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Key Takeaways
- Overall holiday retail spending in the U.S. increased 4.8% from last year, according to a study by Visa.
- People still like to shop in person, with Visa reporting that 77% of total holiday retail spending occurred in brick-and-mortar stores.
- But online shopping grew at a faster rate than in-store spending, Visa said, showing that e-commerce is having a particularly strong season.
Cash registers, both physical and virtual, have been abuzz this holiday season.
Americans spent 4.8% more over the seven weeks starting Nov. 1 than last year, according to data Visa (V) released Monday. The growth is across all forms of payment—including cash and checks—and is not adjusted for inflation.
While consumers did a healthy share of their shopping in stores—Visa said 77% of total payment volume was made in brick-and-mortar locations—online spending increased at a greater clip.
“This holiday shopping season, we’re seeing increasing consumer confidence as people sought out in-store experiences—and went online—to purchase gifts and celebrate the holidays with friends and family,” Visa chief economist Wayne Best said.
Visa Says Online Spending Jumps 7.1% From 2023
Other retail analysts have also highlighted a surge in digital shopping, and credited e-commerce with capturing most of the growth in holiday spending. Online spending jumped 7.1% year-over-year while in-store spending rose 4.1%, Visa said.
Sizable sales jumps occurred in clothing and accessories (5.0%), building materials (4.7%), and electronics (4.2%), Visa said.
“This spending growth demonstrates the adaptability of both consumers and retailers and the overall strength of the economy,” Best said.
Experts generally anticipate a 3% increase in seasonal spending this year from 2023 levels, with the National Retail Federation (NRF) predicting total holiday spending in November and December up 2.5% to 3.5% to between $979.5 billion and $989 billion.
