Returns are growing in importance — with both retailers and consumers. To understand how these pressures are shaping the retail landscape, the National Retail Federation (NRF) and Happy Returns, a UPS company, explored both consumer and retailer perspectives and priorities for the returns experience. Key findings include:

Total returns for the retail industry are projected to reach $849.9 billion in 2025.

Those groups are harnessing artificial intelligence for gift ideas and to compare prices this season, a new survey states. While nearly a quarter (23%) of consumers overall are likely to use chatbots and AI tools to shop this holiday season, millennials and Gen Z shoppers are leading the way in using the technology, according to an Epsilon Pulse report. Forty-four percent of millennials and 42% of Gen Z respondents said they are likely to use chatbots and AI tools for holiday purchase inspiration.

Verve has released its [In-app user privacy report 2025](https://www.businessofapps.com/in-app-user-privacy-report/?utmsource=newsannouncement&utmmedium=download&utmcampaign=verve-hosted-download-engagement)_, a comprehensive study surveying 4,000 mobile users across the US and UK. The report examines evolving consumer attitudes toward data privacy, personalized advertising, and the value exchange between users and publishers.

AI is the biggest fundamental shift that will change the way DTC brands serve ads and how shoppers shop from DTC. When you think about where direct to consumer (DTC) came from, it started with a simple concept: Anyone could come up with an idea and create their own online store. Then in the mid-2000s, e-commerce platforms like Shopify made it easier for anyone to launch an online store. And social media giants like Facebook (now Meta) gave brands new ways to reach customers directly, and that’s really where this whole world was born.

ThredUp, one of the largest online resale platforms for apparel, shoes, and accessories, today released its 2025 Holiday Report. The study, conducted by GlobalData and surveying 2,000 consumers, reveals that despite economic uncertainty, holiday spending remains resilient, with a major shift to circular shopping: consumers plan to dedicate nearly 40% of their total holiday budgets to secondhand gifts, up from the 30% they typically spend on resale in their everyday shopping.

What are the trends shaping consumer sentiment and behavior in 2025—and what are the implications for brands and retailers? People are spending more of their time alone and online. Gen Zers don’t feel financially secure but are willing to splurge. In their search for value, shoppers are buying smaller pack sizes or lower quantities of their preferred brands.

These are some of the trends highlighted in McKinsey’s ConsumerWise research on consumer sentiment and behavior, drawing on a survey of more than 25,000 consumers in 18 countries. Two ConsumerWise leaders discussed the findings on a recent webinar, excerpts of which are featured in this episode of the McKinsey on Consumer & Retail podcast, hosted by Monica Toriello. An edited transcript follows. (For ConsumerWise insights about the upcoming US holiday shopping season, read “ An update on US consumer sentiment: Settling in for a tepid holiday season,” and the related podcast episode, “ Holiday shopping 2025: US consumers hunt for early deals.”)

Customers are worrying over payment security, privacy and potential mistakes with autonomous AI purchases, a Riskified survey found. Nearly three-quarters of global consumers say they are using AI in their shopping journeys, according to a survey of more than 5,000 people released Monday by Riskified.

Only 13% of consumers say they’ve had an AI complete a purchase after it guided them to a website, but 70% say they feel at least somewhat comfortable with an AI agent making purchases on their behalf.

Secondhand shopping will help drive sales this holiday season as shoppers plan a sharp increase in the percentage of their budgets allocated to resale. Consumers plan to allocate nearly 40% of their total holiday budgets to secondhand gifts, up from the 30% they typically spend on resale in their everyday shopping, according to online resale platform ThredUp’s “2025 Holiday Report.”  And 66% of all respondents are open to giving secondhand gifts, a figure that jumps to 80% for millennial respondents.