What are consumers actually buying for the holidays?

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Consumers may be tightening their purse strings, but that doesn’t mean they’re giving up on holiday shopping.

In fact, retail sales are projected to rise between 3.5% and 4% this season, according to the new Holiday Shopping Intentions Survey by retail organization ICSC. About 243 million consumers (91%) plan to shop this year, and 65% say it’s “more important than ever to celebrate holiday traditions.”

“Our forecast reflects that resilience,” ICSC President and CEO Tom McGee said in a statement, “but our data also signals a selective shopper putting pressure on retailers to connect in new ways and offer memorable experiences that entice them to spend.”

It seems shoppers are still shopping, but they’re being more intentional about what they buy and why.

According to ICSC, 1 in 3 respondents said they’ll spend more on experiences than last year, valuing memories over material goods. At the same time, brick-and-mortar shopping is staging a comeback with 92% of consumers (same as last year) saying they’ll likely make purchases in a physical store, with younger shoppers (93%) leading the charge.

When it comes to presents, gift cards are set to be the season’s winning pick; 64% of respondents plan to buy them, citing the ability to stick to a budget and avoid price volatility. Other top categories include apparel (55%), toys and games (54%), and food and beverages (43%)—all practical picks that reflect a value-conscious mindset.

That trend is mirrored in a recent McKinsey study, which found shoppers favoring gift cards (34%) and groceries (30%), suggesting consumers are prioritizing hosting, entertaining, and everyday utility, even amid economic uncertainty.

And before the holiday rush really begins, Halloween spending is already creeping up. Early data from Shopify, shared with Retail Brew, shows costume sets, pet costumes, and stage makeup among the most popular items so far.