Mastercard reports that value-hungry shoppers are driving the 2025 holiday season: loyalty points surge, social commerce gains trust, and Gen Z still prefers physical stores.
As the holiday shopping season accelerates, consumer behavior is being driven by a clear imperative: value for money. According to the “Shopper Snapshot 2025: Holiday Shopping Insights” report released by Mastercard, the focus on price, product quality, and direct discounts is overriding traditional brand sentiment for most buyers.
The data, based on a survey of over 4,000 consumers across the U.S., Canada, the U.K., and the U.A.E., underscores the pressure on retailers to offer tangible savings rather than relying solely on emotive or nostalgic marketing campaigns.
The Discount Imperative
Mastercard found that the hunt for savings is actively dictating consumer purchasing timelines and brand interaction:
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73% of respondents routinely buy an item from their wish list only after it goes on sale.
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71% respond directly to personalized discount codes.
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63% act when faced with limited-time sales windows.
This value-driven approach extends to loyalty programs, with 79% of consumers planning to use rewards points to complete purchases this season. The pursuit of discounts is also proving beneficial for brands seeking to gather customer information, as 66% of respondents reported providing their contact details to receive a holiday discount.
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The Generational Shift: AI and Social Commerce
Younger demographics are embracing technology to both find value and outsource the stress of gift buying.
Generational data shows a significant willingness to delegate shopping tasks to automation: approximately half of Gen Z and millennials would allow artificial intelligence to handle gift purchasing if it meant avoiding holiday stress. Overall, 42% of consumers are already utilizing AI to aid in gift selection.
This reliance on digital discovery is also fostering new trust in emerging channels:
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Social Commerce: 61% of millennials and 57% of Gen Z report increased trust in social commerce platforms.
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Influencer Authority: Notably, 53% of Gen Z consumers and 47% of millennials trust the opinions of social media influencers more than those of their own friends.
Also Read: How Brands Turned Halloween Into a Global Spectacle
The Enduring Power of the Physical Store
Despite the rise of digital tools, physical retail remains a central part of the shopping experience.
A sweeping 90% of all consumers most often frequent brick-and-mortar locations for holiday shopping. Gen Z, often viewed as the most digitally native cohort, leads this trend at a rate of 91%. Physical stores function as inspiration hubs for this group, with 81% reporting that they get gift ideas directly from in-store displays.
E-commerce sites are the second most used channel, utilized by 82% of consumers. Furthermore, in a nod to economic awareness, approximately two-thirds of Gen Z and millennial consumers plan to increase or maintain their purchasing of second-hand gifts this season.
Despite economic headwinds and a focus on value, consumers expressed general optimism, with the top emotions surrounding holiday shopping being excitement (45%) and a sense of connection (28%).
