TCF POST Report
CHARLOTTE, N.C. — Inflation is changing how consumers approach holiday purchases of apparel, footwear and other discretionary goods, with shoppers increasingly using technology to compare prices, find promotions and maximize value rather than simply cutting spending.
A new Smart Shopper Study from AI shopping companion Minty found that 91% of consumers are concerned about inflation, while 79% expect to spend the same or more than last year during the holiday season. At the same time, 96% plan to use at least one strategy to stretch their budgets, highlighting a more value-conscious but not necessarily lower-spending consumer.
For fashion, apparel and footwear retailers, the findings point to a holiday shopper increasingly unwilling to purchase without first checking whether a better price, promotion or saving opportunity is available.
AI becomes a fashion shopping tool
AI is emerging as an important part of this value-seeking behavior. Fifty-four percent of shoppers plan to use AI for holiday shopping, while 44% say they are using AI more for shopping than they did last year.
Among those using AI, 52% use it to find the best price, 45% to discover gift ideas and 38% to compare products, brands or retailers. These functions are particularly relevant to fashion shoppers navigating a wide range of brands, styles, price points and promotional offers during the holiday season.
AI is also being used to reduce the time required to shop. Sixty percent of consumers expect AI to save them time, with 59% anticipating savings of up to 25 hours.
For apparel and footwear brands, the trend increases the importance of price transparency, product discoverability and clear differentiation as consumers increasingly use digital tools before deciding where and what to buy.
Cashback and savings tools gain traction
Cashback and savings platforms are another major component of the emerging “moneymaxxing” trend—the practice of combining multiple tools and strategies to maximize the value of each purchase.
About 67% of consumers plan to use cashback and savings apps or browser extensions during the holiday season. Shoppers are particularly interested in high cashback rates, automatic savings and coupon-finding capabilities.
The research suggests that these consumers are not necessarily reducing their overall purchases. Cashback and savings-tool users intend to spend 30% more than non-users, while nearly half plan to increase their holiday spending, compared with just 13% of non-users.
For fashion retailers, this suggests that promotions and savings mechanisms can help capture spending that might otherwise be deferred or redirected to competitors.
Earlier shopping and greater price scrutiny
Consumers are also beginning their holiday shopping earlier in an effort to capture discounts. More than 25% plan to start before October, while 14% say they are already shopping.
Price and the availability of the best deal are among the strongest factors influencing where consumers shop. Rather than waiting for a single major sale event, shoppers are increasingly monitoring prices and combining multiple savings opportunities throughout the season.
The study found that 42% expect to save between $50 and $200, while another 13% expect to save more than $200 through their shopping strategies.
That behavior could have a significant impact on fashion and footwear retailers, where holiday demand is traditionally shaped by promotional calendars, seasonal markdowns and gift-oriented purchases.
Value, not simply lower spending
The findings point to a holiday consumer who remains willing to spend but has become more deliberate about how that spending is allocated.
For apparel, footwear and fashion brands, the implication is that consumers may continue buying discretionary products if retailers can demonstrate value quickly and make the path to purchase easier. Competitive pricing, targeted promotions, cashback opportunities and AI-enabled product discovery could increasingly influence conversion.
“Holiday shoppers are using AI and cashback to optimize two things they never have enough of during this busy season — money and time,” said Rodney Mason, Chief Marketing Officer of Minty. He added that price-conscious consumers can remain valuable customers, but retailers will increasingly need to prove value quickly, reduce friction and make it easier to find the best deal.
With holiday shoppers combining AI, price comparison, cashback and early purchasing, the fashion retail battleground is increasingly shifting from simply attracting consumers to helping them justify every purchase.
