Holiday shoppers plan to spend an average of $783 this season, up 5% from what they say they spent last year, according to KPMG’s Consumer Pulse survey released October 21. More than a third plan to use AI shopping tools to compare prices, and debit cards have overtaken credit cards as the preferred way to pay.
Key Takeaways
- KPMG surveyed 2,005 U.S. consumers from September 10 to 25, 2026.
- Thirty-seven percent of consumers plan to use AI to compare prices across retailers, and 33% plan to use AI to find discounts or promotions.
- Debit cards are now the preferred payment method for 73% of consumers, up from 65% last year, when credit cards held the top spot.
- Fifty-seven percent plan to buy gifts for themselves, with planned self-spending averaging $354, up 18% from what consumers report spending on themselves last year.
- Consumers expect to spend an average of $798 on holiday travel, up 8% from 2025, a separate measure from holiday shopping.
- Nearly one in four buy-now-pay-later users expect it to fund more than 21% of their holiday purchases.
Holiday Spending Rises, but Shoppers Are Measuring Every Dollar
The headline number points to a larger season. Forty-five percent of consumers plan to spend more on gifts, and the average planned budget of $783 sits 5% above what respondents say they spent in 2025. Because the comparison is between planned spending and self-reported past spending, it reflects intent rather than measured sales.
What stands out in KPMG’s data is how that spending will happen. Shoppers are entering the season willing to spend more, but they are also equipped to check prices across stores in seconds, shifting away from credit and leaning on promotions. The result is a season where demand looks healthy, but margins may face pressure.
AI Shopping Turns Price Comparison Into a Default Habit
AI shopping has moved from novelty to routine for a large share of consumers. According to KPMG, 37% of shoppers plan to use AI tools to compare prices across retailers this season, and 33% plan to use AI to find discounts or promotions.
For retailers, that changes the competitive math. When a shopper can ask an AI assistant to scan multiple stores at once, price gaps become visible instantly, and loyalty built on convenience alone weakens. Duleep Rodrigo, KPMG Americas Sector Leader for Consumer, Retail and Hospitality, said, “The companies that will succeed this holiday season will be the ones using data and analytics to differentiate where consumers will accept higher prices, where brand perception is strongest, and where protecting volume matters most through promotions.”
Debit Card vs Credit Card: Shoppers Shift How They Pay
The payment data reflects the cost of borrowing. With borrowing costs elevated, consumers are moving away from credit cards, which were the preferred payment method in last year’s KPMG survey. Debit cards now lead, preferred by 73% of consumers, up from 65% a year earlier.
The shift suggests many households are choosing to spend money they already have rather than carry balances into the new year. For sellers, a debit-heavy season can mean smaller impulse purchases on credit but steadier spending tied to available cash.
Buy Now, Pay Later Takes a Larger Share for Some Shoppers
Installment payments remain part of the mix. Nearly one in four consumers who use buy now, pay later services expect those services to fund more than 21% of their holiday purchases, according to KPMG.
Self-Gifting Remains a Fixture of Holiday Spending
For the fourth consecutive year, more than half of consumers plan to shop for themselves during the holidays. Fifty-seven percent expect to buy gifts for themselves, with planned self-spending averaging $354, up 18% from what they report spending on themselves last year.
Promotions are a key driver. Among self-gifters, 67% cite treating or rewarding themselves as a primary motivation, and 54% say holiday sales and promotions are pushing those purchases. That gives retailers a clear opening: well-timed deals can convert gift shoppers into buyers for themselves as well.
Holiday Travel Spending Climbs on Longer, Premium Trips
Travel shows a different pattern from goods. Consumers expect to spend an average of $798 on holiday travel, up 8% from 2025, a separate measure from KPMG’s holiday shopping figure. Among those increasing travel budgets, 40% cite longer trips, and 34% point to plans to stay in luxury hotels and resorts. Nearly half of households earning more than $200,000 plan to spend more than $1,000 on holiday travel.
What Retail Trends in 2026 Mean for Small Sellers
The KPMG findings outline a season where value is judged in real time. Small sellers competing against larger retailers face shoppers who can compare prices instantly and who respond strongly to promotions. That raises the importance of clear pricing, visible deals and a reason to buy beyond price, such as service, selection or local convenience.
The data also complements other holiday outlooks, including small businesses expecting $118 billion in holiday spending amid price pressure and uncertainty.
FAQs
How much will Americans spend on the holidays in 2026?
Shoppers expect to spend an average of $783 this holiday season, up 5% from what they say they spent last year, according to KPMG’s Consumer Pulse Holiday 2026 survey.
How are shoppers using AI for holiday shopping?
According to KPMG, 37% of consumers plan to use AI to compare prices across retailers, and 33% plan to use AI to find discounts or promotions this holiday season.
Are consumers using debit or credit cards more this holiday season?
Debit cards now lead as the preferred payment method for 73% of consumers, up from 65% last year, when credit cards were the top choice in KPMG’s survey.
What is self-gifting?
Self-gifting is buying gifts for yourself during the holiday shopping season. KPMG found 57% of consumers plan to self-gift in 2026, with planned self-spending averaging $354.
How was the KPMG Consumer Pulse survey conducted?
The KPMG Consumer Pulse Holiday 2026 survey is based on responses from 2,005 consumers across the U.S., collected from September 10 to 25, 2026.
