A few weeks ago, we discussed a report about the positive outlook for online sales this holiday season. To build on this base of knowledge, Intuit QuickBooks just released its Holiday Shopping Report, revealing consumers’ new shopping behaviors, spending trends insights, and how they’re utilizing AI this year.
Report Highlights
The Holiday Shopping Report reveals holiday sales will increase this year from 2024:
- $263 billion—that’s how much consumers plan to spend on holiday purchases, up 25%
- 47% will fund their holiday purchases by cutting back on other spending, such as groceries and healthcare
Small Business Insights
There’s a lot of good news for small business owners in the report:
- $109 billion of the $263 billion will be spent in small businesses, up 44% from last year
- That’s key for small business owners since 93% of small business owners say holiday sales are critical for their success this year
- The business owners expect holiday sales to contribute 47% of their total yearly revenue, up from 33% in 2024
- 65% believe their holiday revenues will increase this year, and 89% are confident they’ll meet their annual revenue goals
- 68% of small businesses say tariffs have significantly impacted their businesses
- 66% of business owners name “big box retailers” as their “fiercest competitors
- 50% expect increased competition from other small businesses
- Nearly 75% of small businesses, a whopping increase of 147%, plan to use AI this year
- They’ll be joined by consumers who will also be employing AI to find better prices and discounts (64%), find new products (51%), and get personalized recommendations (47%)
Navigating Economic Pressures
Before we get too carried away by the positive outlook, however, small business owners and consumers have some troubling concerns, including tariffs and inflation.
Among consumers:
- 86% are worried that tariffs and inflation will impact their holiday spending
- 51% think they’ll be facing higher prices
- 33% expect shipping and delivery costs will be higher
- 25% think there’ll be fewer promotions and discounts available, still, 72% will be on the hunt for deals, 37% plan to shop early, and 36% will look for more practical, lower-cost gifts
Among small business owners:
68% say tariffs have already had a significant impact on their operations
In response, 32% have raised prices, 30% are internally absorbing the higher costs, and 25% are stocking up on inventory earlier than usual.
To attract holiday shoppers:
- 44% will offer exclusive deals
- 40% plan to increase their advertising and social media outreach
- 37% will emphasize customer service
Simon Worsfold, the Head of Data Communications for Intuit QuickBooks, says to draw holiday shoppers to their companies, small business owners should leverage digital and AI-powered tools to tailor their marketing to target consumer interest in shopping small, prepare inventory to meet peak shopping moments, and streamline the manual backend work so they can focus on managing the front end of their business.”
Next week, I’ll share advice and tips about capturing consumer attention this holiday season.
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. You can find her on Twitter @Rieva, Bluesky @Rieva.bsky.social, and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
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