What: Holiday 2025 is marked by record retail sales, shifting consumer behaviours, and escalating cybersecurity threats impacting the retail, hospitality, and travel sectors.

Why it is important: Rising cyber threats and changing consumer behaviours during peak season reinforce the need for cross-sector collaboration and investment in digital infrastructure.

The 2025 holiday season presents a complex landscape for the retail industry, characterised by record-breaking sales figures and significant shifts in consumer behavior. While overall spending remains strong, with forecasts reaching up to $1.62 trillion, there is a notable divergence among age groups, as younger consumers, particularly Gen Z, are reducing their holiday budgets. This evolving consumer landscape is further complicated by the increasing integration of digital channels, with ecommerce and mobile commerce playing a pivotal role in driving sales. However, this digital transformation has also heightened the sector’s vulnerability to cyber threats, as evidenced by a surge in high-profile breaches and ransomware attacks targeting major retailers. The convergence of retail, hospitality, and travel sectors amplifies both the opportunities and risks, necessitating greater collaboration to address shared challenges. As retailers adapt to these dynamics, the focus on operational resilience, robust cybersecurity measures, and innovative customer engagement strategies becomes essential to sustaining growth and maintaining consumer trust during the most critical sales period of the year.

IADS Notes: Deloitte’s September 2025 forecast projects holiday retail sales to reach $1.62 trillion, while PwC’s September 2025 report highlights a generational divide with Gen Z reducing holiday spending. The Retail Bulletin and Retail Week, both in August 2025, detail a surge in cyberattacks and the urgent need for stronger digital infrastructure across the sector. Visa’s February 2025 analysis underscores the increasing convergence of retail, hospitality, and travel, emphasising the necessity of cross-sector collaboration and resilience to address evolving risks and consumer expectations.

2025 Holiday season cyber threat trends report