![\"Retail](\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\")
<\/a><\/p>\n<\/p>\n
AI already has affected shopping habits for large numbers of consumers, and its ability to make hyper-personalized product recommendations \u2014 and also to find the best prices and deals \u2014 will continue to accelerate the technology\u2019s use. According to Salesforce, during the 2025 holiday season AI will drive $260 billion<\/strong> in global online sales as well as $1.6 trillion<\/strong> in in-store sales.<\/p>\n Salesforce\u2019s Caila Schwartz, Director of Consumer Insights and Strategy, shared other key predictions for the coming holiday season, including:<\/p>\n \u201cThis year, there\u2019s a tough economic reality for consumers: a high cost of living and high interest rates,\u201d said Schwartz during a conference call discussing the results. \u201cAdditionally, supply chain challenges, exacerbated by tariffs, are creating more uncertainty for both retailers and shoppers. Consumers are confused about what it will mean in terms of both pricing and availability: Are shelves going to be stocked with what they want, when they want it?\u201d<\/p>\n While there\u2019s certainly evidence that consumers are tightening their belts, with 55%<\/strong> prioritizing essentials, a surprisingly large number \u2014 41%<\/strong> \u2014 of U.S. consumers are optimistic about the current economic climate, compared to 38%<\/strong> in 2024.<\/p>\n \u201cBoth U.S. and global consumers say they\u2019re going back to spending, especially for big events like Amazon Prime Day<\/strong> or the holiday season,\u201d said Schwartz. \u201cIn 2024, the focus was on savings and paying down credit card debt as people tried to get their financial house in order, but in 2025, they\u2019ll be spending on physical goods \u2014 although value will continue to be important.\u201d<\/p>\n Salesforce data indicates that 5%<\/strong> of all shoppers now start<\/strong> their product search with AI chat assistants such as ChatGPT<\/strong>, Perplexity<\/strong> and Grok<\/strong>. Among Gen Z consumers, that number is 10%<\/strong>. Perhaps even more important, 44%<\/strong> of U.S. shoppers trust AI recommendations \u2014 a remarkably high number for a relatively new set of technologies.<\/p>\n In the U.S., the top reason consumers use AI search is to help them compare prices and find the best deals. The number two<\/strong> reason is that these AI tools give the best personalized product recommendations, and third<\/strong>, consumers appreciate AI\u2019s ability to use photos, videos or audio to search.<\/p>\n \u201cThese tools are no longer just helpful add-ons or meme-makers, they\u2019re becoming the bridge between customers and brands, powering a new era of hyper-personalized, real-time shopping experiences,\u201d Schwartz wrote in a recent blog post.<\/p>\n To best position themselves, Schwartz recommended that retailers \u201cevaluate where you\u2019d like your brand to show up when it comes to AI chat assistants. As the chat assistants get more popular, customers will come to expect this kind of personalized one-on-one shopping experience. Drive conversions and loyalty with a\u00a0guided shopping agent\u00a0on your own site that guides shoppers through discovery and provides personalized product recommendations.\u201d<\/p>\n It\u2019s not just potentially higher prices for new items that have many consumers turning to secondhand (17%<\/strong> of consumers are shopping resale to combat tariff volatility); it\u2019s also the fear that tariffs and other supply chain challenges will lead to product shortages during the holiday crunch.<\/p>\n For those products that are available, tariffs will eat away at retailers\u2019 margins if they can\u2019t (or won\u2019t) pass along price increases to the consumer. The squeeze on margins also means fewer discounts and promotions during the holiday season: Salesforce predicts that 2%<\/strong> fewer orders this holiday season will transact with a promotional code compared to 2024.<\/p>\n The majority of consumers that buy secondhand are doing so for economic reasons: 68%<\/strong> say gifting resale helps them save money, while 35%<\/strong> say it promotes sustainability and reduces waste.<\/p>\n Gen Z isn\u2019t alone in liking the benefits of in-store shopping: 79%<\/strong> of all holiday shoppers will visit a brick-and-mortar store at some point during the holiday season. \u201cIn fact, on the most important shopping days of the year shoppers prefer the store,\u201d Schwartz wrote. \u201c51%<\/strong> of shoppers report that they still prefer to shop in-store on Black Friday, up from 31%<\/strong> in 2024. Gen Z is leading that trend with an incredible 65%<\/strong> reporting their in-store preference for the major deal event.\u201d<\/p>\n Among Gen Z, 72%<\/strong> identified the ability to get products immediately as their top reason for in-store shopping, with 42%<\/strong> expressing their appreciation for being able to touch and feel the merchandise prior to purchase, and 28%<\/strong> reporting that it\u2019s easier for them to browse and discover new products in-store.<\/p>\n This doesn\u2019t mean, of course, that retailers and brands can ignore digital commerce; in fact, quite the opposite. \u201cWhile the youngest shoppers prefer to shop in-store, they are the most likely to be discovering and researching across many digital channels,\u201d Schwartz wrote, noting that the average shopping journey now has nine<\/strong> touch points prior to a purchase. \u201cEnable your audience to shop your brand, not your channels, by having a robust\u00a0omnichannel\u00a0strategy.<\/strong> This is not just an advantage, but a necessity to cultivate loyalty and capture market share.\u201d<\/p>\n<\/p><\/div>\n\n
Despite Uncertain Economic Conditions, Many Consumers Remain Optimistic<\/strong><\/h3>\n
AI Shopper Use Cases Continue to Multiply<\/strong><\/h3>\n
Secondhand Becoming Shoppers\u2019 First Choice<\/strong><\/h3>\n
Gen Z Likes Shopping in Stores \u2014 Especially on Black Friday<\/strong><\/h3>\n