Americans are spending more on holiday celebrations, dining and experiences, creating opportunities for Phoenix-area restaurants, shopping centers and retailers.

Santa’s sleigh might be carrying fewer presents this year, but Americans are making up for it with bigger holiday celebrations, more dining out and a little help from artificial intelligence.

According to JLL’s 2026 Holiday Shopping Survey, holiday shoppers plan to spend an average of $1,243 this holiday season, a 9.7% increase from 2025. But here’s the twist: Rather than loading up on presents, shoppers are putting more money toward food, decorations, entertainment and experiences.

The national survey of 1,054 consumers reveals a holiday shopping season that could be particularly beneficial for metro Phoenix’s growing collection of restaurants, entertainment destinations and shopping centers.

“This shift is particularly relevant in metro Phoenix, where restaurants, services and experiential concepts continue to drive retail activity,” said Ryan Tanner, vice president with JLL’s Phoenix retail team.

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More celebrating, less gift giving

Americans aren’t necessarily becoming more generous with their gift lists. They’re becoming more selective about whom they’re buying for — and spending more on making the holidays memorable.

JLL found that gift budgets increased just 3.1%, while spending on food and decorations jumped 16% and budgets for holiday experiences surged 17.3%.

In fact, 28.9% of shoppers plan to buy gifts for fewer people this year, up from 24.9% in 2025.

The average shopper plans to spend $598 on gifts, $327 on food and other holiday goods, and $318 on experiences.

That means holiday dinners, family outings, movies and entertainment are increasingly competing with traditional presents for a share of consumers’ wallets.

The mall makes a comeback

Reports of the shopping mall’s demise may have been premature.

JLL’s survey found that enclosed malls were the only shopping channel to gain popularity this year.

The percentage of consumers planning to visit enclosed malls increased from 49.9% in 2025 to 55.3% in 2026. Meanwhile, online delivery, open-air shopping centers and in-store or curbside pickup options all lost ground.

And mall shoppers aren’t just browsing.

Consumers planning to visit malls expect to spend an average of $1,357 during the holidays, compared with $1,101 among those who aren’t planning mall visits.

Mall shoppers also expect to spend an average of 67 minutes per visit, compared with 48 minutes for other shoppers.

“This trend also comes as Phoenix shopping centers continue to benefit from strong tenant demand, particularly in growing suburban corridors,” Tanner said.

Restaurants could be the season’s big winners

Forget shopping until you drop. This year, Americans are shopping until they’re hungry.

A whopping 93.2% of respondents plan to dine at restaurants during the holiday season, with those consumers expecting to eat out approximately six times between November and December.

Even more revealing, 20.8% of shoppers plan to purchase food or beverages every time they go shopping, compared with just 12.2% last year.

And those snack breaks are associated with bigger budgets.

Consumers who plan to buy food or beverages on every shopping trip expect to spend $1,909 during the holidays, compared with $686 among those who never purchase refreshments while shopping.

For Phoenix-area retail destinations, that could mean restaurants, coffee shops and entertainment venues play an increasingly important role in attracting shoppers and encouraging them to explore more stores.

AI joins the holiday shopping party

Move over, Santa. Artificial intelligence is becoming a holiday shopping assistant.

According to JLL, approximately six in 10 consumers plan to use AI to help make shopping decisions this season.

Among the findings:

  • 40.5% plan to use AI for gift ideas.
  • 33.7% will use AI to find savings.
  • 19.4% will ask AI where to shop.

Millennials are leading the charge, with 72.1% planning to use AI for holiday shopping decisions.

Interestingly, consumers using AI also expect to spend more time shopping in person. They anticipate spending an average of 65 minutes per shopping center visit, compared with 49 minutes among nonusers.

AI users are also nearly twice as likely to visit a mall.

For retailers, that suggests artificial intelligence may be helping consumers discover physical shopping destinations rather than simply steering them toward online purchases.

Gen X leads holiday spending

Not every generation is approaching the holidays with the same enthusiasm — or budget.

Generation X shoppers plan to spend the most, averaging $1,404, followed by baby boomers at $1,311.

Millennials are making a comeback, increasing their planned spending 21.5% to $1,220.

Generation Z, however, is tightening its holiday belt. Its planned spending dropped 26.9% to $759, making it the lowest-spending generation surveyed.

Despite smaller budgets, Gen Z shoppers still prioritize fun, allocating 32.2% of their holiday spending to entertainment and experiences — the largest share of any generation.

What it means for Arizona retailers

The biggest takeaway from JLL’s survey is that holiday shopping is becoming less about simply buying presents and more about creating experiences.

Consumers still plan to shop online, hunt for bargains and visit their favorite stores. But they’re also placing greater value on dining, entertainment and spending time together.

For metro Phoenix, where shopping centers increasingly combine retail with restaurants, entertainment and lifestyle amenities, that changing consumer behavior presents opportunities.

Retail destinations that give visitors more reasons to stay, explore and enjoy themselves could be particularly well positioned to capture holiday spending.