Visa has launched its inaugural Retail Spend Monitor via Visa Consulting & Analytics (VCA), offering a detailed look at consumer spending patterns this holiday season. Preliminary data reveals a 4.8% year-over-year increase in U.S. retail holiday spending across all payment types, including cash and checks, unadjusted for inflation.
“This holiday shopping season, we’re seeing growing consumer confidence as people returned to in-store experiences and shopped online to celebrate with loved ones,” said Wayne Best, Visa’s chief economist. “The adaptability of consumers and retailers underscores the strength of the economy.”
Key Trends:
- Brick-and-mortar resurgence: In-store spending comprised 77% of total holiday retail spending, growing 4.1% compared to 1.6% last year.
- E-commerce momentum: Online shopping rose 7.1%, though slightly slower than last year’s 10.3%.
- Electronics: Sales climbed 4.2%, up from 2.8% in 2023.
- Fashion focus: Clothing and accessory sales increased by 5.0%, doubling last year’s 2.4% growth.
- Home improvement surge: Building materials saw a robust 4.7% growth, reversing last year’s 3.9% decline.
Globally, the holiday spirit spurred spending growth in Brazil (+12.2%), South Africa (+7.0%), Australia (+7.4%), and the U.K. (+2.3%). Meanwhile, Visa thwarted nearly double the amount of suspected fraud during Black Friday and Cyber Monday weekend compared to 2023.
Visa’s VCA, leveraging data from 234 billion annual transactions, helps clients understand consumer behaviour and optimize strategies. Kate Manfred, Visa’s North America head of advisory services, emphasizes how this deep analysis aids retailers in market positioning and long-term growth.
