US holiday retail spending up 4.2% YoY across payment types: Visa

Physical stores continued to account for the majority of holiday spending, with 73 per cent of payment volume taking place in-store, while online channels represented 27 per cent of retail spend. E-commerce remained a key growth driver, with online retail spending rising 7.8 per cent, supported by early-season promotions and the convenience of digital shopping, Visa said in a press release.

General merchandise or one-stop shops recorded a 3.7 per cent increase as consumers prioritised convenience. Clothing and accessories performed strongly, with sales climbing 5.3 per cent, reflecting fashion-led demand during the holiday season.

Beyond the US, holiday retail momentum was visible across several international markets. Seasonal spending increased by 5 per cent in Australia, 4.4 per cent in Canada, 7.9 per cent in South Africa, and 3.6 per cent in the UK.

“Whether shoppers were upgrading their tech, refreshing their closets, or stocking up at one-stop shops, retailers delivered seamless shopping experiences both in stores and online,” said Wayne Best, chief economist at Visa. “This season also marked a turning point, with artificial intelligence shaping how people discover products, compare prices, and interact with offers. This led to a more informed, more intentional consumer, ensuring they could stretch their discretionary spending.”

“This season also marked a turning point, with artificial intelligence shaping how people discover products, compare prices, and interact with offers,” added Best.

“Insights from the VCA Retail Spend Monitor help businesses adapt to changing consumer behaviours and prepare for the rapidly evolving future of commerce,” said Kate Manfred, North America head of advisory services at Visa.

ALCHEMPro News Desk (SG)