Looking into 2025: Shopper predictions for the new year

It’s a new year, but we can expect familiar shopping behaviors from consumers. With a solid Holiday 2024 shopping season in the books, it’s time to look into the crystal ball for 2025. With overarching uncertainty likely to persist – given continued frustrations with elevated prices as well as a new political administration – expect consumers to rely on familiar behaviors when spending in the new year. Read on for three of our predictions, based on recent consumer research insights from Bread Financial’s annual Holiday Hindsight survey.

Motivated by sales
With 87% of holiday shoppers indicating that inflation impacted their holiday purchasing in 2024 (up from 84% in holiday 2023), expect smart-shopping strategies, like watching for price discounts and shopping major sales events, to prevail in 2025.

Smart-shopping actions taken by holiday shoppers

Engaging with a variety of retailers
While superstores continued as the top holiday destination, shoppers browsed a wider variety of retailers this year, including off-price and category specialists. This trend could continue for 2025 as shoppers seek deals and differentiated products that entice them to spend.

Where the holiday shoppers purchased, select retailer types shown

Relying on debit cards
Cost-conscious shoppers relied on debit cards for holiday purchases, seemingly at the expense of bank-branded credit cards. However, use of retailer credit cards and pay-over-time were consistent as shoppers leveraged exclusive rewards and favorable financing terms. Similar payment appetite could persist in the new year.

Holiday shopper payment types¹, select payment types shown

Key takeaway: Closing the sale in 2025
While value-driven shoppers continue to watch how they spend given uncertainties, they still exhibit a willingness to spend – thanks at least in part to stability of the employment environment.² The new year is likely to present its own challenges to retailers, but those who deliver clear and compelling value propositions, driven by differentiated offerings and governed by customer-centric mindsets, will likely win over shoppers this year – and beyond.

Source: Bread Financial Holiday Hindsight surveys, Jan. 2025 (Holiday 2024) and Jan. 2024 (Holiday 2023)
1 Read as: 61% of shoppers used a debit card for holiday purchases this year, up from 50% for holiday 2023.
2 The U.S. unemployment rate remained historically low at 4.1% for December 2024, via BLS.