Visa: Holiday spending rose 4.2%; in-store sales capture 73% of spend

Article originally posted on HERE on December 30, 2025

Physical stores continued to dominate spending during the first seven weeks of the holiday shopping period.

Holiday retail spending increased 4.2% year over year across all payment types, including cash and check, according to preliminary data released by Visa. The data, which excludes sales from auto dealerships, gas stations and restaurants, is not adjusted for inflation.

The report, from Visa Consulting & Analytics, tracked retail sales activity over a seven-week period beginning Nov. 1, using a subset of Visa payments network data in the U.S., and survey-based estimates for other payment methods. It found that 73% of holiday payment volume was in physical stores, while 27% of retail spend happened online.

In other findings, e-commerce continues to expand. Online retail spending rose 7.8%, driven by early-season promotions and convenience.

Electronics ranked as the season’s best-selling category. Sales jumped 5.8%, fueled by demand for high-performance devices in the AI era, according to the report.

Sales of clothing and accessories were also strong, rising 5.3% year over year. General merchandise stores saw a 3.7% lift as consumers sought out convenience, Visa noted.

Furniture and home furnishing sales rose 0.8%. Building materials and garden equipment sales decreased by 1.0%.

“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.”

Global holiday retail spending momentum: Markets outside the United States saw seasonal spending rise, with Australia (up 5.0%), Canada (up 4.4%), South Africa (up 7.9%) and U.K. (up 3.6%).