US holiday spending increases 4.2 percent in the run up to Christmas

Although 2025 has been a difficult year for many retailers, one thing doesn’t appear to have changed much - consumers ‘appetite for holiday shopping. 

Preliminary data from Visa indicates that overall holiday retail spending grew 4.2 percent year over year across all payment types, including cash and checks. The data, taken from the global digital payment provider’s annual Retail Spend Monitor, suggests that retail activity across the United States remains strong during the festive period. 

“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, in a statement. 

“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.”

In store shopping dominated the holiday season, accounting for 73 percent of total payment volume, while digital channels captured the remaining 27 percent of consumer spending. Online retail continued to grow by 7.8 percent, driven by early promotional activity and the ease of digital shopping. 

Taking a closer look at US shopping categories, consumer electronics emerged as a top-performing category with sales climbing 5.8 percent, driven by strong interest in AI-enabled technology and advanced devices. General merchandise retailers experienced a 3.7 percent sales increase as shoppers gravitated toward one-stop shopping destinations. 

The fashion sector saw strong momentum, with clothing and accessories sales rising 5.3 percent, as consumers refreshed their wardrobes for the season. Home furnishings maintained steady performance with a modest 0.8 percent gain, demonstrating consistent seasonal interest in décor and furniture. 

International markets also showed robust holiday spending trends, with South Africa leading at 7.9 percent growth, followed by Australia at 5.0 percent, Canada at 4.4 percent, and the United Kingdom at 3.6 percent.