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SYF's survey finds 83% plan most holiday shopping with trusted retailers, while 75% seek the best price.
Rewards gain traction as 66% expect to redeem retailer benefits, while 42% seek installment financing.
Some 40% would consider a store card with a first-purchase discount, potentially boosting SYF's volumes.
Synchrony Financial (SYF - Free Report) released its 2026 holiday shopping study, offering retailers a closer look at what could win consumers this season. Conducted during Oct. 1-6, the In Sync with Consumers survey found that shoppers are leaning toward stores they already trust, while keeping a close eye on prices.
The message to retail partners is clear: familiarity opens the door, but relevant offers and manageable payments will help close sales and encourage repeat visits. The survey signals that consumers appear both loyal and harder to impress. Some 83% plan to do most holiday shopping with trusted retailers, and 80% will check favorite stores for deals first. Yet 75% actively seek the best price, up nine percentage points from last year. Additionally, 28% of consumers are becoming more selective about what and where they buy, underscoring the growing importance of competitive pricing.
Synchrony used the findings to spotlight the growing role of rewards, store cards and flexible payment options in purchase decisions. About 66% expect to redeem retailer benefits, a 13-point increase, while 42% are looking for installment financing, up 12 points. Moreover, 58% plan to use specific credit cards to earn rewards points or cash back, highlighting the growing influence of card-linked incentives on purchasing decisions. However, promotions carry costs which can partially offset some of the gains.
With shoppers budgeting an average of $1,034 for gifts, merchants that combine trust with tangible savings could capture more holiday spending, while those relying on brand recognition alone risk losing checkout conversions. The top gift categories identified were gift cards (62%), clothing and accessories (60%), electronics (32%) and entertainment (22%).
For Synchrony, greater interest in rewards and financing could translate into more store-card applications, higher purchase volumes and deeper retailer partnerships. Notably, 40% of respondents would consider a store card offering a first-purchase discount, up eight points year over year. Increased card usage could support purchase volumes and interest-earning receivables.
How Are Peers Placed?
Bread Financial Holdings, Inc. (BFH - Free Report) is well-positioned to capitalize on growing demand for rewards and flexible financing through its private-label and co-branded credit cards and pay-over-time offerings. BFH’s 2026 holiday shopping survey found that 51% of consumers could be influenced by credit card offers, including cardholder discounts. Meanwhile, Capital One Financial Corporation (COF - Free Report) could benefit from increased holiday spending through its extensive credit card portfolio and rewards offerings. Its domestic card purchase volume rose 11% year over year to $250 billion in the third quarter of 2026. However, intensifying competition for price-conscious shoppers and higher rewards-related expenses could weigh on profitability growth across the industry.
Synchrony Financial’s Price Performance, Valuation and Estimates
SYF shares have plunged 12.3% year to date compared with the industry’s 18.1% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, Synchrony Financial trades at a forward price-to-earnings ratio of 7.00, down from the industry average of 13.11. SYF carries a Value Score of A at present.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Synchrony Financial’s 2026 earnings is pegged at $9.59 per share, implying a 1.8% increase from the year-ago period.
Image: Shutterstock
Trust Wins Hearts, Deals Win Carts: SYF Eyes Holiday Shopping Gains?
Key Takeaways
Synchrony Financial (SYF - Free Report) released its 2026 holiday shopping study, offering retailers a closer look at what could win consumers this season. Conducted during Oct. 1-6, the In Sync with Consumers survey found that shoppers are leaning toward stores they already trust, while keeping a close eye on prices.
The message to retail partners is clear: familiarity opens the door, but relevant offers and manageable payments will help close sales and encourage repeat visits. The survey signals that consumers appear both loyal and harder to impress. Some 83% plan to do most holiday shopping with trusted retailers, and 80% will check favorite stores for deals first. Yet 75% actively seek the best price, up nine percentage points from last year. Additionally, 28% of consumers are becoming more selective about what and where they buy, underscoring the growing importance of competitive pricing.
Synchrony used the findings to spotlight the growing role of rewards, store cards and flexible payment options in purchase decisions. About 66% expect to redeem retailer benefits, a 13-point increase, while 42% are looking for installment financing, up 12 points. Moreover, 58% plan to use specific credit cards to earn rewards points or cash back, highlighting the growing influence of card-linked incentives on purchasing decisions. However, promotions carry costs which can partially offset some of the gains.
With shoppers budgeting an average of $1,034 for gifts, merchants that combine trust with tangible savings could capture more holiday spending, while those relying on brand recognition alone risk losing checkout conversions. The top gift categories identified were gift cards (62%), clothing and accessories (60%), electronics (32%) and entertainment (22%).
For Synchrony, greater interest in rewards and financing could translate into more store-card applications, higher purchase volumes and deeper retailer partnerships. Notably, 40% of respondents would consider a store card offering a first-purchase discount, up eight points year over year. Increased card usage could support purchase volumes and interest-earning receivables.
How Are Peers Placed?
Bread Financial Holdings, Inc. (BFH - Free Report) is well-positioned to capitalize on growing demand for rewards and flexible financing through its private-label and co-branded credit cards and pay-over-time offerings. BFH’s 2026 holiday shopping survey found that 51% of consumers could be influenced by credit card offers, including cardholder discounts. Meanwhile, Capital One Financial Corporation (COF - Free Report) could benefit from increased holiday spending through its extensive credit card portfolio and rewards offerings. Its domestic card purchase volume rose 11% year over year to $250 billion in the third quarter of 2026. However, intensifying competition for price-conscious shoppers and higher rewards-related expenses could weigh on profitability growth across the industry.
Synchrony Financial’s Price Performance, Valuation and Estimates
SYF shares have plunged 12.3% year to date compared with the industry’s 18.1% decline.
From a valuation standpoint, Synchrony Financial trades at a forward price-to-earnings ratio of 7.00, down from the industry average of 13.11. SYF carries a Value Score of A at present.
The Zacks Consensus Estimate for Synchrony Financial’s 2026 earnings is pegged at $9.59 per share, implying a 1.8% increase from the year-ago period.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.