Gift giving for loved ones takes priority over economic anxieties as consumers plan to increase their holiday spending by 25%, boosting revenue potential for small businesses this holiday season

Intuit Inc. (NASDAQ:INTU), the global financial technology platform that makes Intuit TurboTax, Credit Karma, QuickBooks, and Mailchimp, today released its annual Intuit QuickBooks Holiday Shopping Report which found that the spirit of giving will be strong this holiday season despite concerns around tariffs and inflation. U.S. consumers plan to spend $263 billion — a 25% increase from 2024 — with nearly half planning to spend more than last year. This increase in spending also extends to small businesses, with 41% of total consumer spending estimated to go towards shopping small, representing a $109 billion opportunity for small businesses and a 44% increase year-over-year.

The findings, based on a recent survey commissioned by Intuit of 6,000 U.S. consumers and 1,000 small business owners, show that while rising costs continue to play a role in how consumers spend their money, gift giving is one area they intend to prioritize this year. Nearly half (47%) of respondents shared they are cutting back in other areas to expand their budget for gifts, including discretionary purchases like dining out and traveling, and even essentials such as groceries and healthcare expenses. This is driven by an undeniable consumer desire to give to family and loved ones this season, with 42% of consumers sharing it is more important than ever, even if it means sacrificing spending on themselves. Research from Intuit Mailchimp's 2025 Holiday Shopping Unwrapped report reinforces this importance, as more than half (52%) of shoppers say their top motivation for gift giving this year is to bring joy to others.

This desire to give back to loved ones and bring joy through gift giving is encouraging news for small businesses this holiday season, which for many, is more than just a busy shopping period, but a time that can be make or break for their annual revenue. Ninety-three percent of business owners surveyed shared that the holiday season is vital to their success this year. Overall, respondents expect sales from the season to contribute nearly half (47%) of their total yearly revenue, up from 33% in 2024. Despite the stakes, small businesses are going into the season with optimism. Sixty-five percent anticipate more revenue in holiday sales compared to last year, and more than half (57%) say their yearly revenue leading up to the holiday season has increased year-over-year. This optimism extends to their projections for consumer spending, as 89% of businesses surveyed shared they are confident that their customers will spend enough to help them meet their yearly revenue goals.

"For small businesses like ours, the holiday season is when everything comes together. It's not just our busiest time of year, it's when we see the impact of our community's support the most," said Liz Pham, owner of Bows Arts. "With more customers prioritizing gifts and gatherings, we're optimistic about finishing the year strong. Tools like QuickBooks and Mailchimp help us stay organized and focus on what matters most: creating a great experience for our customers while growing our business."

Consumers and Businesses Navigate Economic Pressures Together

While consumers and small businesses are entering the holiday season with an optimistic outlook, economic factors like tariffs and inflation still have an influence on their approach to navigating the season. For consumers, 86% of those surveyed shared they're concerned about tariffs and inflation impacting their holiday spending, and more than half (51%) expect to encounter higher prices. A third (33%) of those surveyed also expect increased shipping and delivery costs, and a quarter (25%) anticipate fewer promotions and discounts when shopping for gifts this year. To tackle these potential impacts, shoppers are focused on hunting for deals (72%), shopping early (37%), and finding practical, lower cost gifts (36%).

Similarly, 68% of small businesses say tariffs have had a significant impact on their operations, leading some to increase prices (32%), absorb higher costs internally (30%), and stock up on inventory earlier than usual (25%). To counteract that pressure, businesses plan to rely on proven tactics: 44% will offer exclusive deals, 40% will increase advertising and social media outreach, and 37% will emphasize customer service to win and keep holiday shoppers.

"With economic factors like tariffs and inflation impacting how consumers are managing their spending, small businesses need to be savvy when considering how they can best attract customers and maximize their sales this holiday season," said Simon Worsfold, Head of Data Communications, Intuit QuickBooks. "With almost half of U.S. consumers prioritizing shopping small this season, small business owners can capitalize on this over the next few months by leveraging digital and AI-powered tools to tailor their marketing to target this consumer interest, prepare their inventory to meet peak shopping moments, and streamline the manual backend work so they can focus on managing the front end of their business."

Tips to Capture Consumer Interest in Shopping Small This Holiday Season

From leveraging AI-powered tools to streamline operations, to tailoring marketing campaigns to meet shoppers in the right place at the right time, here are a few tips from QuickBooks and Mailchimp to help set up small businesses for success as consumers look to them for their gift giving needs.

Connect with shoppers through AI search: AI has become a part of everyday life for many, and the holiday season is no different, as the number of consumers who plan to use AI tools to help with their gift buying has increased 70% from last year. They say the main benefits of using AI are to find better prices and discounts (64%), find new products (51%), and get personalized recommendations (47%). Small businesses should ensure they're tailoring their search engine optimization (SEO) and generative engine optimization (GEO) strategy to increase the likelihood of appearing in AI-driven search results.
Be intentional when activating AI in your business: Small businesses are also dramatically increasing their use of AI in their business operations, with nearly three-quarters (74%) planning to implement it during the holiday season compared to just 30% last year, representing a 147% increase. As 42% of these businesses report that they will be utilizing AI during the holiday season for the first time, ensuring they are using the right tools is key. Businesses should look for AI-powered tools that do the work for them, from auto-generating invoices to scaling their ability to send personalized email and messaging campaigns, instead of ones that might simply provide tips, but not assist in completing key tasks.
Prioritize mobile, but don't forget about in-store shoppers: Online shopping continues to dominate the holidays, especially on mobile, as two-thirds (65%) of consumers say they'll use their phones to browse, compare prices, and buy gifts, with the biggest draws being easy mobile checkout (51%), mobile-friendly websites (47%), and retailer apps with exclusive deals (43%). But that doesn't mean in-store shopping is a thing of the past. More than half of shoppers (52%) plan to shop both online and in store, so small businesses should ensure they are taking an omnichannel approach to their sales and marketing strategies.
Leverage the marketing channels that matter most to shoppers: More than half (58%) of consumers surveyed shared that receiving coupon codes is the tactic most likely to get them to make a purchase. Reminders about sales or promotions sent via email (40%) and SMS (31%) are also influential in encouraging them to make a purchase, more so than even ads on social media or recommendations from influencers. Small businesses should ensure they're implementing a personalized, omnichannel marketing strategy across email and SMS to alert customers to specials deals and promotions, and sending timely reminders to help close the deal.
Plan around peak shopping moments: The holiday shopping rush still peaks in November, when 45% of consumers expect to do most of their buying. Thanksgiving is a key shopping moment within that timeframe, as Mailchimp's Holiday Shopping Unwrapped report revealed that 71% of U.S. consumers make a purchase on this day. But many are starting even earlier, with nearly one in three (30%) planning to start their holiday shopping in October. To meet the demands of these busy shopping moments, small businesses should leverage tools that can easily track their inventory and sales to help increase their sales potential.

To learn more about how businesses can optimize their holiday sales and implement the right tools to help their business grow and thrive, visit https://quickbooks.intuit.com/r/holidays/.

About Intuit

Intuit is the global financial technology platform that powers prosperity for the people and communities we serve. With approximately 100 million customers worldwide using products such as TurboTax, Credit Karma, QuickBooks, and Mailchimp, we believe that everyone should have the opportunity to prosper. We never stop working to find new, innovative ways to make that possible. Please visit us at Intuit.com and find us on social for the latest information about Intuit and our products and services.

Sample and methodology

Intuit QuickBooks Holiday Shopping Consumer Survey 2025

Intuit QuickBooks commissioned an online survey, completed in September 2025, of 6,000 U.S. consumers (adults aged 18+) who said they planned to participate in the 2025 holiday season to some degree (for example, by shopping, celebrating, or gift-giving). Small business consumer spending estimates are based on a weighted average percentage of each respondent's planned holiday spend at small businesses, multiplied by the equivalent number of U.S. adults based on the latest available U.S. Census Bureau data.

To ensure the findings are as representative as possible, survey results have been re-weighted using post-stratification based on U.S. Census data. Percentages are rounded to the nearest decimal place, so values in charts and graphics may not always sum to exactly 100%. Responses to multiple-choice survey questions are shown as a percentage of the number of respondents, not the total number of responses, so will always sum to more than 100%. Respondents received remuneration.

Intuit QuickBooks Holiday Shopping Small Business Owner Survey 2025

Intuit QuickBooks also commissioned an online survey, completed in September 2025, of 1,000 U.S. adults (aged 18+) who either own, manage, or help make decisions for a small business (defined here as 0–99 employees). The sample includes:

Business owners (sole or with partners): 543 respondents
Self-employed, freelancers, or independent contractors: 144 respondents
Business managers/decision-makers who are not owners: 313 respondents

As with the consumer survey, results were re-weighted for representativeness and rounded to the nearest decimal place. Percentages in charts and graphics may not add to exactly 100%. Responses to multiple-choice questions are shown as a percentage of respondents, not total responses. Respondents received remuneration.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251015020004/en/

Intuit QuickBooks:

Jaymie Sinlao

Jaymie_Sinlao@intuit.com

Intuit Report Reveals Consumer Holiday Spending to Reach $263 Billion, with an Estimated $109 Billion Opportunity in Revenue for Small Businesses