Resources Blog Retail
by Sarah Craig October 16, 2025
The holiday shopping season is upon us, and while it’s a time for celebration, it’s also the most critical period for retailers. This year, consumers are approaching their spending with a new mindset, shaped by economic shifts and technological advancements. To help you prepare, here are the key retail trends to know for the upcoming season, and some sales tax reminders to help you stay compliant.
Despite a generally healthy economy, many consumers are feeling a “cost-of-living squeeze” and are more cautious about their spending. According to a PwC survey, 84% of consumers expect to cut back in the next six months on items like dining out and clothing. However, this doesn’t mean they’re stopping their holiday shopping altogether. Instead, they are becoming more selective and value-focused.
Focus on dynamic pricing and promotions that adapt in real-time. Highlight the value proposition of your products and consider offering tiered discounts or exclusive deals to loyalty program members. When it comes to gift cards, don’t forget there are some sales tax nuances .
The retailer’s guide to sales tax compliance
Our free guide will walk you through the basics of sales tax compliance, including retail-specific topics like product and shipping taxability.
Artificial intelligence is no longer a futuristic concept; it’s an integral part of the modern shopping experience. From the moment a consumer begins their product search to the final purchase, AI is playing a significant role.
Implement AI-driven tools to enhance the customer experience, from personalized recommendations to virtual try-ons. Even small experiments with AI-enabled product viewing can make a difference. Retailers can optimize for AI shopping by creating consistent structured website content that provides detailed product listings, as well as creating an agent-responsive design. This means ensuring call-to-action buttons are clearly defined and accessible.
Shoppers are no longer tied to a single channel. They are fluidly moving between online and in-store experiences, and social media is a key driver of discovery and sales.
Integrate your social media presence with your e-commerce platform to create direct sales opportunities. Ensure your website is mobile-optimized and offer popular payment options like “ Buy Now, Pay Later” and accelerated payment options like Link , to reduce friction at checkout.
To succeed this holiday season, planning is key. Start early by analyzing your sales trends from last year’s and stocking up on best-selling products. Hire seasonal staff in advance to handle the increased demand and use technology to streamline operations and staff scheduling. And don’t forget to consider your sales tax compliance strategy.
Due to an increase in sales in the fourth quarter, many businesses will find themselves with sales tax obligations in new states. When you have sales tax nexus in a state, you’re required to comply with the sales tax laws in that state. Consider how the shopping season might trigger economic nexus in new states for your business, and be prepared to register for a sales tax permit in those states.
We outline how to register for a sales tax permit in each state here , or you can let TaxJar handle the registration process for you. Visit our registration page to request our team of experts manage your sales tax registration on your behalf.
Ready to automate sales tax? Sign up for a free trial of TaxJar today .
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