We Asked 1,000 People How They Shop With AI. Yikes.
TGIF, futurists.Â
As promised, we officially dropped the first phase of our 2025 Holiday AI Shopping Benchmark, a survey of 1,000 US consumers from Gen Z to Gen X. Developed in partnership with Cimulate, this two-part analysis delves into consumers' intent to use generative AI platforms to shop for gifts, and how their experiences will shape actual preferences and future behaviors.Â
If you opened Wednesday’s newsletter, you saw some of the key headlines: that AI is a proven, habitual tool. With the novelty gone, most consumers are using ChatGPT, Perplexity, and Gemini to reduce the heavy cognitive load that typically weighs on them during the holiday season. But here’s where things get exciting: we explored how the value impact at the top and middle of the funnel will translate to shifts in when (and how often) shoppers will visit stores and branded eCommerce sites in the future. Will the ease and transparency of these platforms ultimately affect how users trust them relative to other channels, such as search engines and social media?
Keep in mind that these results are perceived outcomes, meaning what consumers expect will happen after shopping with AI this holiday season. We’ll see if they change their tune once they've crossed off their shopping lists.Â
Dig into our analysis to discover how these new behaviors are driving new opportunities for merchants.
Last-Minute Shopping: The Only Cardio That Matters. The NRF predicts that 63% of consumers will shop on Super Saturday, the last Saturday before Christmas, slightly higher than record numbers from 2022. While most consumers (45%) plan to shop both online and in stores, 29% plan to visit physical locations exclusively. Despite feelings of gloom and doom, or perhaps because of it, consumers plan to keep shopping well into the week after Christmas, when they expect retail sales to be the steepest.
The Deal Where Everyone Pretends to Win. After several months of speculation, TikTok has officially signed a deal to divest its US business to a joint venture controlled by several American investors, including Oracle. The underlying algorithm will still be owned by ByteDance, but the US algo will be retrained with only American user data. Moreover, the new investor entity will determine all new content moderation rules.
‍‍Zales Steals Kendra Scott's Homework, Gets an A. Zales, the jewelry store retailer synonymous with shopping malls, is rethinking its experience for younger consumers. The new store format, called The Edit, will have an elevated design, more open layout, rotating display zones, and a focus on both curation and consultation.
A charm bar and customization studio is eerily reminiscent of the Kendra Scott model, allowing consumers to design for their personal tastes and modes of expression. Four locations have opened across the US, and Zales is measuring success by comparing a control group of 15 stores based on their revenue streams and product mix.
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Pacsunrise. The youth-oriented retailer is expanding its US store footprint for the first time in two decades, adding 20 to 35 new locations over the next three years. CEO Brieane Olson noted that Pacsun’s stores are “cultural touch points” for its core demographic, which treasures community both online and in real life. Most recently, the retailer made its international debut with a location at Dubai’s Mall of the Emirates and a second NYC store in Flatiron.Â
‍81 Grams of Protein, Zero Grams of Dignity. Chipotle is joining the pack of slop bowl QSRs launching special protein-packed menus for the gym bros and fitfluencer girlies. Launching December 23, the menu’s items range from 15 to 81 grams of protein, including tacos, burrito bowls, and a questionable cup of adobo chicken or steak. Because when you’re in a rush, why not shove an overflowing vessel of chicken into your gullet?
Although Chipotle’s latest financial results showed revenue increased 7.5%, the company continues to face macroeconomic headwinds. Operating margin was 15.9%, down from 16.9%, and comp restaurant sales increased by just 0.3%. These results tie into a larger story about consumers’ shift away from slop bowl brands due to their steep prices.
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Cola Cahoots. PepsiCo and Walmart are facing a class action lawsuit alleging that the two companies agreed to preferential wholesale pricing for Pepsi products while forcing other retailers to pay inflated prices. The alleged decade-long price-fixing scheme violates antitrust law and hits end consumers where it hurts most: their wallets.
‍The Sentient Teddy Bear Industrial Complex. China’s AI toy industry is now worth $4B, and we’re wondering whether (when?) the trend is going to make its way to the US. Haivivi is one of 1,500 companies shaping the future of the toy market, giving children the power to interact with their toys as if they’re living beings. Its BubblePal smart device can be placed on any stuffed animal, immediately giving it a voice to co-create stories and have conversations. Another is Chongker, a startup that has created an AI cat that uses voice recognition and cloud-based memories to tailor behavior.
Our Take: As digital culture critic Katherine Dee explored at our VISIONS Summit, China's AI toy boom is commercializing humanity's oldest impulse: animism. We've always loved objects into being: we yelled at printers, thanked Alexa, and raised Tamagotchis. What's changed isn't the depth of our devotion, but the feedback loop monetizing that devotion; all of it powered by AI. This "empathy mining rig," according to Dee, is where lullabies and 3 a.m. despair become training data sold back as subscription tiers. Watch the talk here on YouTube.
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