The Top Retail Trends for the 2025 Holiday Season
August 19, 2025
With retailers already gearing up for 2025 holiday shopping, Sezzle’s cofounder Paul Paradis is predicting a season filled with value-driven spending, expanded mobile e-commerce and a continued surge in spending around Black Friday and Cyber Monday sales.
A 2025 report by McKinsey looking at the state of consumers found that sentiment remains worse than it was at the beginning of 2020. Nineteen percent of consumers globally surveyed said they plan to cut back on nondiscretionary spending categories but will be splurging on the discretionary sectors.
From budget-conscious shoppers to alternative payments due to economic uncertainties, Paradis sat down with Fairchild Studio to share Sezzle’s 2025 holiday retail forecast.
Trend 1: Budget-conscious Shoppers Driving Holiday Spending
Everyone’s concerned about the economy. Inflation fatigue, repayment for student loans starting again and tariff uncertainties — as well as the never-ending rise in the cost of living — are keeping consumers wary. Shoppers will continue to be more value-driven and selective in how or what they’re spending on.
Sezzle’s July 2025 survey polled more than 1,070 people, with 22 percent saying they plan to spend more this holiday season, while 47 percent of shoppers are concerned about rising prices. Despite an intent to spend money, Paradis said that with tariffs increasing the costs of everyday goods, intentional spending and stretching their dollars are paramount for consumers.
For retailers, Paradis said that racing to the bottom on pricing might not be necessary. Instead, he recommends adjusting strategies to serve their value-conscious shoppers that increase affordability without sacrificing their revenue.
“Offering flexible payments is a proven strategy — in fact, 78 percent of Sezzle users said having more time to pay impacts their holiday shopping decisions,” Paradis said. “According to Adobe’s 2024 holiday forecast report, buy now, pay later users spent an average of $150 more than non-BNPL users during the holiday season, it’s a win-win. This is how you preserve margin while expanding access. By giving shoppers more time to pay, we empower them to say ‘yes’ to holiday purchases without the burden of revolving credit debt.”
With payment flexibility playing a critical role in boosting holiday sales, Sezzle is rolling out limited-time holiday incentives for retailers who launch ahead of Black Friday.
Trend 2: Holiday Shopping Starts Early but Black Friday Remains
Retailers are continuing to practice the “October creep” of displaying and promoting end-of-year holiday items even as early as the end of summer. Sezzle said that shoppers are spreading out their spending to manage their budgets and avoid last-minute stress, thus prompting brands to launch promotions earlier than ever. But Black Friday is still a priority.
Sezzle’s survey found that shoppers are kicking off their holiday spending earlier than ever — 20 percent started in July and 38 percent are looking to Labor Day sales.
Paradis cites the desire to “lock in the best prices” before the tariffs hit, alongside shoppers looking to allocate their spending over a longer period.
Deloitte’s 2025 U.S. Retail Industry Outlook echoed these findings; shoppers across all demographic groups are switching to more affordable brands and discount retailers — they’re seeking out private labels or dupe products and centering their purchases around promotional periods such as Black Friday and Cyber Monday.
“We expect Black Friday, Cyber Monday to remain a powerful anchor of the holiday shopping season,” Paradis said. “In 2024, Sezzle saw a 36 percent year-over-year increase in Black Friday Cyber Monday volume. I believe that momentum is likely to continue. With 73 percent of shoppers planning to participate in Black Friday this year and online sales reaching $10.8 billion last year, all indicators point to another record-setting season. We expect even greater adoption of flexible payments and mobile commerce to fuel this growth.”
Trend 3: Mobile E-commerce Takes Precedence
In a digital-first age, mobile phones have become major disruptors as the primary drivers in research, product discovery, comparing prices and sharing selections online in one place.
Most notably, large retailers with $1 billion or more in annual revenue in 2024 saw shoppers using their mobile devices more than ever — accounting for nearly 53 percent of online sales. The opportunity to grow in revenue is vast — as mobile spending is seen as a major player in driving impulse shopping.
Paradis said mobile e-commerce offers consumers “convenience, speed and personalization,” all major drivers for digital-native shoppers. Sezzle said that last year, 69 percent of Black Friday purchases were made via mobile phones.
With its app, the company has created a marketplace with wish lists, price comparisons, millions of products and seamless checkout journeys to provide consumers with a holiday marketplace, all in the palm of their hand.
“Discovery and frictionless checkout are transforming mobile into the dominant shopping channel,” Paradis said. “Platforms that offer personalized product feeds, price comparisons and one-click payments reduce barriers and enhance the shopping experience. Our app and features like express checkout integrate both discovery and ease — a winning combo for time-strapped, deal-hunting consumers.”
Trend 4: Shoppers Are Expecting More Than Discounts
Shoppers’ expectations continue to be higher than ever before. Consumers aren’t just looking for the hottest deal; they’re looking for convenience, exclusive and loyalty rewards, payment flexibility and ease of checkout.
Previous WWD reporting found that in 2025, 74 percent of consumers expect brands to provide an even more personalized shopping experience and 66 percent expect brands to make them feel “valued and understood.”
As younger shoppers look to be more financially savvy and value-educated, given the economic woes, the company launched its in-app financial literacy tool, Money IQ.
As for retailers, Paradis said that consumers are valuing convenience and rewards. He points to enhanced loyalty programs for top spenders, bundling low-priced items into gift sets and creating reminders or push notifications to highlight shipping deadlines, discounts and product launches to simplify the shopping experience.
Consumers surveyed agreed that managing their cash flow is more important than ever. Having more time to pay with flexible payment options, such as BNPL, is one key expectation.
A 2025 JD Power Survey found that Generation Z used BNPL over credit cards, especially during the holiday season, as they’ve become attractive alternatives to credit cards — Paradis noted that this indicates there’s a strong interest in avoiding debt. PYMNTS’ data also showed that 43 percent of consumers bail on purchases without BNPL options.
“We help brands meet customers where they are — with flexible, interest-free payments and seamless integration into omnichannel checkout experiences. And it works. This isn’t just about capturing holiday spend — it’s about building brand affinity and repeat customers long after the season ends,” concluded Paradis.