Payments giant Visa announced yesterday, December 23, that it has released its yearly Retail Spend Monitor from Visa Consulting & Analytics (VCA). The report offers a broad view of the retail activity in the US during the holidays, highlighting some interesting trends.

The global leader in digital payments pointed out that preliminary data has shown that overall holiday retail spending has gone up by 4.2% compared to last year across all payment types, including cash and check.

Visa’s chief economist, Wayne Best, commented on the findings, saying that whether shoppers were upgrading their tech, refreshing their closets, or stocking up at one-stop shops, retailers were able to deliver a seamless shopping experience, including both in stores and online.

Best also noted that the season marked an important turning point, as artificial intelligence helped shape how people discover products, but also compare prices and interact with offers presented to them. “This led to a more informed, more intentional consumer, ensuring they could stretch their discretionary spending,” Best added.

Details of the VCA Report

The report went on to say that the holiday season spending highlights include the fact that in-store shopping remains strong, as 73% of holiday payment volume was made in physical stores, while only 27% of retail spend happened online.

However, the report also found that e-commerce continues to expand, as online retail spending went up by around 7.8%, driven by early-season promotions and the pure convenience of this method of shopping.

Global holiday retail spending momentum also saw a rise, with markets outside of the US seeing seasonal spending increase. Australia saw a 5% surge, followed by Canada’s 4.4% increase. South Africa saw a 7.9% growth in seasonal spending, while the UK saw 3.6%.

The announcement also said that US seasonal spending snapshots by category saw a 5.8% rise in electronics sales, likely fueled by growing demand for high-performance devices in the AI era. General merchandise stores also recorded a 3.7% lift with consumers seeking convenience, while clothing and accessories sales climbed by 5.3%.

Furniture and home furnishing sales went up by a smaller percentage of 0.8%, although the increase still reflects a consistent seasonal demand. Finally, building materials and garden equipment sales are one sector that saw a decline of around 1%.

Visa’s head of advisory services for North Maerica, Kate Manfred, said that the insights will help businesses adapt to changing consumer behaviors and prepare for the rapidly evolving future of commerce.