Consumers plan more gifts, personal rewards, and travel—and look to AI for savings
More spending, more ways to celebrate
Holiday shoppers have more on their lists this year—and not all of it is for someone else. They expect to buy more gifts per person, but they’re also shopping for themselves and devoting more of their budgets to travel, even as they keep a close eye on what those choices cost.
The new KPMG Consumer Pulse Survey finds planned holiday spending up 5 percent to an average of $783, with more consumers expecting to increase their budgets than cut back.
For shoppers budgeting extra per gift recipient, buying additional presents ranks ahead of choosing pricier categories. Consumers are also shopping for themselves, from personal rewards and indulgences to practical upgrades bought during holiday sales. And travel remains a priority, with longer trips and higher-end accommodations helping drive spending among those planning to spend more.
Even with these plans, price pressures haven’t gone away. Inflation remains a leading concern, and with borrowing costs elevated, debit cards now lead credit cards among payment preferences, 73 percent to 69 percent. Consumers are also looking for promotions, comparing retailers, and using AI tools to help find deals.
For retailers and consumer brands, the findings point to opportunities across a wider mix of purchases and occasions as shoppers balance gifts, personal purchases, and experiences against household budgets.
About the survey
The KPMG Consumer Pulse Holiday 2026 survey includes responses from 2,005 consumers across the United States. Fielded September 10–25, 2026, the survey sample is within four percentage points of US Census benchmarks for gender, age, and household income.
Download PDF
Gifts for others—and a few rewards for themselves
For many consumers, bigger holiday gift budgets could translate into a greater number of purchases this season. Among shoppers increasing what they spend per gift recipient, 45 percent plan to buy additional gifts for each person, compared with 32 percent who intend to choose more expensive gift categories. For retailers, that distinction points to potential gains in sales volume, with apparel and gift cards continuing to lead holiday gift selections.
For the fourth consecutive year, more than half of consumers (57 percent) plan to shop for themselves during the holidays. Average spending on those purchases is expected to reach $354, up 18 percent year over year. Treating or rewarding themselves is the leading motivation, cited by 67 percent, while 54 percent see holiday promotions as a reason to buy. Practical purchases also have a place: 37 percent plan to replace or upgrade items they use regularly.
Together, these intentions create opportunities across gifts, personal treats, and everyday products, with holiday promotions helping shoppers accommodate both planned purchases and a few rewards for themselves.
57 percent of consumers plan to shop for themselves this holiday season—with expected spending on self increasing by nearly 18 percent compared to last year
Holiday shopping trends at a glance
Even as holiday budgets rise, cost concerns remain widespread, with 82 percent of consumers worried about inflation. Survey respondents anticipate average monthly spending increases of 27 percent on groceries and 21 percent on gas and maintenance this winter. Against that backdrop, several holiday shopping trends stand out:
- Gift card spending makes the biggest leap. Average planned spending on gift cards and certificates is forecast to reach $185, up $40 from last year—the largest dollar increase among the gift categories surveyed.
- Mass-market stores still lead. Three-quarters of consumers are likely to shop at mass-market retailers, while dollar stores and luxury department stores each gain three percentage points in shopping preference.
- Black Friday remains the biggest draw. Sixty-two percent consider it an important shopping event. Prime Day is the only major sales event to gain ground year over year, edging up from 39 percent to 41 percent.
- Payment preferences are shifting. Debit cards now lead at 73 percent, while reported use of credit cards and cash has fallen below 70 percent, down sharply from the Fall survey. Buy now-pay later use has also declined, although a greater share of respondents report using it for a substantial portion of their purchases.
Payment preferences have shifted since Fall 2026, with debit cards now the most preferred payment method as cash and credit card usage declines
Longer trips and premium stays shape holiday travel spending
Holiday travel is another area where consumers are willing to spend. Average planned travel spending is forecast at $798, up 8 percent from what respondents recall spending on comparable trips last year. Thanksgiving trips are also getting longer: 31 percent of travelers plan to be away for more than five days, compared with 25 percent who took extended trips in 2025. Among consumers expecting to spend more on their next trip, 40 percent cite longer stays, while 34 percent plan to book luxury hotels or resorts and 28 percent expect to visit more expensive international destinations. Those preferences point to opportunities for travel and hospitality businesses to capture additional spending on accommodations and experiences, even as travelers weigh the overall cost of their plans.
23 percent of consumers plan to increase spending on their next trip driven by longer stays and premium travel experiences, while only 6 percent expect to reduce spending
AI helps holiday shoppers compare prices and find deals
AI is emerging as an important tool for consumers researching holiday purchases. Roughly one-third expect to use it to compare prices across retailers, find discounts or promotions, and compare product reviews. Twenty-nine percent also plan to research gift ideas. Price still matters in choosing where to shop: 70 percent cite discounts and sales among their leading retailer-selection criteria, followed by product quality (66 percent) and competitive prices (64 percent). Loyalty has limits, too. Nearly one-third of consumers generally favor retailers they trust but may switch for a significantly better deal. For retailers, AI adds another way for shoppers to weigh competing offers, increasing the importance of visible value, accurate product information, and perhaps even some incentives for loyal customers.
Consumers primarily use AI for holiday shopping to compare prices, while nearly four in ten do not expect to use AI
Health priorities extend to holiday meals and drinks
Health and wellness are playing a role in holiday food and beverage decisions. Nearly one in four consumers (23 percent) currently use or plan to use GLP-1 medications. Among that group, 37 percent expect to spend less on alcohol, 35 percent on dining out, and 27 percent anticipate spending more on groceries. Wellness is also a factor in plans for the new year. Nearly one-third of consumers (32 percent) plan to participate in Dry January, with improving health and well-being (51 percent) and saving money (39 percent) leading their motivations.
For grocery retailers, restaurants, and beverage brands, the findings point to opportunities to accommodate a wider range of food and beverage preferences, both during the holiday season and beyond.
Consumers inclined towards GLP-1 medications expect higher spending on groceries and lower spending on alcohol
KPMG. Make the difference.
KPMG helps Consumer, Retail & Hospitality organizations respond to shifting market dynamics with speed, clarity, and confidence. With deep sector expertise, KPMG brings connected capabilities across strategy, operations, and technology to help clients:
1
2
3
4
5
Across every business function, KPMG helps deliver insights and outcomes that move with the market—and make the difference.
Meet our team
Steps you can take to establish a standout ESG M&A due diligence program:
1
2
3
4
5
6
7
8
9
10