Holiday shopping is underway, and consumers are doing the math before they check out. In SMG’s latest studies, 47% of shoppers in both the U.S. and the UK said they plan to spend less on holiday gifts this year. Most expect things to get pricier, too: 72% of U.S. shoppers and 77% of UK shoppers think prices will rise over the next six months. And in the UK, the share of shoppers planning to cut back on Christmas gifts is up 6.6 percentage points from 2025, a statistically significant increase.
For most shoppers who are cutting back, that means hunting for deals first, then trimming the gift list or shifting to discount stores. For retailers, that points to a clear job this season: make value easy to see and easy to trust.
Make value easy to see
When budgets get tight, deals are where most shoppers look first. Among UK consumers planning to cut back, 54% say they’ll look for vouchers, deals, and promotions, and 58% of U.S. shoppers who are backing off say the same. UK shoppers are trimming their lists, too. Nearly half (46%) of those cutting back plan to buy gifts for fewer people, and 39% expect to shop more at discount or value retailers—up 4 percentage points from last year.
Good deals rank first for every type of shopper in our research, whether they shop mostly online, in store, or a mix of both. So it pays to get the basics right: clear pricing and promotions shoppers can understand at a glance. Quality still counts, though, especially for online and hybrid shoppers who can’t pick an item up and look it over. Detailed product information, reviews, and good photos can help answer their questions before they have to ask and cut the digital friction that keeps them from checking out.
Expect shoppers to move between channels
Plenty of shoppers won’t pick just one way to shop this year. In the U.S., 60% plan to split their gift shopping between online and in-store purchases, and 49% of UK shoppers say they’ll do the same. Many are getting an early start as well, with more than 60% of U.S. shoppers hoping to begin before Black Friday and 78% of UK shoppers planning to start by Black Friday itself.
With all that variation, creating a connected experience is worth the effort. When prices, product information, promotions, and availability line up across channels, shoppers can move from a website to a store without starting over. Gift guides organized by recipient, interest, or budget help, too. They’re especially useful for hybrid shoppers, who typically plan to buy across more gift categories than people who stick to one channel.
Keep the in-store experience ready for the rush
Once shoppers are in the store, it’s all about finding the right gift. UK consumers who plan to shop mostly in store are more likely than online shoppers to value gift variety (57% versus 50%) and being able to find what they need easily (56% versus 48%). Clear signage and easy-to-spot employees can save everyone time when the aisles get busy.
SMG’s U.S. retail benchmark data shows that cleanliness and the availability of staff assistance have historically seen the biggest seasonal drops in customer satisfaction. From October to December 2025, satisfaction with cleanliness fell 1.9 percentage points, and satisfaction with staff assistance fell 1.6 points. Store leaders can get ahead of those dips by reinforcing cleaning routines, making it easy for shoppers to find help, and giving frontline teams a quick way to flag what’s slipping.
Shoppers may be spending more carefully this season, but they still want gifts that feel right. Retailers that make value clear and help people find what they came for can make the holidays a little easier for everyone—shoppers and store teams alike.
Want to know how your stores are holding up this holiday season? See how SMG helps retailers turn customer and employee feedback into better in-store and online experiences, or request a demo.
