Holiday retail spending in the U.S. grew by 4.8% year over year, according to preliminary insights from Visa Consulting & Analytics’ (VCA) inaugural Retail Spend Monitor. The analysis, which covers a seven-week period beginning November 1, includes data from all payment methods, including cash and checks, and highlights both the resilience of the economy and evolving consumer behaviours.
In-store shopping accounted for 77% of total payment volume, with spending in physical locations growing 4.1%, up from 1.6% last year. Despite the continued rise of e-commerce, with online retail spending increasing by 7.1%, these figures underscore the enduring appeal of in-person shopping, especially during the holidays.
Certain sectors experienced notable growth during the season. Sales in the clothing and accessories category rose by 5.0%, more than doubling last year’s growth rate. The electronics sector also saw increased activity, with a 4.2% rise compared to 2.8% in 2023. Meanwhile, building materials experienced a resurgence, growing by 4.7% after a significant decline of 3.9% last year, as consumers invested more in home improvements for the holidays.
Globally, holiday spending showed positive momentum. Brazil led the charge with a 12.2% year-over-year increase, followed by South Africa’s 7.0% growth and Australia’s 7.4%. The U.K. also recorded a 2.3% rise in spending, contributing to a broadly optimistic outlook for the season.
Visa also noted a significant increase in fraud prevention efforts, reporting nearly double the amount of suspected fraud blocked during Black Friday and Cyber Monday compared to the previous year.
The VCA Retail Spend Monitor draws on Visa network data and survey-based estimates, providing valuable insights into consumer behaviour with its consulting network across 75 countries.