Holiday Spending to Surge Despite Financial Pressures, ICSC Survey…

Event summary

ICSC forecasts U.S. holiday retail sales to grow 4.3%–4.9%, reaching $1.7T in 2026.
88% of U.S. adults (237M people) plan to buy holiday gifts, with 78% spending the same or more than last year.
49% of consumers expect to borrow money to cover holiday purchases, while 23% anticipate paying for 2026 gifts into 2027.
58% of shoppers plan to try new brands, and 52% will shop at unfamiliar retailers.
61% of holiday shoppers intend to use AI tools for price comparisons and research.

The big picture

ICSC’s survey highlights a paradox in consumer behavior: despite financial strain, shoppers are committed to holiday spending, forcing retailers to balance value propositions with experiential offerings. The data underscores a broader trend of discerning consumerism, where convenience, social experiences, and AI-driven decision-making are reshaping traditional retail dynamics. With $1.7T in projected holiday sales, the stakes are high for retailers to capture spend without compromising profitability.

What we're watching

Consumer Resilience: Whether shoppers' willingness to prioritize holiday traditions over financial pressures will sustain through 2027.
Retailer Adaptation: How retailers will respond to the shift toward value-conscious shopping and new brand experimentation.
AI Integration: The pace at which AI tools become integral to holiday shopping, influencing price comparisons and product research.