopper stress can have on the very people required to deliver the season, the retail frontline worker. Often the face of the brand in-store, they take on shoppers’ stress, live. One in four often feels exhausted after a difficult customer conversation, yet they still need to muster the energy for the next person through the door.

But when stores get busy and stress levels rise, even the best store layout or ad campaign can fall flat if a customer is greeted by a tired or disengaged associate.

Training beyond the basics can help. In fact, Accenture’s research has found that associates are asking for more training, which translates into better experiences for the customer and an improved resume for the worker —especially if the training involves using gen AI tools.

Gen AI, this year’s ‘holiday helper’

In the space of a year, almost two-thirds of consumers report using gen AI tools, nearly double the number from 2024. Eight in 10 consumers plan to use these tools specifically for holiday shopping this season.

As shoppers seek personalized advice and curated product suggestions, it’s easy to see how the conversational nature of gen AI technology —where people can ask, and fine-tune questions —is more than a tool for many. It’s almost a friend. A guide-by-the-side of discovery and decision-making.

As they turn their attention to holiday shopping, the top reasons 52% of consumers plan to use gen AI is to track price drops and summarizing product reviews. Other practical shopping tasks consumers plan to use gen AI for include, creating shortlists of places to shop (51%), and getting help when unsure what to buy (49%).

Calling gen AI to the shop floor

Gen AI tools are not going unnoticed by frontline retail workers, with 46% reporting that they have observed customers using them in-store.

While the growing comfort and intuitive nature of gen AI appears to be establishing itself as a natural part of consumers’ daily routines, bringing it into stores requires serious behind-the-scenes work to upgrade systems, rethink processes, and train teams.

It’s not easy. Many retailers are still modernizing core platforms like cloud and cybersecurity, which can slow AI adoption. Then there’s siloed teams and disconnected workflows, that can make progress even harder.

But with the right tech and skills, retailers can unlock real impact—for their business and their people by making frontline roles more rewarding.

It’s what European electronics retailer MediaMarktSaturn is exploring with MyBuddy, a voice-enabled AI agent and personalized virtual assistant for its store employees. Designed to provide real-time information and support during customer interactions via headsets, it lets workers quickly answer customers’ questions about even the smallest details, helping them purchase items with confidence while minimizing downtime.

Turning seasonal spending into shared success

The 2025 holiday season won’t be without challenges, but retailers who offer transparent pricing, invest in staff expertise and leverage technology will thrive. With thoughtful use, gen AI can deliver on that promise—supporting a season that rewards consumers, employees and organizations alike.